“Nowadays, in 21st-century business lingo, communication most often means digital technology.”—Alen Nguyen, Rolling Stone
By and large, you don’t need anyone to tell you that the supply chain and logistics industries exploded during the pandemic. By now we understand the role e-commerce played in the explosion of the supply chain market. Subsequently, as the supply chain grew, so too did the infrastructure that supports it.
No, we aren’t talking about physical infrastructure and those summertime road repairs. Instead, we’re talking about supply chain data and the software tools that support it.
All things considered, it’s never felt more clear. SaaS and cloud software will continue to change the global economy. Indeed, the global SaaS-based SCM industry generated $7.3 billion in 2020. Then there’s the report by Allied Market Research. To summarize, SaaS supply chain market is expected to reach $26 billion by 2030.
In short, it seems like we’ve reached a tipping point in supply chain digitization. As Mike Droesch at Bessemer partners puts it, “digitization is enabling a new wave of data infrastructure, workflow automation, and collaboration platforms.”
Raise your hand if you know any businesses that need to upgrade their software in general. If that question hits close to home, you’ve come to the right place! Are you researching your next investment? Just looking to keep tabs on the supply chain SaaS? Either way, this post is for you. Ultimately, the premise here is that this post is a research tool to assist with your due diligence. Everyone more or less wants to know, Who’s the best of the best?
To answer this, first we’ll give a high-level overview of the supply chain SaaS market. In general, what is it? Why exactly is it growing? What trends should we follow? These are important questions. Next, we’ll look at the emerging subcategories within the supply chain software market. Finally, we’ll provide a list of leading companies that define each SaaS space. Let’s go!
First and foremost, let’s define software as a service (SaaS). Gartner.com defines SaaS as “software that’s owned, delivered, and managed remotely by one or more providers. The provider delivers software based on one set of common code and data definitions. It’s consumed in a one-to-many model by all contracted customers at anytime on a pay-for-use basis, or as a subscription based on use metrics.”
Many of us are familiar with SaaS by now. We know the software can be on-site or cloud based. We understand cloud-based software is preferable in the sense that it can be updated as easily as your smartphone.
In addition, we get how the subscription aspect works, too. A company ideally pays only for the software services and quantity it needs to get the job done.
But the boom in supply chain SaaS has attracted more than just subscriptions dollars. Namely, investors. For instance, Bessemer Venture Partners posted an investment presentation on YouTube that outlines its bullish case for supply chain software growth.
In it, Mike Droesch describes the tipping point that supply chain software has reached. Additionally, Bessemer presents what it calls the modern supply chain software market map. In turn, we researched the companies listed in this market map presentation. And below you’ll find a summary of the companies that make up the bullish future of supply chain SaaS.
According to Bessemer, supply chain software companies have settled into several niches over time. In broad terms, the modern supply chain software market map falls these subcategories:
That said, in the next section we have a list of the leading companies noted by subcategory. We’ve included the elevator pitch from their company website’s homepage as a teaser.
It’s worth pointing out that many companies obviously provide software solutions that cover multiple niches. For example, our first company on the list is Vector. Vector is a digitization expert that can integrate, streamline, and improve a company’s existing supply chain software stack and workflows.
Alan Nguyen suggested in a Rolling Stone article about the supply chain that “communication now actually means digital technology.” This statement sounds right. But what does it mean?
Simply put, our supply chains truly are only as good as our data. So, essentially every company listed today provides or relies on quality data points. How do we achieve the best data possible? By partnering with a digitization software expert, of course!
As you can see, there are many great SaaS solutions in the market. That’s the reality. Now and in the future. Our list today is just an example of some blue chip companies. Many more SaaS options are in the space. Not to mention there’s more software coming. A lot to process? Indeed. But this is why folks across the industry are bullish. The future of supply chain SaaS is bright. And it’s reason for optimism despite the supply chain crisis.
On the other hand, it’s a lot to take in. And you’re a decision maker. But your company hasn’t updated your system lately? In turn, researching the SaaS market is a time-consuming process. It can be intimidating. OK then, where to look first?
Here’s a rule of thumb. Going forward, communication is going to involve digital technology. In other words, you need to let the data talk. Thus, in many ways, we’re only as good as the quality of our data. So, it only makes sense that a good next move is to look at digitization.
To be sure, the future arrives one step at a time!
This post was written by Brian Deines. Brian believes that every day is a referendum on a brand’s relevance, and he’s excited to bring that kind of thinking to the world of modern manufacturing and logistics. He deploys a full-stack of business development, sales, and marketing tools built through years of work in the logistics, packaging, and tier-1 part supply industries serving a customer base comprised of Fortune 1000 OEMs.
Digital workflows across the supply chain.
