Global Distribution Software Market 2017-2021
About Distribution Software
Distribution software provides broad visibility across the entire organization, and delivers unparalleled control in managing thousands of transactions, suppliers, and customers while simultaneously tracking millions of inventory items. This software is largely adopted across many distribution industries, including auto and truck parts, building materials, chemical supplies, electrical goods, electronics, food and beverage, fasteners, general wholesale, industrial machinery, irrigation systems and parts, janitorial and sanitation, medical and dental supplies, paper and packaging materials, restaurant equipment and supplies, and safety products.
Technavio’s analysts forecast the global distribution software market to grow at a CAGR of 9.50% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global distribution software market for 2017-2021. To calculate the market size, the report considers the revenue generated from distribution services and vendors providing extended operational support (such as data loading, data cleansing, exception handling, and monitoring) on an ongoing basis.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Distribution Software Market 2017-2021
Technavio recognizes the following companies as the key players in the global distribution software market: SAP, Oracle, Sage Group, Infor, and JDA Software Group.
Other Prominent Vendors in the market are: AccSoft Business Solutions, Acumatica, ADS Solutions, Agnitech, Blue Link Associates, Cadre Software, Cloud 9 ERP Solutions, Data-Basics, DDI System, Distribution One, ECOUNT, Epicor, Exact, Fasttrack Solutions, Fishbowl, FlowTrac, inFlow Inventory Software, JCurve Solutions, Syncron, SYSPRO, and Vormittag Associates.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is introduction of distribution mobile apps. Transitioning of businesses to mobile technology will not only give enterprises more accurate information but save hundreds of hours. It eliminates redundant data entry on delivery receipts, physical inventory checks, and retail evaluations by switching to mobile apps. The increasing adoption of mobile devices for professional purposes is a major trend in the global distribution software market.”
According to the report, one driver in market is vendor’s pricing strategies. To thrive in a competitive market environment, the software vendors are adopting customer-centric pricing strategies enabled by advances in technology. A growing number of the distribution software vendors are adopting value-based pricing models that focus on the customer's needs and perception of value. Software pricing and delivery are based on the software vendor’s ability to offer value for the customer while clearly differentiating the features of the software solution. The customer considers certain economic and market factors before adopting the distribution software. The market factors that the customer focuses on are ROI, constrained IT budgets, and the ability to opt for free models. The ability to accommodate varying customer pricing preferences and budgets is imperative for the vendors.
Further, the report states that one challenges in market is high implementation and maintenance cost. The high cost of deploying the on-premises distribution software is one of the major challenges in the market for SMEs. The price of the distribution software includes the cost of software licensing, system design and customization, implementation, training, and maintenance. An organization that has purchased the software requires IT staff with the relevant skill set for successful implementation of the software. Implementation of the distribution software requires self-assessment, planning, adequate funding, clear vision, and cooperation at all managerial levels. Enterprises also need to train their employees to use the application efficiently. Post implementation, the software requires continuous upgradation to keep up with the market trends. Thus, these factors lead to an increased cost of implementation of the distribution software, which adversely affects its adoption among the end-users.
SAP, Oracle, Sage Group, Infor, JDA Software Group, AccSoft Business Solutions, Acumatica, ADS Solutions, Agnitech, Blue Link Associates, Cadre Software, Cloud 9 ERP Solutions, Data-Basics, DDI System, Distribution One, ECOUNT, Epicor, Exact, Fasttrack Solutions, Fishbowl, FlowTrac, inFlow Inventory Software, JCurve Solutions, Syncron, SYSPRO, and Vormittag Associates.