Logistics Execution System (LES) Market, by Solution (Inventory Management, Warehouse Management and Transportation Management), by Product Type (Services [Managed Services and Consultation] and Software), Enterprise Size (SME and Large Organizations), by End-use Industry (3rd Party Logistics, Manufacturing , Healthcare, E-commerce, Food & Beverages and Others) and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2019–2027
The Logistics Execution System (LES) is a major component of supply chain management and comes under the umbrella of Digital Enterprise. The LES software tool allows an administrator to monitor and update the entire flow of materials in real-time. Moreover, logistic execution software also helps the administrator to efficiently manage the information of materials and processes in all stages of the supply chain, from procuring raw material to delivering the finished products. Furthermore, this system is also capable of monitoring the material which is in process along with the material in warehouses, thus improving inventory management and reducing the operational costs. Owing to this, companies are rapidly adopting LES systems which is expected to drive the market growth. For instance, according to Coherent Market Insights, adoption of digital Supply Chain Management tools such as LES reduces operational costs by 30%.
Furthermore, various companies are transforming their supply chain by developing their own logistic execution system as per their requirement. Every organization has unique LES requirements depending on their operational workflow, which will also help the LES market to grow during the forecast period. For instance, Mahindra Logistics Ltd has developed their own in-house Logistics Execution System called Mahindra Integrated Logistics Execution System (MILES) based on Oracle Transportation Management (OTM) which helps them to manage their logistics business effectively.
Technological advancements such as Internet of Things (IoT) and machine intelligence helps to collect real-time data for increased efficiency
With the evolving concept of Cloud Manufacturing, logistics based on cloud is also gaining momentum. In cloud based logistics, extensive interaction is required between the cloud platform and physical resources, and this interaction is facilitated by IoT based sensors. Owing to this, companies operating in logistics execution system (LES) market are focusing on developing IoT compliant LES which help in providing real time physical parameters, from processes to the cloud. As a result, the market for logistic execution system is expected to grow during the forecast period. For instance, company named SILVEO provides logistics execution solutions based on their IoT platform, Sprint2IoT.
Machine intelligence enables machines to learn and independently make decisions based on real-time data gathered from IoT sensor network. Companies are developing smart LES with application of artificial intelligence which has certain intelligent capabilities that help LES achieve real-time analysis and independent decision making. For instance, SAP’s C/4 HANA has new Artificial Intelligence capabilities to deploy intelligent decision making capabilities to the system.
High Potential in Emerging Economies of Asia Pacific Region across Transportation and Logistics Industry
On the basis of region, the global logistics execution system market is segmented into North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.
Asia Pacific region is estimated to hold a dominant position in the global logistics execution system market in 2019, and is projected to retain its dominance throughout the forecast period. This is due to growing industrialization and urbanization in emerging economies in Asia Pacific such as China and India which is driven by availability of low-wage labor and low manufacturing costs. The highest share of Asia Pacific in global logistics market is attributed to the above factors, and the regional market is followed by North America and Europe. The expanding logistics market in Asia Pacific poses a high growth potential for the logistics execution system market in the region. For instance, according to Indian Brand Equity Form (IBEF), in 2018, the Indian logistic sector was valued at US$ 160 billion and is expected to touch US$ 215 billion in the next two years according to the Economic Survey 2017-18.
Logistics Execution System Market Taxonomy
- On the basis of Solution, the global logistics execution system market is segmented into:
- Inventory Management
- Warehouse Management
- Transportation Management
- On the basis of Product Type, the global logistics execution system market is segmented into:
- Managed Services
- Consulting Services
- On the basis of Enterprise Size, the global logistics execution system market is segmented into:
- Large Organizations
- On the basis of End-use Industry, the global logistics execution system market is segmented into:
- 3rd Party Logistics
- Food & Beverages
- On the basis of Region, the global logistics execution system market is segmented into:
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Major players operating in the global logistics execution system market are SAP, Dassault Systems, Oracle, ITC Infotech, CCP Global, SBP Consulting, Aimtec, SILVEO, Westernacher Consulting, INCONSO GmbH, Neusoft Corp, CMAC Inc. and TRIACOS.
Coherent Market Insights is a global market intelligence and consulting organization focused on assisting our plethora of clients achieve transformational growth by helping them make critical business decisions.
What we provide:
- Customized Market Research Services
- Industry Analysis Services
- Business Consulting Services
- Market Intelligence Services
- Long term Engagement Model
- Country Specific Analysis
Address: 1001 4th ave, #3200 Seattle, WA 98154, U.S.