About Sourcing Software
Sourcing is the process of locating sources of goods and services of a company. It is a component of the procurement process. In procurement, major focus will be on the logistics of acquiring materials, whereas in sourcing the focus is to find the best and cost-effective suppliers for the resources. Since the profit of a business can rely heavily on finding the best possible sources, sourcing plays a vital role in the procurement process and in the overall supply chain management process.
Technavio’s analysts forecast the global sourcing software market to grow at a CAGR of 8.19% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global sourcing software market for 2017-2021. To calculate the market size, the report considers the revenue generated from the sales of sourcing software globally.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Sourcing Software Market 2017-2021
Technavio recognizes the following companies as the key players in the global sourcing software market: Capgemini, Coupa Software, IBM, SAP, and sciQuest.
Other Prominent Vendors in the market are: ClearTrack Information Network, Determine, eBid Systems, ESM Solutions, GEP, Market Dojo, Winddle, Xeeva, and Zycus.
Commenting on the report, an analyst from Technavio’s team said: “Mobile technology is one of the most important trends in the market. Mobile solutions are widely being implemented in organizations to manage end-to-end sourcing process. Firms are implementing a mobile first strategy to manage sourcing process and to bring mobility in their transactional process. Mobile applications built for sourcing in organizations enhance decision-making process for procurement professionals in organizations. The added functionality in mobile applications helps procurement professionals to communicate effectively with suppliers on a real-time basis. Mobile applications also store data related to invoices in the mobile devices, such as smartphones and tablets, which can be transferred to the concerned business units during the sourcing process.”
According to the report, cost reduction is one of the important reasons behind the adoption of sourcing software in organizations. Procurement managers are facing challenges in the effective management of sourcing process due to increasing complexities and manual errors in the supply chain systems. Sourcing software helps organizations by efficiently engaging suppliers in competitive bidding events, driving down sourcing costs, and diversifying the supply chain. It also reduces the sourcing lead time by saving weeks in the cycle to complete the procurement of goods and services. The sourcing software automates the sourcing processes by strategically sourcing goods and services and using faster online bidding with their chosen suppliers. With automation, sourcing organizations can reduce manual tasks, and ultimately, increase savings.
Further, the report states that while implementing sourcing software in an organization, its challenging to integrate sourcing software with other software such as ERP, supply chain management, procurement, and CRM. Procurement professionals require domain expertise for implementing the complex sourcing software. Specialized skill sets are required for handling new projects and change management. It is essential to have process expertise, infrastructure, and systems to provide quality services to clients. The vendors should be equipped with technical competence, tools, and expert resources to implement sourcing solutions accurately for their clients. The clients may be using legacy systems for procurement management systems. These legacy systems have different system configurations that create complexities to make the device interoperable. Supply chain management IT solutions are implemented to reduce the complexities of the distribution system and to reduce the cost. Technical glitches during system integration and interoperability issues in the sourcing software can lead to business discontinuity, which will hamper the business performance of clients.
Capgemini, Coupa Software, IBM, SAP, sciQuest, ClearTrack Information Network, Determine, eBid Systems, ESM Solutions, GEP, Market Dojo, Winddle, Xeeva, Zycus.