Supply Chain as a Service (SCaaS) Market Report

A rising number of e-commerce platforms give consumers a wide range of options. They may compare products and return them if they do not meet their expectations. As a result, there is a need for supply chain as a service since it creates a stress on companies to satisfy consumers' growing expectations. The retail industry is rapidly expanding, requiring the administration of a continuous supply of items, transportation, distribution, and warehousing, among other things. As a result, supply chain as a service plays a critical role in simplifying all of the complicated procedures in the retail industry. Furthermore, as a result of globalisation, the number of distributors has increased, and the need for strategic planning fuels market growth. E-commerce businesses can boost efficiency, lower operational costs, and concentrate on core strengths by delegating these tasks to expert service providers. This shift is caused by the necessity for flexibility and the growing intricacy of worldwide supply networks in the rapidly evolving digital market.

Perhaps the most essential issue for a viable SCaaS business model is data transparency. Increasingly complex networks, supply chain resilience, designing an end-to-end system are some of the challenges that the supply chain as a service (SCaaS) market is experiencing. The integration of SCaaS solutions with current systems can be difficult because of different technological standards and outdated infrastructure. Furthermore, the risk of substantial financial and reputational damage is posed by the management and protection of sensitive supply chain data. Moreover, maintaining uniform service delivery in various geographic areas increases complexity, impacting market growth and acceptance. These factors combined impede the successful growth and efficiency of SCaaS solutions in the marketplace.

Acquisitions in SCaaS are helping to build the needed market growth by building skills, broadening services and increasing customer base for purchased businesses. In this manner, the acquisitions afford companies opportunity to incorporate hi-tech in their operations, penetrate new markets of customers, and synergistically operate to enhance functionality. In January 2023 GEFCO brand transitioned to CEVA Logistics and as part of the synergy they implemented CEVA Logistics Finished Vehicle Logistics (FVL). It was done this year after the Group CMA CGM purchased SOCOTREL, the French vehicle logistics expert in July 2022. In addition, in December 2022, the US-based FedEx Corp introduced FedEx Consolidated Returns aimed at giving merchants in e-commerce an affordable and simple solution to provide customers with returns.

In terms of revenue share, the North American regional market dominated the global industry and is likely to maintain its dominance during the forecast period. The increased use of technology across numerous industries, such as manufacturing, retail, and healthcare, can be contributed to the expansion. Additionally, increased demand for cloud-based solutions among small and medium-sized businesses is expected to boost regional market expansion. The European market is expected to grow more slowly than other markets throughout forecast period. This might be ascribed to factors such as the region's high investment requirements and tight regulations. Over the forecast period, the Asia Pacific and Middle East and Africa region is anticipated to develop faster than other regions. This is due to reasons such as rising disposable income, increased investment by large enterprises, and increased acceptance of cloud-based solutions across multiple industries.