ERP sales predicted to boom following coronavirus shocks -【AGV, Aviation Logistic, Supply Chain, Warehouse, ERP system, Logistic Management 】


Logistics Manager | Published Tuesday 17 March 2020 9:10 am


The impact of Covid-19 will see global manufacturer spending on ERP hit $14 billion by 2024, according to ABI Research, with supply chains investing in risk analysis to prepare for further shocks.


Michael Larner, principal analyst at ABI Research, said that in the short-term: “Initially, plant managers and factory owners will be looking to secure supplies and be getting an appreciation of constraints further up the supply chain plus how much influence they have on their suppliers.”

In the longer term, ABI Research advises, manufacturers will need to conduct an extensive due diligence process as they need to understand their risk exposure, including the operations of their supplier’s suppliers too.


“To mitigate supply chain risks, manufacturers should not only not source components from a single supplier but also, as Covid-19 has highlighted, shouldn’t source from suppliers in a single location,” Larner said.


As a result ABI Research is predicting that the software industry will be a major beneficiary to the pandemic with see global manufacturer spending on ERP hitting $14 billion by 2024.


“Supply chain orchestration requires software to be more than a system of record and provide risk analysis and run simulations, enabling manufacturers to understand and prepare for supply chain shocks,” he said.


The April edition of Logistics Manager is out on 30 March, and includes a Supply Chain Risk Management special looking at the impact of coronavirus on the sector.