Rising competition has been causing the price of inventory management software to decline during the past three years; during the next three years, growing competition from small developers and declining input costs are projected to further push down prices. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Inventory Management Software in its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) October 01, 2014
Inventory management software has a buyer power score of 4.1 out of 5. This score reflects positive market conditions for buyers, including declining prices and moderately high negotiating power. According to IBISWorld analyst Andrew Yang, buyers of inventory management software are expected to face consistently declining prices during the three years to 2014. Lower input costs have also benefited buyers; suppliers have passed down cost savings from the falling price of computers and peripheral equipment. Growing competition from new software developers, facilitated by low barriers to entry into the market, has also contributed to price declines. Furthermore, low price volatility over the past three years has allowed buyers to better plan financially for future expenditures. Low price volatility indicates that buyers do not have to engage in long-term contracts to avoid sudden price hikes.
A wide variety of purchasing methods and types of inventory management software are available, benefiting buyers by allowing them to choose a software package that best suits their needs, continues Yang. Buyers that do not wish to enter long-term contracts can opt for cloud-based subscription software, which spreads the cost of the capital investment over a period of time. For buyers with larger inventories looking for greater efficiency, the software can be purchased on an on-premises basis, which allows them to customize the software and integrate it with existing IT systems and operations.
However, buyer power is hurt by high market share concentration among inventory management software suppliers. The market’s major suppliers include IBM, Microsoft, Oracle and EMC Corporation. With four companies collectively controlling more than 80.0% of the market, the high concentration makes negotiating with large suppliers more difficult because there is less competition among them. However, a rising number of smaller developers and the growing prevalence of freeware versions of the software have mitigated the effects of high market share concentration. For more information, visit IBISWorld’s Inventory Management Software procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of inventory management software. Inventory management software allows businesses to track and manage inventory. Inventory management software can be run through the cloud or in-house. Suppliers include software developers and third-party retailers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world’s leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/2014/10/prweb12212745.htm