Download PDF
April 2018
Supply Chain Tech & Software
Sectorwatch
The supply chain software space saw a number of merger and acquisitions last year and this trend is also expected in 2018. This expectation is as a result of vendors continuously looking for ways to grow and keep up with the pace of new technology developments. Notable, this trend is driven by cloud-based vendors who have open API architecture that makes integrations easier and less costly.
Industry Trends:
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation
