AMR Predicts Growth and Global Expansion in Supply Chain Management Market

Advanced Manufacturing Research, Inc. (AMR) and executives from supply chain management (SCM) and enterprise resource planning (ERP) software companies offered insights into changes affecting the supply chain management market at AMR's Investment Conference on Supply Chain Management, held April 28 in New York.

While high technology and consumer products remain important supply chain management markets, AMR notes a demand for new solutions across a wide range of verticals including chemicals/pharmaceuticals, metals and paper, and automotive. According to AMR, the supply chain management market will reach $2.4 billion in 1998, up from $1.6 billion last year. For the period 1997-2002, AMR anticipates 50% compound annual growth, resulting in a market worth $12 billion by year end 2002.

AMR believes that the ERP market will show a 37% CAGR from 1997-2002, leading to a market worth $50 billion by year end 2002. To fuel this growth, the ERP vendors will be expanding into complementary applications, including supply chain management and sales force automation.

Last year, North America represented 76% of the supply chain management market. AMR predicts that the supply chain market will follow the ERP pattern. "We expect that North America will represent about 50% of the market, followed by Europe (33%)," said John Bermudez, group director, supply chain research. "The rest will be split between Asia-Pacific and Latin America, with the Middle East and Africa representing the smallest markets."

Based in Boston, MA, AMR is an industry and market analysis firm specializing in enterprise applications and related trends and technologies. AMR helps Global 1,000 companies evaluate, select, and manage new systems for every part of the enterprise, including logistics and supply-chain management, enterprise resource planning (ERP), plant operations, and electronic/internet commerce.

For more information: Advanced Manufacturing Research, Two Oliver Street, Fifth Floor, Boston, MA 02109-4925. Tel: 617-542-6600; Fax: 617-542-5670.