With increasing globalization, managing risks across widely dispersed supply chains has become a challenge for many industries. Supply chain risk management (SCRM) solutions help mitigate issues ranging from disruptions due to natural disasters to delays caused by geopolitical tensions. SCRM software tracks shipments, monitors supplier performance, and models “what if” scenarios to minimize supply interruptions. The global market has seen steady growth as more companies recognize the need to proactively reduce risks in their extended networks of producers, transporters, and distributors.
SCRM tools provide end-to-end visibility across multi-tier, multi-party supply networks. Modules for supplier audits, quality control, capacity planning, and demand forecasting help optimize operations and anticipate issues before they impact delivery schedules. Advanced analytics capabilities use AI and machine learning to identify trends and predict risks based on large volumes of operational and external data. Industries like automotive, aerospace, healthcare and electronics that depend on flawless coordination of components from around the world have been early adopters.
The global Supply Chain Risk Management Market is estimated to be valued at US$ 2.22 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
As global trade volumes increase, disruptive events like the COVID-19 pandemic highlight the need for robust risk assessment and contingency planning. Supply chain visibility is also a concern due to growing outsourcing and offshoring. SCRM solutions address these needs through features like supplier performance monitoring, risk simulation, and inventory level tracking across tiers. Adoption is growing in process manufacturing and discrete industries due to rising awareness of revenue and reputation risks from supply chain disruptions.
Porter’s Analysis
Threat of new entrants: Low barriers to entry due to availability of low cost cloud based solutions. However, established players enjoy economies of scale and strong brand loyalty.
Bargaining power of buyers: Moderate as buyers have various product options from different vendors. However, compliance requirements and focus on risk mitigation reduces substitutability.
Bargaining power of suppliers: Low as supply chain risk management solutions require technical expertise. Vendors rely on proprietary technology and data to deliver value added services.
Threat of new substitutes: Low as supply chain risk management solutions integrate data from across the value chain for holistic risk visibility and mitigation. No direct substitute offers similar functionalities.
Competitive rivalry: High due to presence of global and local players. Players differentiate through product innovation, comprehensive functionalities and customer focus.
Key Takeaways
The Global Supply Chain Risk Management Market Size is expected to witness high growth. The global Supply Chain Risk Management Market is estimated to be valued at US$ 2.22 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.
Regional analysis
North America dominates the market due to stringent regulations and early adoption of risk management solutions across industries. Asia Pacific is expected to exhibit fastest growth aided by increasing trade activities, growing ecommerce and focus on supply chain resilience in countries like China, India and Japan.
Key players
Key players operating in the Supply Chain Risk Management market are MetricStream, Resilience360, GEP, LogicManager, GSA Software AG, CURA Software Solutions, AcceleRate, Avetta LLC, Jaggaer, and DHL Resilience360. MetricStream offers SCM solutions to mitigate risks through monitoring, continuity and visibility capabilities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it