The supply chain management (SCM) software market has experienced muted growth over the past year – but there is little doubt that organisations want or need applications in this category, says a recent report from IT market research company AMR Research.

This is good news for SCM specialists such as i2 Technologies and Manugistics, as well as suppliers from the enterprise resource planning software market, such as SAP, Oracle and PeopleSoft, who have expanded into SCM software in recent years. Major business initiatives – driven by increased pressure to meet customer demand more efficiently and accurately – will be the key driver of growth in the space, according to AMR analysts.

In its survey of 509 organisations, 54% of respondents said they were yet to deploy SCM software, but of these, 20% plan to implement it within the next year.

Among these companies, implementing demand planning and forecasting tools is a priority, but newer areas of SCM are set to grow. “The complexity of new delivery operations is requiring a refocus on transportation, specifically on inefficient inbound logistics.

Additionally, as companies increasingly move their manufacturing offshore, security requirements will increase growth in the transportation management software market, including international trade logistics applications. This new infrastructure will provide the added benefit of “improved customer visibility and delivery efficiencies,” says AMR’s report.