Will the Global Supply Chain take an Olympics gold?

Aerial view Container ships at industrial ports in the business of import, export, logistics
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It’s been a roller-coaster ride for the US and global import industry. Looking at all the blogs we’ve written, it would seem the industry was trying out for Olympics gold in the hurdles, high jumps, and pole vault. Meanwhile, analysts have been hard at work keeping score of the situation and preparing outlooks for the industry. So, is your business on course to make the podium, and who will have to go back to the drawing board?

Reports Vs. Govt Data

What are the differences between the US Census Bureau stats and industry reports? The former shows official indicators from which industry can draw their conclusions. On the other hand, reports are a deep-dive by analytics companies who gather data by profiling major industry players. Their statistics depict possible outcomes but are usually at a price. Both methods are not just for interest but necessary for decision-making, staying current with import ebbs and flows, and retaining or creating a competitive advantage. Some people are comfortable reading through large chunks of digits; others prefer reading through reams of text that make sense of the numbers.

Supply Chain Management & Tech

The latest Allied Market Research report examined the supply chain management (SCM) market from 2021 to 2030. The results show that the 2020 SCM market was $18,699.45 million and could reach $52,632.37 million by 2030 – a CAGR of 10.7%.

The development of industrial-grade digital technology, the realization that supply chain visibility is essential, and movement to cloud deployment propel growth. Also, there seems to be a demand for management solutions and adopting SCM software, particularly in the pharmaceutical and healthcare sectors. However, the expense of implementing and maintaining SCM solutions and increases in business privacy and security concerns will negatively impact growth. However, demand for on-site transportation management systems (TMS) software will offset this, especially for SMBs.

Benefits of on-premises SCM solutions for businesses:

  • Joining and keeping up with the sector’s digital revolution
  • Control over security & other connectivity issues.
  • Improving scalability
  • Increasing speed
  • Enhancing reliability
  • Maintaining a competitive edge
  • Staying relevant in the market
  • Benefitting from & contributing to market growth

Sourcing & Procurement

In 2020, the sourcing and procurement sector dominated the SCM market and should continue to do so. This market is vital for US importers trying to get supplies at a competitive price. Sourcing focuses on lowering prices while improving quality and efficiency regionally and globally. On the other hand, procurement is buying procedures, including meeting US Customs Border Protection (CBP) requirements. These requirements include filing ISF (10+2), Entry summary (Entry 7501), and on-time payment of taxes and duties – failure to comply can mean harsh penalties and even legal action.

Post Covid-19 Estimates

The projection for SCM growth by 2030 ($52,632.37 million) is higher than pre-COVID-19 estimates. The epidemic’s supply chain disruptions caused many companies to recognize fast the need to invest in SCM and supply chain automation software, especially with the massive demand for online shopping. This investment will add to the growing SCM market size.

Who’s in the Lead?

The last question is a regional outlook – which country took home a gold medal in the SCM industry? Currently, North US was first on the podium, but watch out for a high growth rate in Asia-Pacific in the next few years. Rachita Rake of Allied Market Research says this is due to increasing awareness of the advantages of SCM solutions among enterprises. 

Key Takeaway

What do we learn from the above research? Based on 5-year records of key industry players and manufacturers in the Supply Chain and Logistics Software market, the study aims to help decision-makers plan strategically according to fast-growing market sectors and regions, the dynamics impacting the market, and opportunity areas. Most importantly, the report looks at emerging market trends and the competitive landscape of key industry players.

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