Supply Chain Management Industry Bulletin

Equiteq reviewed M&A and investment trends in the expanding supply chain management industry.

According to Research and Markets, analysts estimate the total addressable market for all Supply Chain Management (SCM) solutions to reach $22.7 billion by 2022 – growing at a CAGR of 12.6% since 2019. Industry growth is being driven by digital and data-driven technologies that continue to significantly transform SCM. SCM services and systems integrators (SIs) will become ever-increasingly important strategic players for large enterprise customers to enable this transformation.

Enterprise adoption of SCM platforms has undergone significant disruption during the past decade

Core SCM systems have shifted to the cloud with new disruptive cloud solutions being offering by the likes of SAP, Oracle and JDA Software. Analysts expect supply chain operations to keep expanding in both scope and sophistication. This will put pressure on SCM services firms and SIs to meet the demands of increasingly complex clients. The capture and analysis of data generated along the value chain will also remain a critical component of SCM process design and management. Firms with the ability to deliver data-driven SI services and drive adoption of tech-enabled supply chain management have increased EBITDA multiples 18.5% on average over their legacy counterparts.

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