The global revenue for supply chain management software is on track to reach in the region of $10 billion (£5.8 billion) before the end of 2014, according to a new report.
Results of a survey conducted by technology research giant Gartner have led to this conclusion, following the questioning of 447 individuals working within the industry.
According to data from the company, revenue from this type of software is expected to grow by 12.2 per cent over the course of 2014 to reach the significant sum of $10 million, which would indicate its highest annual growth rate in three years.
Research vice-president at Gartner Chad Eschinger commented: "Both supply chain execution and supply chain planning revenues are on course to grow at double-digit rates in 2014."
Looking at the survey results in more detail, 43 per cent of respondents stated they were committed to finding one technology platform that would make internal operations smoother, while also allowing for improved communications with other parties involved in the chain, such as suppliers and buyers.
In light of this, Gartner believes almost 70 per cent of businesses will adopt such a strategy to integrate networks and systems in a bid to improve visibility regarding their supply chain.
According to the research specialist, almost 60 per cent of this revenue will come from software that is already being utilised by firms, but in 2013 around 16 per cent of investments in supply chain management were from companies using such technology for the very first time.
However, by 2018 these figures are expected to change significantly, with less than ten per cent of investment in the software coming from new clients, but the majority instead relating to the purchase of 'add-ons'.
What does this mean?
Mr Eschinger explained: "The market for supply chain management solutions is influenced by a climate that continues to make large capital expenditure difficult for many organisations.
"This environment will drive many organisations to adopt solutions that are deemed 'best of breed' and often delivered as a subscription, which provides more focused capabilities and typically enables less expensive and quicker deployments."
Mr Eschinger added that the trend towards companies using unifying application platforms is rapidly growing. He said this "will further drive sales of supply chain solutions as more companies adhere to a platform strategy".
Therefore, VC4's innovative product the Inventory & Management System (IMS) would be of great benefit to firms within the telecommunications industry looking to manage their networks and operations in one central location, as it has the capacity to register and integrate all those that a company is using.
As it can be used by all departments within an organisation, it can help to make every aspect of a business run more smoothly – whether that be across the supply chain or keeping track of what is going on within the networks.
IMS has been designed by telecoms engineers for others working within the industry, so is extremely sympathetic to the needs of its users.