Supply Chain Management Definition and 11 Biggest Companies in the World

Published on February 8, 2023 at 5:33 pm by Omer Farooq in Lists, News

In this article, we will define supply chain management, review the global supply chain management market, and look at some of the biggest supply chain management companies in the world. If you want to explore similar companies, you can also take a look at 5 Biggest Supply Chain Management Companies in the World.

What Is Supply Chain Management?

Supply chain management (SCM) is the process of coordinating and optimizing all the activities and processes required to plan, source, produce, and deliver a product or service from the beginning of its lifecycle to the end customer. SCM encompasses a wide range of activities, including supplier selection, production scheduling, inventory management, order fulfillment, delivery, and returns. SCM also includes other functions such as customer service, forecasting, and quality control.

From the perspective of a business, supply chain management helps to increase efficiency, reduce costs, and create a competitive advantage in the marketplace. By having a better understanding of the whole supply chain process, companies are able to simultaneously maximize customer value, cut costs, and increase revenue, therefore driving top-line growth.

How Does Supply Chain Management Work?

In today’s fast-paced business environment, effective Supply Chain Management (SCM) is essential in order to maintain a competitive edge. Companies are increasingly recognizing the value of managing their supply chain in order to reduce excess costs and deliver products to the consumer more quickly. This involves closely controlling their own production, distribution, sales, and the inventories of their vendors, as well as the information systems needed to direct these activities. By keeping tighter control of internal inventories, internal production, distribution, sales, and the inventories of company vendors, companies can optimize their supply chain that can help them stay ahead of the curve.

The 5–Step Guide to Optimizing Your Supply Chain

The entire supply chain management process consists of five steps and a supply chain manager is responsible for the successful execution of each of these steps. A supply chain manager can be thought of as a one-man show. A supply chain manager is responsible for overseeing and managing a company’s entire supply chain, including planning, sourcing, production, logistics, and reverse logistics. They are responsible for developing strategies to improve the efficiency and effectiveness of the supply chain, and for ensuring that the company meets its supply chain objectives. They work closely with other departments in the organization to ensure an efficient flow of materials and products.

The first stage is the planning stage. This involves the creation of a strategic plan for the product or service. This includes setting objectives, determining the resources needed, and creating a timeline for the project. It is important to consider the customer’s needs and preferences, as well as the competition in order to create a comprehensive plan.

The sourcing stage in Supply Chain Management (SCM) involves determining the best tactics for acquiring the materials needed for manufacturing a product. This stage requires research and analysis to evaluate the various suppliers and decide on the most cost-effective and efficient way to source the necessary components. During this stage, companies may consider several factors including cost, quality, delivery time, and reliability. Additionally, companies may focus on sustainability and ethical sourcing practices, such as using eco-friendly materials and working with suppliers who treat their workers fairly. Once the sourcing strategy is in place, companies can begin to procure the necessary materials and components.

The production stage is literally at the core of the supply chain management process (in the middle) however it is most certainly not the final stage. The production stage involves the manufacturing process, as well as quality control and testing. At this stage, the focus is on ensuring that goods are produced efficiently and on time, at the right cost, and to the required quality standards.

Now that the product is ready to be shipped, the logistics and distribution stage involves the coordination of transportation, warehousing, and inventory management so that the goods are delivered on time and in the most cost-effective manner. This stage also includes customer service activities such as tracking orders and providing customer support. Ultimately, the goal of this stage is to ensure that the customer is satisfied with the product or service delivered.

Finally, we have the most critical and final stage: reverse logistics and returns. This stage involves the processes of managing the return of products from customers, either due to defects or customer dissatisfaction. The goal of reverse logistics and returns is to optimize the process of bringing products back into circulation or disposing of them responsibly. This stage of supply chain management involves tracking the returns, evaluating the cause of the return, determining the best arrangement for the product (such as repair, remanufacture, or disposal), and then either reselling the product or disposing of it in an environmentally responsible way. It also involves communicating with customers and providing them with appropriate forms and instructions for returning the product.

