If You Supply It, They Will Buy


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Globalization will help push the worldwide supply chain management market at a compound annual growth rate of more than 9 percent over the next five years, according to a report from the ARC Advisory Group.

Capital spending on information technology has rebounded. Added investment capital and increased market confidence have encouraged demand, spurring sales in supply chain management solutions. Analyst Clint Reiser, principal author of the ARC report, said manufacturing growth in countries like China, India and Brazil will drive increased sales.

Reiser told β€œARC expects strong SCM sales growth to occur in emerging market regions due to lower current market penetration, higher economic growth rates and the increasing adoption of information technology within these regions.”

IT improvements have helped demand-driven manufacturing replace production-driven manufacturing. And organizations are increasing their integration of processes that previously were isolated in silos, giving them a more comprehensive view of their overall operations. Integrated ERP, supply chain management and production management systems are giving corporations a holistic view of the entire supply chain.