This blog originally appeared in Supply and Demand Chain Executive and can be read in its entirety here.
The "North America Supply Chain As A Service Market, By Component, Application, Organization Size, and Industry Verticals: Opportunity Analysis And Industry Forecast, 2018 - 2025" finds that the North American Supply Chain as a Service (SCaaS) market is projected to reach $7,854.40 million by 2025, growing at a CAGR of 7.5% from 2018 to 2025. The market was previously valued at $4,479.20 million in 2017.
SCaaS refers to the outsourcing of supply chain management functions to a service provider. This allows an enterprise to focus on its core capabilities. The SCaaS providers customize the supply chain management for an enterprise to efficiently deliver the services. The SCaaS providers can help both the major enterprises as well as small and medium enterprises to streamline their supply chain networks. Significant growth of the retail industry, driven by proliferation of mobile devices and internet penetration in emerging economies and increases in requirements for managing logistics services among several end users, drive the North American supply chain as a service market. In addition, rise in consumer expectations is expected to fuel the growth of the market as well.
However, security concerns pertaining to enterprise critical information among end users is the major factor that may impede the market growth. Integration of blockchain technology and omni-channel supply chain approach are expected to provide lucrative opportunities for the growth of the North American SCaaS market.
The North American SCaaS market is segmented based on component, application, organization size, industry vertical and country. In terms of component, the market is bifurcated into solution and service. Depending on application, it is classified into order management, warehouse management, logistics management and others.
Based on organization size, the market is categorized into large enterprises and small and medium sized enterprises. In addition, the market includes several industry verticals such as retail and e-commerce, healthcare and life sciences, manufacturing, energy and utilities, IT and telecom, government and defense and others. Based on the country, the market is analyzed across the U.S. and Canada.
For Ascent Specialized the above article speaks to the growing need for enterprises to outsource their existing supply chain management. As the market grows, and the expectations of American consumers grow along with it, businesses will be looking to companies like Ascent Specialized for this service.
Security is the main concern for any company looking for a service provider. According to Symantec, supply chain attacks nearly doubled in 2018. With this increased risk within recent years, organizations will be seeking partnerships with a company that can prevent theft, tampering and data leaks.
As the market demand grows for companies that offer expansive SCaaS, Ascent Specialized will continue to put out a product that meets the needs of its clients.