With four companies collectively controlling more than 80.0% of the inventory management software market, the high concentration makes negotiating with large suppliers more difficult because there is less competition from smaller providers. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Inventory Management Software in its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) April 26, 2015
Inventory management software has a buyer power score of 4.1 out of 5. This score reflects positive market conditions for buyers, including declining prices and moderately high negotiation power. The price inventory management software has been consistently declining during the three years to 2014. Also, lower input costs have benefited buyers, with suppliers passing down cost savings from the falling price of computers and peripheral equipment. Growing competition from new software developers, facilitated by low barriers to entry into the market, has also contributed to price declines. Furthermore, low price volatility over the past three years has allowed buyers to better plan financially for future expenditures. “Thus, buyers do not have to engage in long-term contracts to avoid sudden price hikes,” according to IBISWorld business research analyst Andrew Krabeepetcharat.
A wide variety of purchasing methods and types of inventory management software are available, which allow buyers by to choose a software package that best suits their needs. 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. “For buyers with larger inventories looking for greater efficiency, the software can be purchased on an on-premises basis, which allows them to customize the software and integrate it with existing IT systems and operations,” says Krabeepetcharat.
However, high market share concentration among suppliers hurts buyer power. With four companies (Microsoft, Oracle, IBM and EMC) collectively controlling more than 80.0% of the market, the high concentration makes negotiating with large suppliers more difficult because there is less competition from smaller providers. However, a rising number of smaller developers and the growing prevalence of freeware versions of the software have mitigated the effects of high market share concentration. Furthermore, the lack of substitutes for inventory management software also reduces buyer power by reducing buyers' ability to leverage alternatives during the negotiation process. For more information, visit IBISWorld’s Inventory Management Software procurement category market research report page.
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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 publishers and multiline vendors that offer a variety of other IT solutions. This report does not cover inventory accounting services.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
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.