Photo by Jacques Dillies on Unsplash

The five stages of SCM are all essential in creating a successful business. By managing the entire process carefully, businesses can ensure that their products and services are of the highest quality and delivered on time. With the right SCM strategy, businesses can stay competitive in an ever-changing marketplace and improve their bottom line.

A Prime Example of Supply Chain Management

Amazon.com, Inc. (NASDAQ:AMZN) is a prime example of a company that has properly executed supply chain management. The company has revolutionised the way that consumers purchase products. Through the implementation of sophisticated technology and data–driven processes, Amazon.com, Inc. (NASDAQ:AMZN) has created a seamless and efficient supply chain. The company has successfully integrated its warehouse, delivery, and customer service systems, enabling customers to purchase, receive, and return products with minimal hassle. Additionally, Amazon.com, Inc. (NASDAQ:AMZN) has invested heavily in automation and robotics to further optimise their supply chain, leading to faster order fulfillment, reduced costs, and improved customer satisfaction. These efforts have helped Amazon.com, Inc (NASDAQ:AMZN) grow to become an e-commerce giant worth $1.05 trillion, as of February 7.

The Global Supply Chain Management Industry: Size and Major Players

The global supply chain management industry is constantly evolving to meet the needs of businesses in today’s ever-changing global economy. It is a complex and dynamic industry that requires strategic planning, advanced technologies, and the utilization of resources in order to be successful. The industry is composed of a wide variety of stakeholders including suppliers, manufacturers, distributors, customers, and third-party logistics providers.

According to an industry analysis report by Grand View Research, the global supply chain management industry was valued at $21.12 billion in 2022 and is expected to grow to $48.58 billion by 2030, at a compound annual growth rate of 11.1% from 2023 to 2030. This growth is driven by the increasing demand for supply chain management technologies, such as cloud-based solutions, data analytics, and machine learning. Additionally, the growing need for efficient supply chain operations and improved customer service, as well as the increasing number of mergers and acquisitions, are key factors driving the growth of the market.

The global supply chain management industry is benefitting from technological advances that are available today. These tech trends include the use of artificial intelligence (AI) and machine learning (ML) to optimize processes, the use of blockchain technology to ensure the secure flow of goods and the use of the Internet of Things (IoT) and cloud computing to monitor supply chain activities. AI and ML can be used to automate processes, improve accuracy and identify trends, while blockchain allows for the secure and decentralized transfer of data. IoT can be used to monitor the supply chain and provide real-time insights to allow for more efficient operations. Additionally, the use of cloud-based software is becoming increasingly popular, allowing for easier access and management of supply chain data. Finally, digital platforms are being developed to connect buyers and suppliers more efficiently and to streamline communication. Some of the world’s biggest providers of supply chain management software and solutions include International Business Machines Corporation (NYSE:IBM), SAP SE (NYSE:SAP), and Oracle Corporation (NASDAQ:ORCL). These companies, among others, are discussed in detail below.

Our Methodology

For this article, we focused on companies that are providing products and solutions which play a key role in supply chain management. We studied industry analysis reports and researched the companies mentioned in them. We further looked for companies, both public and private, that are involved in making software and solutions for the SCM industry. We narrowed down our list to companies with the largest market cap in case of public companies, and largest revenue or largest estimated valuation in case of private companies. These companies are ranked in ascending order of their market cap (public) and revenue or estimated valuation (private).

11 Biggest Supply Chain Management Companies in the World

11. E2open Parent Holdings, Inc. (NYSE:ETWO)

Market Cap as of February 7: $1.94 Billion

E2open Parent Holdings, Inc. (NYSE:ETWO) is a cloud-based supply chain technology and solutions provider that helps companies manage their supply chain operations. It offers a suite of integrated solutions that enable visibility, collaboration, and intelligence across the entire supply chain. E2open Parent Holdings, Inc. (NYSE:ETWO) provides support for supply chain processes such as supply chain planning, order and inventory management, transportation management, and supplier management and collaboration. It also provides analytics and visibility into the end-to-end supply chain, offering insights into customer demand, inventory levels, and logistics costs. E2open Parent Holdings, Inc. (NYSE:ETWO) is one of the biggest supply chain management companies in the world and is valued at $1.94 billion, as of February 7.

