Top 20 Supply Chain Management Software Suppliers 2017

Consolidation, competition and the Cloud are shaping the software landscape around the world as the market
continues to heat up.
By Josh Bond, Senior Editor · July 13, 2017

The market for supply chain management (SCM) (http://www.mmh.com/topic/tag/SCM) software, maintenance and services
continued its growth in 2016, generating more than $11.1 billion, a 9% increase over 2015 revenues, according to the research rm
Gartner (http://www.mmh.com/topic/tag/Gartner).

That total includes applications for supply chain execution (SCE), supply chain planning (SCP) and procurement software. Since
the market’s 2% decline in 2009, the market has posted double-digit growth in four of the past six years, according to Gartner. The
SCM market is expected to exceed $13 billion in total software revenue by the end of 2017 and exceed $19 billion by 2021, Gartner
forecasts, with software as a service (SaaS) enabling new growth opportunities.

“It continues to be a good year for the supply chain overall,” says Chad Eschinger (www.gartner.com/analyst/9807/Chad-
Eschinger), managing vice president of Gartner. “The Cloud-based segment grew 20%, which is consistent with what we’ve seen in Technology in the
recent years.” News
The State of the DC Voice
The push for Cloud (http://www.mmh.com/topic/tag/Cloud) capabilities also fueled some of the acquisition activity over the last
Market
year. Eschinger cites examples such as Infor’s acquisition of GT Nexus, Kewill’s acquisition of LeanLogistics, Oracle’s acquisitions
(/article/the_state_of_the_dc_voic
of LogFire and NetSuite, and E2open’s acquisitions of Terra Technology and, more recently, Steelwedge.
Reviewers needed for
“Broadly speaking, we’re seeing cyclical consolidation,” Eschinger says. “For some companies it’s a land grab, for others it’s an certi ed technician
effort to add functional and technical underpinnings to go to the Cloud or provide a fuller complement of Cloud capabilities.” assessment test
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Suite vendors are increasingly inclined to offer end-to-end solutions, Eschinger says, tying in customer relationship management
capabilities, replenishment, network design, clienteling and more. In addition to supply chain e ciency, these solutions are also International Society of
aimed at improving and standardizing the consumer’s experience. Automation announces
2018 society president
“The Amazon effect continues to wreak havoc in retail and for manufacturers selling direct-to-consumer,” Eschinger says. (/article/international_society_of_
“Everyone wants real-time visibility into inventory, so data and the associated analytics continue to be front and center for most
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organizations.” Tompkins International,
partners with NFI
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Other Voices: Taking

inventory of more than just
goods

Top 20 supply chain management software suppliers

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More Technology News

SCM (SCE, SCP, Procurement) Total Software Revenue (/topic/category/technology)

2015 2016
No. Supplier SCP WMS  MES/MRPTMS ProcurementWebsite
Revenue  Revenue

1 SAP 2,666.8 2,932.4 x x x x x sap.com (http://sap.com)

2 Oracle 1,447.8 1,552.9 x x x x x oracle.com (http://Oracle.com)

3 JDA Software 467.8 475.9 x x   x   jda.com (http://jda.com)

Infor Global
4 105.5 243.3 x x x x x infor.com (http://infor.com)
Solutions

Manhattan
5 209.3 218.8 x x   x   manh.com (http://manh.com)
Associates

6 Epicor 162.1 191.6 x x   x x epicor.com (http://epicor.com)

Descartes Systems descartes.com

7 145.3 159.2       x  
Group (http://descartes.com)

highjump.com
8 HighJump 129.7 134.9 x x   x   (http://highjump.com)

basware.com
9 Basware 112.6 122.3         x
(http://basware.com)

10 Coupa 72.4 114.3         x coupa.com (http://coupa.com)

11 IBM 126.6 112.0 x       x ibm.com (http://ibm.com)

12 PTC 105.8 104.6 x       x ptc.com (http://ptc.com)

13 Dassault Systemes 74.9 92.9 x   x x   3ds.com (http://3ds.com)

blujaysolutions.com
14 BluJay 76.6 85.8       x   (http://blujaysolutions.com)

jaggaer.com
15 Jaggaer 82.2 84         x
(http://jaggaer.com)

16 Kinaxis 66.3 82.8 x         kinaxis.com (http://kinaxis.com)

perfect.com
17 Perfect Commerce 44.5 72         x
(http://perfect.com)

e2open.com
18 e2open 57.7 69.8 x     x x
(http://e2open.com)

19 Zycus 49.4 65         x zycus.com (http://e2open.com)

20 GEP 55 63.3         x gep.com (http://gep.com)

Total 10,180.7 11,183.3            

Revenue listed in millions of USD.
   
