Verdantix Says That The Supply Chain Stewardship And Responsible Sourcing Market Is Immature But Poised For Global Growth
London, September 30, 2015. A fast-growing but fragmented market for supply chain compliance and responsible sourcing solutions has emerged over the last 3 years according to a new report from independent research firm Verdantix. Based on an analysis of 26 suppliers of supply chain stewardship solutions, the study finds that not all market offerings are currently succeeding even as some vendors are growing their revenues at more than 50% a year.
“The supply chain stewardship market has all the hallmarks of an immature segment” commented Jordan Nadian, Verdantix Industry Analyst and author of the report. “Customers are confused about which vendors are best placed to improve the environmental, social, human rights and safety compliance of their suppliers. Quite often corporations are unsure whether sourcing, product compliance, IT or risk managers should be responsible for getting results. But with the conflict minerals rule in the US gaining traction and a potential copycat rule in Europe, this market will continue to grow.”
The report, ‘Smart Innovators: Supply Chain Stewardship Solutions’, segments the market into four groups of innovative suppliers:
Software vendors with EH&S and risk management capabilities such as cr360, Enablon, Gensuite, Intelex and Rivo Software
Supply chain platforms like Achilles and Aravo with broad supplier management capabilities
Product stewardship and product sustainability vendors with regulatory expertise such as 3E Company, thinkstep and UL The Wercs
Specialist collaboration platforms like AMEE, EcoVadis and Source Intelligence with purpose built supply chain stewardship business models
“The conflict minerals rule in the US and high profile NGO campaigns against big brands have put the spotlight on the working conditions, human rights records and environmental compliance of suppliers in developing economies” commented David Metcalfe, Verdantix CEO. “The challenge for the supply chain stewardship market at the moment is that ownership of these issues within corporations is unclear and the best solution to the problem is always up for debate. This is making it hard for vendors to execute on their growth strategies. Medium-term prospects are good but suppliers need to ensure what they offer is aligned with the immediate needs of cash-strapped customers.”
Suppliers named by Verdantix as supply chain stewardship smart innovators are 2degrees, 3E Company, Achilles, Actio, AMEE, Anthesis, Aravo, Assent Compliance, BOMCheck, ChainPoint, CMO, cr360, CSRware, Ecodesk, EcoVadis, Enablon, Foresite US, Gensuite, Intelex, MetricStream, Rivo Software, SAP, Sedex, Source Intelligence, thinkstep and UL The Wercs.