Some of the biggest supply chain management companies in the world that are driving the industry include International Business Machines Corporation (NYSE:IBM), SAP SE (NYSE:SAP), and Oracle Corporation (NASDAQ:ORCL).

10. Infor

Annual Revenue (2021): $3.2 Billion

Infor is a leading enterprise software company that provides a wide range of business applications and cloud-based services. The company was founded in 2002 and has since grown to become one of the biggest supply chain management companies in the world. Infor’s suite of products and services covers a wide range of industries and use cases. These include cloud-based enterprise resource planning (ERP) solutions, customer relationship management (CRM) software, analytics, industry-specific applications, and supply chain management. In fiscal 2021, the company reported a record annual revenue of $3.2 billion.

9. Kinaxis Inc. (OTC:KXSCF)

Market Cap as of February 7: $3.40 Billion

Kinaxis Inc. (OTC:KXSCF) is a Canadian company that provides cloud–based supply chain management solutions. It is a leader in the space, with its RapidResponse platform helping companies to optimize their supply chains and improve their performance. The platform enables end–to–end planning, scheduling and analytics capabilities, as well as real–time collaboration, to help companies make better decisions faster. As of February 7, Kinaxis Inc. (OTC:KXSCF) is worth $3.40 billion on the open market and is ranked among the biggest supply chain management companies in the world.

8. Coupa Software Incorporated (NASDAQ:COUP)

Market Cap as of February 7: $6.04 Billion

Coupa Software Incorporated (NASDAQ:COUP) offers a cloud-based platform that provides businesses with the ability to automate and manage their enterprise spend. Its solutions enable customers to gain greater control and visibility over their spend, reduce costs, and improve compliance and security. The company’s supply chain management platform’s capabilities include supplier onboarding and performance management, spend analytics, purchase order management, and supplier risk management. Coupa Software Incorporated (NASDAQ:COUP) enables customers to source, manage, and pay for goods and services from suppliers around the world. This helps customers reduce costs, improve compliance, and ensure the security of their supply chain. Coupa Software Incorporated (NASDAQ:COUP) is one of the biggest supply chain management companies in the world, valued at $6.04 billion as of February 7.

7. Descartes Systems Group (NASDAQ:DSGX)

Market Cap as of February 7: $6.52 Billion

Descartes Systems Group (NASDAQ:DSGX) is a global leader in providing supply chain management solutions to businesses of all sizes. It offers a variety of services to help companies optimize their supply chain operations and improve customer service. With its cloud-based solutions, Descartes Systems Group (NASDAQ:DSGX) helps businesses reduce costs, increase efficiencies and improve visibility throughout the supply chain. Its solutions include warehouse management, transportation management, logistics resource management, and global trade compliance. Through its suite of solutions, Descartes Systems Group (NASDAQ:DSGX) helps customers maximize their supply chain performance and make more informed decisions. It is one of the biggest supply chain management companies in the world, worth $6.52 billion as of February 7.

6. Blue Yonder

Estimated Valuation (2021): $8.5 Billion

Blue Yonder is a leading provider of AI-powered supply chain solutions. Utilizing machine learning and predictive analytics, the company’s solutions enable businesses to optimize and automate their supply chain operations and maximize customer satisfaction. Their offerings include demand forecasting, inventory optimization, replenishment planning, and more. The company has an estimated valuation of $8.5 billion, as of 2021, and has raised $1.7 billion over two funding rounds. Blue Yonder is one of the biggest supply chain management companies in the world.

While Blue Yonder is one of the world’s biggest private supply chain management companies, some of the biggest public supply chain management companies in the world include International Business Machines Corporation (NYSE:IBM), SAP SE (NYSE:SAP), and Oracle Corporation (NASDAQ:ORCL).

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