Mercado | Insights | The relevance of SaaS in the supply chain

The relevance of SaaS in the supply chain

Article

The relevance of SaaS in the supply chain

Publish Date: December 12, 2022
Author: Johnny Jones
The rise in Software as a Service (SaaS) has dominated the technology industry for the past decade.
As businesses and innovators looked to replace the clunky, legacy software systems of old — from Oracle to SAP — its adoption has literally been industry-defining. We’ve seen this not only in the consumer world (with applications like Google Drive and Dropbox), but also for business-to-business (most notably with the development of Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) systems).

SaaS technology, also known as web-based, on-demand, or hosted software, is the method of delivering applications over a web browser as a service instead of installing and maintaining software on a single device’s harddrive. The move has led to cloud-computing dominating the development of faster, on-demand solutions to help address challenges that would otherwise have remained unsolved.

Benefits of SaaS technology are plentiful, including low setup costs, accessibility, ease of use, automatic updates, scalability, and more. According to a 2019 McKinsey & Company report, tech industry analysts are still predicting huge growth in the SaaS market, nearing a value of $200 billion by 2024.

Even with this introduction of useful technology however, the supply chain industry is still looking into its rear view mirror. Unfortunately, the vast majority of businesses remain stuck in their ways, continuing to rely on email and spreadsheets to manage an industry estimated to be worth $2.8T.

Created in the 1980s, Excel and email have their place, however they were never designed to manage the complexities that the import supply chain brings. An extra zero in a spreadsheet can be the difference between manufacturing 500 units and 5,000; trawling for hours through an email inbox to prove a change request was sent can quickly add up when you multiply it by the number of orders sent every season.

It doesn’t matter how great of an organizational system you have, keeping track of hundreds of purchase orders across dozens of suppliers isn’t an easy feat when you’re doing it manually. To make things worse, the way importers are doing things currently actually hurts their supply chain by increasing risk of human error, negatively impacting and limiting sales, and making for an disgruntled and unaligned workforce.

I can honestly say that the biggest opportunity today in the import supply chain is gaining complete visibility and control over the planning, buying, and manufacturing of products — well before they are shipped. To do this, we need greater investment in SaaS technologies that can provide true import order management capabilities.

Mercado’s SaaS platform connects importers with their suppliers in a shared environment for executing, managing, and shipping orders. It's digital, networked, and automated, giving importers real-time access to live order data across the entire planning, buying, production and shipping process. Every order placed in Mercado starts with a digital PO that is created, transmitted, and received completely within the platform. From that moment on, every update, change, chargeback, and communication stays with the order and is shared with the network.

Escape email hell and discover how much easier importing can be when you and your suppliers are on the same page thanks to Saas technology in the supply chain.
Mercado | Meet the Team - Johnny Jones, VP Sales

About the author

Johnny Jones is the Vice President of Global Sales at Mercado Labs. Johnny has worked over 25 years for SaaS companies, such as Mcafee and Netsuite. He then started his own software company, Fieldaware, focused on B2B.

Find out how you can transform your purchasing, win with your logistics, improve supplier collaboration and gain actionable insights that you can trust - all with Mercado.
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