Procurement Market Intelligence Report

Supply Chain Management Software
Sourcing Guide & Market Intelligence

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Supply Chain Management Software Global Overview

Definition

Summary

Supply chain management software helps businesses track and execute tasks related to supply chain transactions, supplier relationship management, and more. Buyers include government agencies, manufacturers, wholesalers, and retailers.

This Report Includes:

  • Purchase Order Management
  • Inventory Management
  • Input Sourcing Management.

Not in this Report:

  • Open-source SCM Software
  • Specialized Inventory Management Software
  • Warehouse Management Software

Global Supply Chain Management Software Procurement Trends

Discover the top international trends affecting procurement in the global Supply Chain Management Software market.

Neutral


GSA memo asks agencies to review consulting contracts

  • The General Services Administration (GSA) recently issued a memorandum asking government agencies to review their consulting contracts with the ten highest-paid firms. The ten firms are Accenture PLC (Accenture Federal Services), Booz Allen Hamilton Inc., CGI Group Inc. (CGI Federal), Deloitte Touche Tohmatsu (Deloitte Consulting), General Dynamics Corporation (General Dynamics IT), Guidehouse Inc., Huntington Ingalls Industries Inc. (HII Mission Technologies), International Business Machines Corporation (IBM), Leidos Holdings, Inc., and Science Applications International Corporation, Inc. (SAIC).
  • The memo states that agencies are strongly encouraged to cut non-essential consulting contracts, providing a list of those intended to be terminated by March 7, 2025. By April 19, 2025, agencies must submit their reviews of non-GSA consulting service contracts.
  • According to the GSA, the ten consulting firms identified are set to receive $65.0 billion in fees in 2025. The Department of Defense (DoD) has stated its intention to terminate or descope contracts non-essential to the DoD’s purposes; some of the largest market players with high-value DoD contracts include Booz Allen Hamilton, Deloitte, and Accenture.
  • According to the Government Accountability Office, in the fiscal year 2023, government agencies spent $478.0 billion on services, with the DoD accounting for $230.0 billion and non-defense agencies accounting for the rest. The DoD spent $21.3 billion on support, professional, and engineering and technical services, while non-defense agencies spent $21.4 billion on professional services, which includes consulting, training, and support services.
  • The Department of Veterans Affairs (VA) initially cancelled 875 contracts (amounting to around $2.0 billion) but has currently paused efforts. However, contract terminations across most agencies are expected to continue.

Positive Trends


The DOJ proposes Google breakup in latest tech antitrust action

  • In August, Google was found guilty of operating as a monopoly and engaging in anti-competitive practices through the operation of its search engine business.
  • In response to this ruling the Department of Justice (DOJ) has stated it will seek a breakup of Google’s business segments, among other similarly harsh penalties. While the actual penalty Google receives must be approved by the judge, the DOJ’s proposed penalties signal a zero-tolerance policy toward tech monopolies.
  • During the last few years, the Federal government has significantly increased its enforcement actions against major technology companies in an effort to contest the high level of market share concentration in this sector.
  • These actions include high-profile anti-trust lawsuits against Amazon, Apple, and Meta, in addition to the case against Google. Consequently, the results of these lawsuits could significantly affect the structure of a wide range of tech markets.

Global Supply Chain Management Software Market - Suppliers by Region

Country/Region Number of Suppliers
#1 Europe 555
#2 United States 425
#3 China 275

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  • Canada
  • United States
  • Mexico
  • Latin America
  • South America
  • India
  • China
  • Europe
  • Africa & Middle East
  • Australi & New Zealand
  • Oceania & Southeast Asia

2

Geography Drilldown - US & Europe

Average Cost of Supply Chain Management Software

United States

2026 Market Pricing
$7.00 to $X,XXX.XX
per user per month

Europe

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Average Price

Prices in the Supply Chain Management Software market range from $7.00 to $X,XXX.XX, depending on Features, Capacity, Device Accessibility and Level of Support. For example, lower prices are associated with Purchase order processing, Inventory management and Warehouse management, whereas higher prices are associated with Insurance management.

Need the scoop on international price trends?

Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.

Supply Chain Management Software Category Price Trends

Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Supply Chain Management Software market, prices in the US have grown 0.5% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +2.2%.

