Average spend $171K on new SCM software...
New research form the US advisory company Software Advice found that medium size and large firms will spend an average of $171,000 (£109,000) for new software, this year. The study talked to a random sample of prospective software buyers from 100 small and 100 large businesses in the US.
The research, discussed in Supply Management found that 21 per cent of large firms use supply chain management software, 6 per cent of SMEs do so but this is up from 2 per cent in 2013.
Software Advice said the software was being used to strengthen supply chains, increase transparency and visibility, harmonise data flowing in and out through multiple channels and eliminate manual tasks, data entry or more complex warehousing operations.
Some 27 per cent of larger businesses cited stronger integration as a reason for seeking new software, compared to just 16 per cent of small businesses. This was likely to be, the study said, because bigger businesses worked with more clients, suppliers, vendors and contractors, tended to have more physical locations, and sold a higher volume of goods across a wider geographical area.
Automating tasks were also significantly more important for larger businesses at 37 per cent, than for small businesses at 24 per cent. Software Advice said software manufacturers were increasingly providing smaller businesses with lower cost solutions and subscription based services. They found that businesses with revenues of less than $50 million (£31 million) – are preparing to invest an average of $30,000 (£19,000) on commercial supply chain management software this year.
Automating tasks were also significantly more important for larger businesses at 37 per cent, than for small businesses at 24 per cent. Software Advice said software manufacturers were increasingly providing smaller businesses with lower cost solutions and subscription based services. They found that businesses with revenues of less than $50 million (£31 million) – are preparing to invest an average of $30,000 (£19,000) on commercial supply chain management software this year.
To read more in this article in Supply Management…