Global Procurement Software Market 2017-2021
About Procurement Software
Procurement software is a program that allows organizations to automate the process of purchasing resources and managing inventory. The software generates and approves purchase orders, selection, and ordering of product or service; matches invoices for materials received; and tracks all payment schedules. It is used for a range of applications, from shopping carts to highly complex SCM applications for global enterprises.
Technavio’s analysts forecast the global procurement software market to grow at a CAGR of 10.16% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global procurement software market for 2017-2021. To calculate the market size, the report considers the revenue generated from software subscriptions, installations, updates, licenses, maintenance costs, and professional services to calculate the market size.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Procurement Software Market 2017-2021
Technavio recognizes the following companies as the key players in the global procurement software market: Basware, IBM, Oracle, PROACTIS, SAP, and SciQuest.
Other Prominent Vendors in the market are: BravoSolution, BuyerQuest, Coupa Software, Elcom, Epicor, Infor, IQNavigator, Ivalua, JDA Software, Manhattan Associates, OpusCapitam, Tradeshift, Tungsten Network, Vinimaya, and Zycus.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is increased use of procurement analytics. Analytics is one of the fastest emerging trends in the P2P outsourcing market. Analytical solutions use statistical modeling tools and methodology for the in-depth analysis of procurement process. Advanced analytical tools such as predictive analytics provide insights related to procurement process by clustering many factors anticipated in the SCM systems. The insights provided by the advanced analytical tools help CPOs in their key decision making process. The complexities in the supply chain process are increasing in organizations due to increase in number of suppliers and range of materials that are being procured. There is also rising threat from numerous transactional frauds in the process and errors in the procurement process management systems. Analytical services help organizations to resolve the issues of fraud and errors through automated fraud detection systems embedded with analytical tools. Companies are working to ensure profitability and right vendor selection to purchase goods or services. In addition, some organizations are working with data analytics companies to gain insights about the supplier, market, and category of the procurement process, which helps them to recognize the aspects of cost reduction.”
According to the report, one driver in market is consolidation of SCM process. Since 2012, supply chains have become complex. Many suppliers cater to different industries globally, making it necessary for them to reduce the complexity of their supply chains. Procurement software helps users integrate business processes and improve the value of businesses. Chief procurement officers prefer this solution for ensuring transparency in financial supply chains and contract details and for generating invoices to complete payments. This is done by integrating e-sourcing and procurement software, where the software works with the finance department of an organization to improve the balance sheet as well as offer early payment discounts to suppliers, thus reducing supply risk. This helps the organization improve the visibility of resources of the supply chain. Business-to-business (B2B) standards are evolving, so procurement software vendors need to support many different business processes within a customer’s supply chain. Also, several companies are changing their business strategies, which require inventory planning and software that can support this.
Further, the report states that one challenge in market is lack of skilled professionals. Procurement software is complex, and end-users need extensive training to use it. This slows down the procurement cycle and reduces procurement efficiency. For instance, in 2015, more than 70% of the business in the UK have come across difficulties to hire procurement professionals for this sector over the past 12 months. Developing countries such as China and India are still lagging in terms of adoption of the software, due to the lack of skilled procurement professionals. Even the few that have adopted this software do not have sufficient knowledge on how to use it to its optimum efficiency.
Basware, IBM, Oracle, PROACTIS, SAP, SciQuest, BravoSolution, BuyerQuest, Coupa Software, Elcom, Epicor, Infor, IQNavigator, Ivalua, JDA Software, Manhattan Associates, OpusCapitam, Tradeshift, Tungsten Network, Vinimaya, Zycus.
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