Global Procurement Software as a Segment of Global SCM Market
The procurement software is the leading segment of the SCM market, and it accounted for nearly 32% of its market share in 2014. The market for the procurement software is growing which will improve the market share in the upcoming three to four years. The others segments accounting for 68% that include warehouse management services (WMS),Source: Technavio ResearchAccording to the latest Technavio report, the global procurement software market is witnessing a significant growth phase, and it is likely to post a CAGR of over 10% by 2019. The need for controlling and managing all the resources in the supply chain drives the market. Also, the demand for improved visibility in the selection of the resources and suppliers fosters its adoption in organizations.As a result of the increasing costs in various operations of the supply chain, organizations are increasingly adopting automated procurement systems instead of recruiting procurement professionals.
Key trends inducing growth into the global procurement market
It has been observed that medium-sized enterprises, with annual revenues in the range US$100-750 million, are most active in the implementation of procurement software and are inclined toward using the cloud-based procurement software.Large enterprises continue to invest in procurement applications while the trend suggests that medium-sized enterprises are implementing procurement software for the first time. The increase in the demand for cloud-based procurement software is a positive trend making an impact on the market. One of the growth drivers in the market is the need to consolidate and enhance the purchasing process. Procurement software allows the purchasing department in an organization to better leverage its purchasing power.Geographical segmentation of the procurement marketAmericasEMEAAPACThe global procurement software market is expanding, and companies are ready to invest in software applications. In terms of revenue contribution, the Americas continues to hold the largest share of the market.Leading market vendors for procurement softwareBaswareOracleSAPSciQuestBirchStreet Systems, Capgemini, Coupa, Elcom, Epicor, jCatalog, JDA, GEP, GT Nexus, HighJump Software, IBM, Infor , Ivalua, Manhattan Associates, Proactis, Puridiom, Verian, and Wax Digital.With the evolution of new technologies such as mobile, vendors are learning to exploit reverse actions to work with other vendors in the market. The increasing demand for mobile applications has created new opportunities to capture the sourcing opportunities.
Key questions answered in the report
What are the key factors driving the global procurement market?What are the key market trends impacting the growth of the global procurement market?What are the various opportunities and threats faced by the vendors in the global procurement market?Trending factors influencing the market shares for EMEA, APAC, and Americas?
Key outcome of the five forces analysis on the global procurement market?
Growth forecast of the global procurement market until 2019?
Technavio also offers customization on reports based on specific client requirement.Related reportsGlobal Procurement of HVAC Systems Market 2014-2018Global Procurement Outsourcing Market 2014-2018Global Procurement of Glass Bottles Market 2014-2018
Technavio Announces the Publication of its Research Report – Global Procurement software 2015 2019
Technavio recognizes the following companies as the key players in the Global Procurement software: Basware, Oracle, SAP (Ariba) and SciQuest
Commenting on the report, an analyst from Technavio’s team said: “Organizations use advanced sourcing applications to reduce supply chain costs by cutting down expenditure on goods and services, and streamlining procure-to-pay processes. With the evolution of technologies such as smartphones, vendors are learning to exploit reverse actions to counter competitors in the market. Moreover, mobile applications have created new opportunities to capture sourcing opportunities. The majority of software vendors are developing features after filtering the common qualifiers, thus maintaining a balance with the reverse action. Users are adopting more of these sourcing applications to evaluate suppliers against preset criteria.”
According to the report, global expansion has led to distance between customers and vendors, increasing lead-time and resulting in disruption of product delivery. Organizations are facing cultural and language barriers, which are causing delays. Such organizations are willing to adopt software that can improve order fulfillment rates and improve operational efficiency. Therefore, organizations have started using procurement software to help in automating procurement, vendor selection, and order fulfillment.
Further, the report states that the inability of departments to co-operate with each other decreases visibility of operations and leads to poor results.