Why The Largest Supply Chain Vendors are Small in Supply Chain Planning

What This Article Covers

  • The Modern Materials Handling List
  • The Limited Number of Vendors that Receive Income from Planning
  • Major Supply Chain Planning Vendors Not on the List
  • Fastest Growing Supply Chain Vendors
  • The Worst Vendor Website

Introduction

It was curious to find the list of supply chain vendors as published by Modern Materials Handling magazine.

Largest Supply Chain Vendors by Revenues

Supplier2015 Revenue 2016 RevenueReceives a Large Percentage of Income from Supply Chain PlanningRated Well by Brightwork
SAP2,666.802,932.40
No
No
Oracle1,447.801,552.90
No
No
JDA Software467.8475.9
Yes
Yes (only one application)
Infor Global Solutions105.5243.3
No
Yes
Manhattan Associates209.3218.8
No
Never Evaluated
Epicor162.1191.6
No
No
Descartes Systems Group145.3159.2
No
Never Evaluated
HighJump129.7134.9
No
Never Evaluated
Basware112.6122.3
No
Never Evaluated
Coupa72.4114.3
No
Never Evaluated
IBM126.6112
No
Never Evaluated
PTC105.8104.6
No
Never Evaluated
Dassault Systemes74.992.9
No
Never Evaluated
BluJay76.685.8
No
Never Evaluated
Jaggaer82.284
No
Never Evaluated
Kinaxis66.382.8
Yes
Never Evaluated
Perfect Commerce44.572
No
Never Evaluated
e2open57.769.8
Yes
Never Evaluated
Zycus49.465
No
Never Evaluated
GEP5563.3
No
Never Evaluated
Top 20 Supply Chain Management Software Suppliers 2017 - By Modern Materials Handling

*So many of the vendors on the list are coded as not evaluated because Brightwork Research & Analysis does not evaluate procurement/spend vendors, warehouse management vendors or transportation management vendors. 

Observations of the List

Things that stood out to us are the following:

The Limited Number of Vendors that Receive Income from Planning

It was curious that 0nly the vendors, JDA Software, E2Open and Kinaxis receive either a primary or a substantial amount of their revenues from supply planning.

The other vendors are either ERP vendors, spend/sourcing vendors, or focus their products on warehousing and transportation. These areas have some planning aspects but tend to be far more execution oriented in nature.

This shows that the core supply chain planning space (demand, supply, and production) planning is far smaller than we would have anticipated. SAP receives a decent amount of money from their supply chain planning applications, but their offerings are not rated well by us.

Fragmented Market

This shows how fragmented the market is for supply chain planning. There are so many vendors that we have rated highly (like Planet Together and DemandWorks) that are far away from breaking into this $50 revenues club.

Major Supply Chain Planning Vendors Not on the List

  • A major vendor in the area not on the list is Logility, which is at around $26 million to $27 million in yearly revenues.
  • ToolsGroup is another prominent vendor in the supply chain planning space that because they are private, they do not report revenues.

Many other vendors that are entirely SaaS-based like Lokad, Slimstock etc, have yet to reach scale.

The Fastest Growing Supply Chain Vendors

The fastest growing vendors are in procurement/spend management, lead by Coupa, Zycus and Perfect Procurement. In fact, all the fastest growing vendors on the list are either in procurement/spend management or are Infor — which due to an infusion from the Koch Brothers, had gone on an acquisition spree. ERP vendors purchasing advanced planning applications usually does not end well.

The fastest growing vendor of those that perform supply chain planning is Kinaxis.

The Worst Website

The worst website has to be Perfect Commerce. Perfect Commerce has roughly the same site volume as Brightwork Research & Analysis but did $72 million in business in 2016!

Furthermore, Perfect Commerce’s content is so bad, it deserves less than the volume it receives. This demonstrates that you don’t need a competent website to be one of the fastest growing companies in their space.

Conclusion

One of our higher level observations is that there are still many areas of supply chain planning that are not addressed by a software of any size. That is since i2 Technologies and Manugistics declined in 2001, there has been no vendor to ignite people’s imaginations anything like these vendors and to focus attention on supply chain planning.

Remote Supply Planning Consulting

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Software Ratings: Supply Planning

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