Global Supply Chain Market Valued at $37.41 billion by 2027
Supply Chain Management involves the management and movement of goods and services from one point to the other.
It also involves the storage and maintenance of these goods and services to make sure the demand meets supply in the most efficient way possible. It is very important for SCM to work efficiently as it ensures that there is no shortage of products, whether for human or industrial consumption. The marketing channels also play a very important role as they make sure that the goods and services manufactured reach the end consumer on time. Though SCM is still an area of expertise which needs to be explored to its full potential, its importance is paramount for the success of any product or service. And now market research expert Valuates Reports has stated that the SCM sector or market will touch $37.41 billion in its market size by the year 2027! In 2019, the SCM sector was valued at $15.85 billion. The current growth rate of the sector is projected to be at 11.2% between 2020 and 2027.
Reasons for Growth in SCM Market Size:
For the first time, manufactured goods and services are on the same tax platform and all products and services are subject to the same tax rates throughout the country. GST has finally transformed India into one unified marketplace.
The major reason behind the growth in the sector is because the world population is growing with each year and so is the demand with it. Hence, there will be a need to produce products and services in large quantities. This will in turn create pressure on the sector to ensure timely movement of these goods and services. And hence, efficient working of the supply chain channels is of utmost importance. Another reason is that there is an increased dependency on digital tools to make sure the supply is done on time. Digital tools like machine-learning, multi-enterprise visibility and in-memory technologies make it far easier for companies to keep a track of the products and services sent for supply. These innovative technologies are also helping businesses stay ahead in the game, which in turn results in more revenue for the sector. Also, there is a growing need for regulatory compliance to make sure there is transparency on the actual production and movement of products and services. All of the above reasons will surely have a positive impact on the market size of the SCM sector which will result in increased market size as predicted.