Supply chain management has grown to become a crucial sector in today’s consumer-oriented world. A smartly managed supply chain network has both upstream and downstream benefits for any manufacturer. Well-performed downstream supply chain management helps companies satisfactorily fulfill consumer demand, thus ensuring consumer loyalty. Complementary to this, smart execution of upstream supply chain management guarantees a smooth raw material stream and production chain, leading to enhanced overall operational efficiency.
Increasing market competitiveness all over the world helped the smart mobile supply chain solutions amass a total market value of US$7,095.3 million in 2013. Ongoing globalization means that demand for smart mobile supply chain solutions has only one way to go, which is reflected in the expected CAGR of 13.2% for the global smart mobile supply chain solutions market over the period between 2014 and 2020.
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Globalization Helping Smart Mobile Supply Chain Solutions Market in Emerging Economies
As described above, the strong trend of globalization is the strongest growth driver for the smart mobile supply chain solutions market in the coming years. This helps the market in both the developed and developing world, since the two are often found on the opposing ends of supply chains. Accordingly, the highly developed and industrialized regions of North America and Europe led the global smart mobile supply chain solutions market in 2013.
The Asia Pacific market is expected to emerge strongly in the remainder of this decade thanks largely to the economic progress observed in countries such as Japan, China, and India. The smart mobile supply chain solutions market is expected to be aided massively by the growing spread of IT infrastructure in these countries, which is crucial for the operation and innovation of smart mobile supply chain solutions. This is aided by the modernization of the retail and manufacturing industries in these Asian countries in the last decade. The major factor restraining the smart mobile supply chain solutions market in Asia Pacific is the lack of widespread awareness about the market at present and the partially consequent cost volatility.
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Retail and Manufacturing to Continue Domination of Smart Mobile Supply Chain Solutions Market
The retail and manufacturing industries were the major end-use consumers for the smart mobile supply chain solutions market, with each taking up a market share of more than 18% in 2013. These two sectors are expected to grow strongly, particularly in Asia Pacific, in the coming years, helping the market for smart mobile supply chain solutions market. Other major end users of the smart mobile supply chain solutions market include IT and telecom, energy and utility, healthcare, logistics, and BFSI.
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The market for smart mobile supply chain solutions comprises the two product categories of software and services. Among the three types of services on offer in the smart mobile supply chain solutions market – integration, consulting, and management – the market for integration services is expected to grow at a strong pace in the coming years. In terms of software, connected supply chain planning (SCP) and connected sourcing and procurement are the two major categories, collectively accounting for more than half the market for supply chain solution software. The increasing clamor for an environment-friendly supply chain is expected to boost these two software segments in the coming years, as government regulations also favor supply chains that cause the minimal damage to the environment.
Heightened Preference for Green Solutions to Shape Smart Mobile Supply Chain Solutions Market
Due to increasing awareness about the consequences of climate change, supply chains that don’t affect the environment are not just being favored by regulatory frameworks around the world, but are also fast becoming an advertizing tool to promote the product among the growing eco-conscious consumer base. Success in adapting their operations to exploit this trend will shape the future performance of key players in the global smart mobile supply chain solutions market.