SCM software buyers

Tuesday, January 29th, 2019

Every year, Software Advice speaks to thousands of supply chain management (SCM) professionals across industry verticals who are seeking to deploy new software solutions. These interactions give us considerable insight into the broader market for supply chain management software.


This report will help buyers who are seeking new SCM solutions better understand the marketplace to facilitate more informed purchase decisions.


[Note: In this report, “SCM software? refers to a broad set of applications that include: warehouse management systems (WMS), transportation management systems (TMS), procurement, strategic sourcing, supplier relationship management (SRM), contract lifecycle management, demand planning and supply planning.]


Key Findings

Small businesses (those with annual revenue of $50 million or less) are willing to spend a rather hefty amount—$30,000, on average—for new SCM software.

Midsize and large businesses (those with with annual revenue above $50 million) are willing to spend an average of $171,000 for new SCM software.

Twenty-seven percent of larger businesses cite the need for stronger integration as a reason for seeking new software, compared to just 16 percent of small businesses.

Only 6 percent of small businesses are currently using commercial supply chain management software, compared to 21 percent of midsize and large businesses.

Among buyers seeking a new WMS, 20 percent of larger businesses and only 9 percent of small businesses want radio frequency identification (RFID) capabilities.

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