June 25, 2024
Supply Chain Risk Management

Supply Chain Risk Management to Drive Operational Efficiencies and Reduce Transportation Costs

The Supply Chain Risk Management Market is estimated to be valued at US$ 2.22 Bn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Supply chain risk management involves identifying potential sources of disruption within the supply chain and developing mitigation strategies. Supply chain risks include delays, damage or loss of shipments, natural disasters, trade policy changes, cyber threats, and other unforeseen events that may negatively impact the availability or quality of goods and services. Supply chain risk management solutions help companies track physical shipments in real-time using sensors and monitors environmental conditions like temperature, humidity, and vibration. They also assess supply chain vulnerabilities and model disruptions to develop contingency plans. This improves supply chain visibility, compliance, and operational resilience for various industries including automotive, food and beverage, healthcare, retail and e-commerce.

Market Dynamics:

Two main drivers are augmenting growth of the supply chain risk management market. First, increasing complexities in global supply chains have made them more susceptible to disruptions. With rising trade volumes and outsourcing of manufacturing globally, it is challenging for companies to trace goods movement across multi-tiered supplier networks spanning different geographies and regulatory jurisdictions. Supply chain risk management solutions enable end-to-end visibility and monitoring of shipments to mitigate vulnerabilities. Second, companies aim to optimize inventory levels and reduce costs of maintaining stocks and storage facilities. Real-time tracking of shipments allows businesses to avoid stock-outs and carry only essential inventory. It also helps identify problems early and resolve issues before they escalate and impact downstream supply and sales.

Segment Analysis

The supply chain risk management market is dominated by the software segment owing to its advantages like improved visibility, real-time tracking, optimization of processes, and data-driven decision making. The software provides solutions such as risk identification, monitoring, interruption impact analysis, contingency strategies development, and supplier risk assessment among others.

PEST Analysis

Political: Regulations around data privacy and security are pushing organizations to adopt supply chain risk management solutions.
Economic: In an uncertain economy, companies are investing in risk management to mitigate disruptions and ensure business continuity.
Social: Rising customer expectations around transparency and responsibility are compelling brands to strengthen supplier oversight.
Technological: Advancements in AI, IoT, analytics are enhancing risk detection capabilities and helping simulate supply chain scenarios.

Key Takeaways

The global Supply Chain Risk Management Market Share is expected to witness high growth at a CAGR of 11% over the forecast period, driven by increasing supply chain complexities due to globalization of operations and changing trade policies.

Regionally, North America dominates due to stringent regulations and higher technology adoption. Europe holds a significant share attributed to presence of major automotive manufacturers with complex supply networks. Meanwhile, Asia Pacific is expected to grow at the fastest pace led by China, India with their expanding manufacturing industries.

Key players operating in the supply chain risk management market are IBM, Emerson, Oracle, NXP Semiconductors, Testo, ORBCOMM, Sensitech, ELPRO, Rotronic, Monnit, Cold Chain Technologies, LogTag Recorders, Dickson, Signatrol, Hanwell Solutions, Controlant, Roambee, Omega Compliance, Tagbox Solutions, C2A Security, SafeTraces, Tive, and Altana. They offer capabilities including risk detection, monitoring, scenario analysis, and supplier risk assessment to ensure resilience across supply chains.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it