United States (2022-2025)

0.5%
Compound Annual Growth Rate

Europe (2022-2025)

2.2%

Compound Annual Growth Rate

Wondering where prices are heading?

Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.

Cost Analysis - Total Cost of Ownership for Supply Chain Management Software

Total cost of ownership is Medium in the Supply Chain Management Software market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Cancellations may raise the total cost of ownership unexpectedly.

Negotiated Before

Customization

Customization and integration of the product into the buyer’s operational processes will take significant time and effort and will usually require help from dedicated professionals on the supplier side.

Installation

Due to the complex nature of the product, supply chain software is not plug-and-play. Buyers that decide to purchase on-premise SCM software rather than remotely accessed SCM software will incur a higher total cost of ownership due to installation costs.

Billed During

Training

Buyers may face costs related to training their employees or customers in the proper use of the software.

Support

Ongoing customer and technical support are typically billed on a monthly, quarterly, or ad hoc basis.

Upgrades

Buyers that want to use the newest version of SCM software need to purchase version upgrades, which increase the total cost of ownership.

Unforeseen

Cancellations

Buyers may be liable for early termination and cancellation fees, which may be a flat rate or a share of the contract’s size. Buyers should pay close attention to cancellation terms and negotiate low fees related to cancellation.

Buyer Power in Procurement Negotiations

In 2026, buyer power amounts to 1.8 in the United States. Buyer power is most positively impacted by Market Share Concentration. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more

United States

1.8

Europe

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Buyer power forecasts: your glimpse into the future

Develop strategies for the upcoming year and identify unforeseen opportunities for buying now

  • Actionable "Buy Now" and "Buy Later" insights
  • Near-real-time updates to current and forecast Buyer Power Scores
  • Methodology and weightings for Buyer Power Score Components

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Supply Chain Risk

The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:

1st

Tier Suppliers

  • Operating Systems Software Publishers
  • Computer Manufacturers
  • IT Consultants

2nd

Tier Suppliers

  • Intellectual Property Licensing Suppliers
  • Semiconductor & Circuit Manufacturers
  • Computer & Software Wholesalers
  • Office Stationery Manufacturers

Biggest Supply Chain Management Software Suppliers in the US by Revenue

The largest Supply Chain Management Software vendors by revenue in the US are Sap Se, Koch Industries Inc. and Oracle Corporation. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more

Supplier Operational Size Headquarters Number of Employees Market Share (%) Market Share Performance (3yr trend) Total Revenue ($ million) Profit Level (%) Risk Level
Oracle Corporation Global AUSTIN, CA >10,000 10-15
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Sap Se Global WALLDORF >10,000 25+
Panasonic Corp Global Kadoma, JP >10,001 < 5
International Business Machines Corporation Global ARMONK >10,000 < 5
Koch Industries Inc. Global Wichita, KS >10,000 < 5
Fortive Corporation Global Everett, WA >10,000 < 5
Dassault Systemes Se Global Vélizy-Villacoublay, FRA >10,001 < 5
Manhattan Associates Inc. Global ATLANTA 1,001-10,000 < 5
Descartes Systems Group Inc. Global WATERLOO 1,001-10,000 < 5

Looking for a list of suppliers by country?

Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.

Profit Analysis

The average profit margin across vendors in the Supply Chain Management Software market is 17.2% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more

Vendor & Supply Chain Analysis

High profit margins among market vendors lead to a low level of financial risk, which minimizes the chance of supply disruptions due to supplier financial issues.

The SCM software market exhibits moderate market share concentration, with the top four vendors accounting for 30.0% to 50.0% of market revenue. However, large-scale buyers looking for a comprehensive supply chain management solution will only have a few suppliers; thus, their negotiation power is significantly restricted.

While the production of software does rely on some inputs, namely computing hardware and software, market providers rely on computing equipment as capital investments rather than inputs consumed during production. As a result, supply disruptions are unlikely to lead to significant service interruptions in this market.

The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.