Source: Gartner (http://www.gartner.com/).

Inside the numbers

Market leaders in the overall category of supply chain management continued to dominate the market in 2016, with the top ve providers accounting for 49%
of the total market.

The individual market segments also posted impressive gains. Supply chain execution systems, which includes warehouse management systems (WMS)
(http://www.mmh.com/topic/tag/WMS) and transportation management systems (TMS) (http://www.mmh.com/topic/tag/TMS), grew more than 10% to
$3.5 billion. Once again, the top ve providers accounted for nearly half of the total. The market for supply chain planning systems crossed the $4 billion mark
after growing nearly 8%, with the top ve companies accounting for 59% of the list’s total revenues.

The same top ve market leaders had dominated the list since 2012, but Infor’s acquisition of GT Nexus
SCP total software revenue has bumped it from 11th place in 2015 to No. 4 with $243 million. There is still a sizable gap between
No. Supplier 2015 2016 fourth place and the top three, where SAP ($2.93 billion), Oracle ($1.55 billion) and JDA ($476 million)
retain their ranks.
1 SAP 1136.1 1238.9
In fth place is Manhattan Associates with $209 million, followed by Epicor, which grew 18% to $192
2 Oracle 580.6 612.6
million. The remainder of the list continues jockeying for ranks with each separated from the next by a
3 JDA Software 355.5 359.8 few million dollars. Five of those companies posted gains of 25% or greater.

4 Dassault Systemes 74.9 92.9 The rise of the mid-market

5 Kinaxis 66.3 82.8 Eschinger says 2016 was the year the mid-market really became a focus. Both LogFire and NetSuite
targeted small and mid-sized customers before they were acquired, he adds, and other smaller providers
6 PTC 82.5 82.6
with good functionality and install bases also were looking to expand their footprint. Companies of all
7 Epicor 52.8 60.9 sizes are trying to do more with fewer vendors, Eschinger says, so industry consolidation was a natural
byproduct. He adds that 2016 was also notable as a year when private equity played a big role in the
8 Infor Global Solutions 38 56
acquisition activity.
9 Logility 45.9 47.1
“Think about the digital transformation and the impact that’s having,” Eschinger explains. “E-commerce
10 e2open 33.8 44 is pushing organizations to be more agile. On-premise technologies with a high level of customization
can make them less able to react e ciently and be competitive. They have piled on different
Total 3,785.0 4,075.7
technologies and created a hybrid environment, but for a large enterprise, that’s a di cult thing to
Revenue listed in millions of USD. Source: Gartner unravel, whereas mid-market companies might nd it easier to rip and replace. It’s not less complex, but
there isn’t the sheer decades of investment and legacy to contend with, so a Cloud deployment is a
more reasonable option for them.”

Around the world

Dwight Klappich (www.gartner.com/analyst/25458/C.-Dwight-Klappich), vice president of Gartner, spoke to Modern about the global supply chain software
landscape, where signi cant shifts remain ongoing.

“There is signi cant interest around all things automation,” Klappich says. “Five years ago, automation came up a few times a year, now I get at least a call a
week.”

In terms of WMS in particular, North America and Western Europe are very mature markets where the majority of new deals are medium to large
organizations replacing systems, he says. They are on their second-, third-, sometimes fourth-generation WMS.

“The focus has evolved,” Klappich says. “When I did warehousing in the 1980s, it was just about getting control, some inventory accuracy, and perfect order
rates were terrible. Once that’s done, it’s about how to become more e cient. When you look at the same grouping of companies outside North America and
Western Europe, their requirements tend to be more like where we were in the 1980s, with a rst-gen WMS.”

Klappich notes a marked interest in mature markets for software modules like slotting and labor management systems (LMS) to achieve the next level of
productivity. In developing markets, however, where many companies are moving into their rst full-blown WMS, SAP, Oracle and others are seeing strong
growth. Particularly when scaling to peak, Klappich says, labor shortages are also a global concern, and have motivated companies to pursue more
automation and related software.

