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The Fast Growing Multibillion-Dollar Supply Chain Software Market No One Has Heard Of

3 min read

By Lark Begin

Businesses haven’t all been affected equally by the pandemic.

Some businesses have actually benefited from Covid-19, which began to significantly impact the United States in early 2020.

One such industry is supply chain software. This multi-billion dollar market has grown at an unprecedented double-digit rate and is only just getting started. So how and why is this happening?

Supply Chain Collaboration Network (SCCN)

Covid-19 ravaged the retail sector and initially drove the demand for goods and materials down. As economies roared back to life, supply chains (SC) struggled, and continue to struggle, to handle the backlog.

Turns out, a public cloud architecture, known as a Supply Chain Collaboration Network (SCCN), is the solution. While it may seem confusing for those outside of the industry, it’s a software solution built collaboratively and shared across enterprises by a community of supply chain partners.

Research suggests that in terms of size, the SCCN market is over $3 billion. Over the next five years, that figure is projected to expand at a double-digit rate. It’s important to note that the SCCN market is in no way new. This market has existed for a long time, and its growth involves rebranding existing markets.

SCCN’s is comprised of Electronic Data Interchange (EDI) Value-Added Networks. They feature solutions intended to:


Why Rebranding?

Why combine existing solutions under a newly formed market labeled SCCN? The common piece to these differing solutions is that they’re all network solutions. However, networks come with their distinct advantages, including:

Onboarding and Communication Management

Both costly and time-consuming, integrating trading partner systems can slow you down. However, when trading partners with goods orservices to sell are on the network, buyers can join the network. This method dramatically diminishes the IT component required to facilitate collaboration.

Partner Management

When you’re potentially going into business with someone, there are things you want to know about them. Sellers can enter their information and permit potential buyers to view said information. This process significantly decreases the time it takes to go into business together.

Third-Party Data

Forecast data accuracy can be significantly improved with third-party data sharing from industries and governments. In addition, when the data exists on the network, it’s easier and cheaper to access.


Public cloud TMS are great examples of how network analytics benefits the SCCN. For instance, shippers tender to a carrier for lanes in a TMS. Carriers respond and let the shipper know if they can or cannot accept the load and alert them of the price for the move.

Networks established with the appropriate permission allow for information about the lane to be aggregated and anonymized. Shippers are made aware of the average prices and where that price places them on the aggregate.

System of Records

SCCN solutions can act as a source of accurate records regarding transactions that occurred via their network. Moreover, it eradicates the likelihood of arguments as everything’s logged for reference later need be.


SCCN’s Promote Agility in the Supply Chain

The pandemic drove board rooms to discuss supply chain management. They identified agility as the most significant area where companies needed to use SCCN to improve their output.

With SCCN’s you can onboard new partners faster. In addition, you can get greater visibility of risks and events that can become disruptive to your business before they happen, allowing businesses to have a plan. Finally, accessibility to information means planning is easier than ever.

There’s a reason SCCN’s exploded over the last two years, and it’s only going to keep getting bigger and bigger as economies bounce back and businesses continue to deal with the immense backlog in supply chains.

About the Author


Lark Begin is a digital marketer from Ottawa, Canada. Lark is an SEO and content writing specialist who has published over 4700+ articles and blogs online and has helped hundreds of companies grow their content library. In her free time, she enjoys being in nature with her family, fishing and dancing.

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