Supplier Information

Oracle Corporation

Oracle Corporation is a global technology company that provides enterprise information technology (IT) products and services. It comprises three businesses: the Cloud and License business, which offers Oracle Applications, Oracle Database, and Oracle Middleware software offerings, among others, deployed using... Subscribe to learn more

Sap Se

Sap Se is a public company operating globally in the information, professional, scientific & technical services and educational services sectors. The company's offerings include warehouse management systems, travel management software, recruitment software, order tracking software, contract management software.... Subscribe to learn more

BluJay Solutions Inc.

BluJay Solutions Inc. is a private company operating globally in the information sector. The company's offerings include supply chain management software and inventory management software. Founded in 1972, the company is currently headquartered in Holland, Salford Quays, United Kingdom with an estimated 750... Subscribe to learn more

Dassault Systemes Se

Dassault Systemes Se is a public company operating globally in the information and professional, scientific & technical services sectors. The company's offerings include supply chain management software, inventory management software, erp software and digital twin solutions. Founded in 1981, the company is... Subscribe to learn more

Descartes Systems Group Inc.

Descartes Systems Group Inc. is a public company operating globally in the information sector. The company's offerings include supply chain management software and inventory management software. Founded in 1981, the company is currently headquartered in WATERLOO N2V1C6 with an estimated 1860 employees. Subscribe to learn more

Fortive Corporation

Fortive Corporation is a public company operating globally in the manufacturing and information sectors. The company's offerings include laboratory sterilizers, leak detection equipment, temperature measurement instrumentation, air quality testing equipment, supply chain management software. Founded in 2016,... Subscribe to learn more

International Business Machines Corporation

International Business Machines Corporation (IBM) is a global integrated computer technology, hardware, software, and services provider. It organizes its business into four segments: Software segment, which provides software solutions for a hybrid cloud platform, data and artificial intelligence, automation,... Subscribe to learn more

Koch Industries Inc.

Koch Industries Inc. is a private company operating globally in the manufacturing, wholesale trade and information sectors. The company's offerings include warehouse management systems, corrugated boxes, drywall, resilient flooring, injection molding services. Founded in 1940, the company is currently headquartered... Subscribe to learn more

Manhattan Associates Inc.

Manhattan Associates, Inc. is a software company that develops, sells, deploys, services, and maintains software solutions for retailers, wholesalers, manufacturers, logistics providers, and other organizations. It operates a cloud-based platform, the Manhattan Active®, to deliver subscription-based software-as-a-services.... Subscribe to learn more

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Procurement Management KPIs for the Supply Chain Management Software Market

Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Customer Concentration. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Security and other factors.

KPI Level of Importance (1-5) Measurements Key Considerations
Average Resolution Time

Total resolution time

Number of resolved tickets

The average resolution time represents the average amount of time it takes to resolve a support ticket.

The average resolution time can be used to determine a company’s support responsiveness.

This KPI can help buyers ensure that their supply chain management software effectively addresses supply issues and minimizes downtime.

Customer Concentration

Revenue per customer (RPC)

Total revenue

The customer concentration represents the amount of revenue associated with a single customer.

The customer concentration can be used to determine the need to diversify client portfolios.

It is recommended that the customer concentration remains at or below 10.0%.

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Questions to Ask During Procurement Negotiations

How can I gain leverage during negotiations?

Competition

How do you win and retain business?

What sets your product apart from those of your competitors?

Customer Support

What is your client renewal or repeat business rate?

How do you evaluate customer satisfaction and how frequently? Is this information made available to clients?

Experience Qualifications

How have you handled scaling clients' systems as they have grown?

On average, how many years of experience does your staff have in this field? How does that measure up to the industry average?

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Supply Chain Management Software RFP Guidelines

What should my RFP include?

Organizational Overview

Buyers should provide the details of their organizations, including the number of employees, their office location(s), and the industries with which they are associated.

Buyers should state their reasons for purchasing new SCM software and state the benefits they expect to receive.

Statement Of Need

Buyers should state the SCM software features that they desire (e.g., the ability to specialize software functionality by industry, the ability to optimize demand and supply, and the ability to optimize production capacity).

Buyers should specify the number of end users that will need access to the software.

Project Budget

Buyers should specify their budget for the SCM software.

Buyers should include details about per-user spending expectations.

The RFP process made easy

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  • Supply chain and vendors
  • Global supplier breakdown
  • Market share concentration
  • Regulation and business requirements
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