Report reveals big budgets for SCM software
Just 6% of small businesses use commercial supply chain management (SCM) software but report budgeting $30,000 on average in 2015 for purchasing new SCM software, according to Software Advice.
The consultants analysed 200 prospective SCM software buyers for its Supply Chain Management Software BuyerView 2015 report and found small businesses – those with annual revenue up to $50million – are willing to spend a relatively large amount to reduce data entry and automate tasks.
Software Advice surmised more organisations are catching onto the benefits of SCM software and stated that automating tasks like warehouse management is more important to midsize and large businesses – those with annual revenue above $50 million – than smaller ones.
The US-based midsize and large companies polled also revealed they are budgeting an average of $171,000 this year for new SCM software, and 21% said they currently use SCM software.
The report states that among buyers seeking a new warehouse management system (WMS), 20% of larger businesses and 9% of small businesses require radio frequency identification (RFID) capabilities.
Forrest Burnson, market research associate, Software Advice, said: “It’s unsurprising that more and more small and midsize businesses are seeking out complex supply chain solutions. As the global economy becomes increasingly interconnected, these solutions are becoming less of a luxury and more of a necessity for these firms to remain competitive.
“There are more available systems than ever for every niche possible, and the move toward the cloud and subscription based pricing has made these options very affordable.”