Growing competition and the rising prevalence of software as a service (SaaS) models will continue to push inventory management software prices down.
Los Angeles, CA (PRWEB) May 11, 2014
Inventory management software has a buyer power score of 3.7 out of 5.0. The score reflects positive pricing and market trends that provide buyers with low prices and some negotiating power. The market for inventory management software poses some disadvantage to buyers via moderate switching costs, high market share concentration and a lack of substitutes that would otherwise give suppliers control over pricing. “However, a substantial variety of purchasing methods and types of inventory management software benefits buyers by allowing them to choose the software package that best suits their needs,” says IBISWorld business research analyst Andrew Krabeepetcharat.
Over the past three years, technological trends have led to growing demand for inventory management software. As private investment in computers and software rises, more businesses in the manufacturing, retail and wholesale trades will demand more tools for tracking inventory levels, orders, sales and deliveries. Also, with the recovering economy, corporate profit has risen and given companies the ability to invest in capital expenditures such as inventory management software. During the same period, the percentage of services conducted online grew quickly, prompting increasing popularity for cloud-based inventory management software. “Although these factors have boosted the demand for inventory management software, intense competition among the largest vendors continues to push prices down,” says Krabeepetcharat.
Price volatility has been low during the past three years. Consequently, buyers do not have to engage in long-term contracts to avoid price hikes. Also, the low price volatility over the period allows buyers of inventory management software to better plan financially for future expenditures. Additionally, buyers that do not wish to enter long-term contracts can opt for cloud-based subscription software, which spreads the cost of the capital investment over a period of time. However, buyers with larger inventories may find it more efficient to purchase the software on an on-premises basis, which allows them to customize the software and integrate it with existing IT systems and operations. For more information, visit IBISWorld’s Inventory Management Software procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of inventory management software. Inventory management software allows businesses to track and manage inventory. Inventory management software can be run through the cloud or in-house. Suppliers include software developers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.