“For example, there was a large Asian tire manufacturer where the conversation started around best practices in a manual warehouse. That’s an oxymoron,”
Klappich says. “Over the next ve to 10 years we’re going to see a very heavy focus internationally. Where it took us 40 years to get to where we are, those
emerging markets will quickly climb the ranks, probably in about a third of the time.”

The Cloud
For the last 10 years, Klappich has conducted an annual study that includes questions about the adoption of Cloud-based supply chain software.

“The number who have adopted Cloud is up a little bit, but what has gone up dramatically is intention,” he says. “Last year we asked how likely a new system
would be Cloud-based, and it was 27%. This year it’s close to 40%.”

The WMS space is actually among the slower segments to adopt the Cloud, which Klappich attributes to the strong legacy of on-premise deployments in that
space. Nonetheless, Klappich says he is seeing concerns being addressed and Cloud interest picking up in WMS, as well as applications like transportation,
sourcing and procurement.

“In transportation, with the multi-enterprise nature of carriers, it quickly became clear that it made sense
to build a network on the Cloud,” Klappich says. “In the warehouse, there are a couple barriers. Security is SCE total software revenue
a smokescreen, but the real ones are performance and customization. The reality is that as much as we No. Supplier 2015 2016
coach people to be as close to standard as possible, there are scenarios where they need customization,
1 Oracle 506.7 552
and the question becomes how to do that in a multi-tenant Cloud environment.”
2 SAP 464 513.2
Spend analytics are also heating up, Klappich says. Multi-modal TMS solutions have included analytics
around spend, and 100 carriers and a thousand shipments a day is pretty straightforward. It’s a very 3 Manhattan Associates 188.4 197.8
different situation, he says, for a client that peaks at 2.5 million orders per day.
4 Descartes Systems Group 145.3 159.2
“There are a lot of complex rules that carriers all have, like dimensional weight pricing, and companies
are wondering if their people are costing them money by not being disciplined with box size,” Klappich 5 Infor Global Solutions 42.2 149.6
says. 6 HighJump 129.7 134.9
Multi-modal TMS is increasingly Cloud-based, but Klappich says parcel is the area where interest is really 7 Epicor 92.5 111
heating up as companies try to tie parcel into the omni-channel ful llment process. Parcel systems are
plenty mature, he says, almost as much as warehousing, but it’s the users who are changing. 8 JDA Software 102.9 107.1

“At the end of the line, you print labels and do some rate shopping. Now with omni-channel you need 9 BluJay 76.6 85.8
systems that work with what you need in the DC, but also in the store,” Klappich says. “A high school 10 Amber Road 47.1 53.3
employee who is asked to ship omni-channel orders before the UPS guy comes will need a different user
interface than in a traditional DC, and that’s where you see more Cloud-based solutions.” Total 3,191.4 3,517.7

Revenue listed in millions of USD. Source: Gartner

Making the List

This is the 16th time Modern has reported on the supply chain software market from a business standpoint since 2002. Although we initially focused on the
top providers of WMS solutions, the lines between supply chain execution and supply chain planning providers are no longer clearly drawn; ERP providers
supply WMS and supply chain execution providers offer planning and optimization solutions. Companies are increasingly looking to integrate their
procurement activities into their manufacturing, distribution and transportation strategies.

For that reason, Modern partners with Gartner to create this list. Our starting point is Gartner’s annual list of the top supply chain management providers. It is
a numbers game and not a popularity contest. The rankings are based on Gartner’s estimates of a provider’s annual sales for 2016. Meanwhile, Gartner’s
estimates are based on revenues related to supply chain management software and not a company’s total revenues.

Admittedly, this is an imperfect science. Gartner, for instance, strips out hardware sales from its estimates. What’s more, Gartner does not follow the
warehouse control systems (WCS) or manufacturing execution system (MES) spaces for the purposes of its chart. Finally, it does not include SCM suppliers
that focus on speci c verticals. That said, it is an apples to apples comparison to previous years.

About the Author

Josh Bond, Senior Editor

Josh Bond is Senior Editor for Modern, and was formerly Modern’s lift truck columnist and associate editor. He has a degree in Journalism
from Keene State College and has studied business management at Franklin Pierce University.

Article Topics
Gartner (/topic/tag/Gartner) · SaaS (/topic/tag/SaaS) · SCM (/topic/tag/SCM) · Software (/topic/tag/Software) · Supply Chain Software
(/topic/tag/Supply_Chain_Software) · · All Topics (/topic/all)