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  • Zed Wong

Supply Chain Digitalisation – Drivers and Benefits

Updated: Oct 6, 2023

What is Supply Chain Management (SCM) Software as a Service (SaaS)?

Supply Chain Management (SCM) Software as a Service (SaaS) refers to a cloud-based supply chain management solution that provides businesses with a platform to manage aspects of their supply chain, from planning and forecasting to transportation and logistics.

Crucially, the deployment of SaaS SCMs in the cloud, contrasted with on-premise SCM systems, alleviates businesses from the responsibility of managing data centres and in-house developments just to keep their SCM systems running.



Who’s adopting SCM SaaS?

The increasing competition in rapidly developing markets worldwide is also incentivising businesses to adopt new technologies to stay ahead of the curve. Particularly for Small and Medium Enterprises (SMEs) that form the lifeblood of our economies, SaaS solutions that can scale affordably provide an answer for organisational needs.


For the ambitious SME carving out its own space in the industry, digitalised solutions provide them breathing space competing against the long established and optimised supply chain systems of corporate giants in their industries.


For the legacy organisation, digitalisation provides a way of optimising fossilised supply chain management systems which are failing to keep up with the organisation’s scale and industrial developments.


— The State Of Asia’s Supply Chain Digitalization

Zooming in to where we are, Asia is no exception to the increasing adoption of SaaS platforms for supply chain management solutions. A recent study1 estimates that the Asia Pacific SaaS-based SCM Market is expected to witness market growth of 13.5% Compounded Annual Growth Rate (CAGR) from 2022 to 2028. This has been catalysed by the increasing adoption of cloud computing in Southeast Asia which is providing businesses with flexible and scalable platforms to host their SCM applications.



Why do companies adopt SCM SaaS?

A study2 by Oracle found that businesses that rely primarily on cloud-based solutions see on average a 30-50% reduction in cost, following their transition from on-premise solutions.


This is because cloud-based solutions are enabling businesses to improve their efficiency, reduce their costs, and increase their agility. By providing businesses in Asia a meaningful way to differentiate themselves through improved visibility, communication and data utilisation, SaaS SCMs are providing standout value to both price-sensitive SMEs and legacy giants in the region.


Successful case studies of SaaS adoption are now becoming increasingly commonplace in Asia as industries across industries take the digital leap. In the absence of SaaS solutions, these businesses would have been required to commit significant resources toward acquiring and developing its own on premise SCM system. This represents an opportunity cost to the business’s real focus. Conversely, the outsourcing of SCM onto a SaaS leaves businesses free to channel limited resources where it is needed most.



Conclusion: Choosing The Right Provider For Your Supply Chain

While the advantages of SCM SaaS are becoming evident, organisations looking to adopt it will still have to answer a crucial question:

“Who Is The Right SCM Provider For My Business?”


As a major player in the global supply chain, Toyota Tsusho developed BriVge as its answer to the question. As a cloud based SCM platform, BriVge aims to bring together the best of Toyota Tsusho's deep domain expertise in supply chain management and digitalisation advancements in Asia for the benefit of your business in Asia’s rapidly growing markets.


This article has highlighted the overarching financial and operational incentives for businesses looking toward SaaS adoption in their SCMs. Despite this, we understand that many businesses do still face roadblocks and questions in their digitalisation choices, particularly with regards to autonomy, security, and cost. BriVge is prepared to help your business answer these questions.


Digitalisation can be daunting, but it does not have to be.


From Order Management to Cargo Tracking, BriVge has accumulated the needs of businesses across the region and developed solutions for them. We would love to share these with you. Learn more about our services or schedule a free demo today.


We hope that this article has been helpful to you! Thank you for reading! If you would like to be kept up to date with developments in Asia’s SCM landscape, do check out our resources for more such articles!


Sources

1 https://www.alliedmarketresearch.com/press-release/saas-based-scm-market.html

2 https://www.forbes.com/sites/quora/2019/12/20/how-much-money-can-businesses-save-by-moving-to-the-cloud/?sh=41106733ef43

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