Companies are eager to make supply chain processes more efficient, according to new research by Reportstack, which revealed that the supply chain management software industry is set to grow 8.9 percent a year from 2011 to 2015.
Even firms without large IT infrastructure can adopt the systems, as the source stated that retailers have more access to Software-as-a-Service offerings than ever before. It did caution, however, that the many different business models in the sector could pose a challenge.
One of the motivating factors behind the new focus on supply chain software is, according to Reportstack, a rising desire to manage inventory in an efficient fashion. The worldwide economy remains unstable following the global recession, meaning that the funds needed to keep large inventory can be hard to come by.
According to Reuters, the fashion market in the United States has become highly focused on speeding supply chain procedures and lowering inventory.
“Traditional brands need to have a much shorter communication line between the seller and the buyer. They need to allow at least some buyers to make decisions outside of the structure.,” apparel sourcing agent Munir Mashooqullah told the news provider.
Strong supply chain management can help companies keep overhead low. With that need in high demand, its popularity is unsurprising.