Learn the Cost of Supply Chain Management Software
Please answer a few questions about your business needs to help our experts estimate the cost of your custom supply chain software quicker.
Thank you for your request!
We will analyze your case and get back to you within a business day to share a ballpark estimate.
In the meantime, would you like to learn more about ScienceSoft?
- Project success no matter what: learn how we make good on our mission.
- 4,000 successful projects: explore our portfolio.
- 1,300+ incredible clients: read what they say.
How Much Does Supply Chain Management Software Cost?
From ScienceSoft's experience, developing custom supply chain management software of average complexity may cost around $200,000–$600,000, while engineering a large-scale system featuring IoT and advanced analytics may require $600,000–$1,500,000+.
Major factors impacting supply chain management software cost
- The number of processes to automate (supply chain planning, inventory management, procurement management, etc.).
- Functional complexity, including the need to implement features powered by advanced technology (e.g., AI-supported inventory optimization, IoT-based shipment tracking, or AR-assisted order picking).
- Performance, scalability, availability, and security requirements.
- Regulatory compliance requirements (e.g., FDA requirements for food and drug supply chains).
- The number and complexity of integrations with other software (e.g., ERP, inventory counting systems).
- The chosen platforms for SCM user apps (web, mobile, desktop).
- The chosen development sourcing model (all in-house, partial outsourcing, full outsourcing).
Ways to Reduce SCM Software Development Cost
In ScienceSoft’s digital SCM projects, we apply the following proven practices to reduce the final development price without compromising solution quality:
- Collaborating with client-side stakeholders and SCM business users to define optimal SCM functionality based on real business needs and avoid investing in irrelevant features. It’s one benefit of custom development compared to using OOTB products where you end up paying for unnecessary features bundled with the ones you need.
- Reusing business logic components across multiple SCM features to avoid unnecessary development efforts and enhance software integrity. We rely on modular SOA and microservices architectures that allow for easy logic decoupling and reuse.
- Using ready-made logic building blocks, UI components, and integration solutions to reduce the share of costly custom code.
- Leveraging open-source services, frameworks, and libraries where feasible to minimize fees for third-party components.
- Setting different availability and performance targets for each SCM module and rightsizing infrastructure resources based on module-specific needs (e.g., a real-time shipment tracking module requires high availability and low latency, while a supplier contract management module has lower performance requirements).
- Applying mature budget management and risk management practices to quickly address emerging risks and prevent budget overruns.
- Designing intuitive user interfaces and providing in-app user tutorials to reduce costs of employee training and post-launch support.
Check out our dedicated page for more insights into software cost estimation and optimization best practices.
Supply Chain Management Software Market Insights
- The global market for SCM software is anticipated to hit $43.52 billion by 2029, growing at a CAGR of 11.39%. The segment of procurement and sourcing solutions led the SCM software market in 2024, representing around 36% of the market share.
- According to Gartner, 50%+ of businesses have already adopted digital SCM software to enhance operational inefficiency and mitigate risks of supply chain disruptions. Gartner names SCM software the fastest-growing enterprise application segment.
- In recent years, companies have been increasingly deploying AI/ML solutions for demand planning and procurement. According to EY, in the field of supply chain sustainability management alone, AI adoption currently exceeds 60%.
- A recent study by PwC found that, as of 2023, 46% of companies have fully adopted IoT, and 23% — fully adopted blockchain in their supply chain management operations.
- Despite the benefits of the cloud for supply chain operations, the segment of on-premises SCM solutions still held a market share of 60% in 2024, with security, accessibility, and compliance concerns being the top arguments against cloud-based SCM software.