The need to optimize the global supply chain drives the digital procurement systems category’s growth

Digital Procurement Systems Category - Procurement Intelligence

The digital procurement systems category is expected to grow at a CAGR of 10% from 2023 to 2030. North America accounts for the largest share of the category. The need to optimize the global supply chain, and the growing adoption of mobile procurement solutions, are driving category growth. Major corporations are employing a variety of strategies, such as mergers and acquisitions, strategic partnerships and contracts, and the development, testing, and release of new products. For instance, in February 2022, Coupa Software announced a suite of the next step in spend management products called Community.ai. Community.ai integrates data-driven artificial intelligence to improve person-to-person connections and transform B2B communities.

Mobile procurement solutions allow purchasing staff to oversee sourcing operations while on the go, which saves money and time. They improve procurement process efficiency by enabling procurement executives to examine and authorize purchase orders, payments, and contracts from their mobile devices. Furthermore, real-time access to procurement data allows for faster and more informed decision-making, driving the use of mobile sourcing technology.

Companies are continuously focusing on collaborating or developing their own technology. For instance,

• In October 2022, Airtel implemented Oracle's SCM cloud and Fusion ERP systems, to address issues like ongoing integration, automation, and adaptability for the age of 5G. The Oracle cloud fusion system supported Airtel in organizing manual operations and gaining full on-demand access to its efficient financial data and supply chain management.

• In July 2022, Workday and McKinsey & Company forged an agreement to assist clients who were dealing with financial and human resources issues. The alliance aimed to deliver real-time data insights and recommendations for officials throughout the world. The two companies' collaboration implemented Workday Strategic Sourcing, and they developed a dynamic negotiating analytics engine to assess procurement proposals.

• In February 2022, Coupa Software announced a suite of the next step in spend management products called Community.ai. Community.ai integrates data-driven artificial intelligence to improve person-to-person connections and transform B2B communities.

• In September 2021, McCarthy Holdings, a construction corporation based in the United States, collaborated with GEP to deploy its smart purchase software. The company intended to use GEP procurement systems to transform its source-to-pay process.

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Digital Procurement Systems Sourcing Intelligence Highlights

• The global digital procurement systems category is moderately consolidated, because of the presence of a few large and minor companies operating both domestically and internationally. To strengthen their customer base presence, these businesses engage in collaborations, mergers and acquisitions, and new product releases.

• The bargaining power of suppliers in this category is high due to a few factors. First, there are only a few major players in the market, giving suppliers more power in negotiations. Second, switching systems are costly and disruptive, making buyers less likely to switch. Third, suppliers have a deep understanding of the market and buyers' needs. Fourth, suppliers are constantly innovating, making it difficult for buyers to keep up.

• License, support, implementation, and maintenance form the most significant cost component in providing digital procurement systems. The overall cost also depends on training, the software solution implemented, and the size of the database.

• Vendors in this category offer services from system selection & implementation, data analytics, storage, system upgrades, and others

Digital Procurement Systems Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the digital procurement systems category:

• License

• Support

• Software & data-server

• Implementation

• Maintenance

• Training

• Other

License, support, implementation, and maintenance form the largest cost components of the digital procurement systems category.

List of Key Suppliers in the Digital Procurement Systems Category

• SAP SE

• Proactis Holdings PLC

• Coupa Software Inc.

• Microsoft Corporation

• Oracle Corporation

• Epicor Software Corporation

• Ginesys

• Zycus, Inc.

• Ivalua Inc.

• Infor Inc.