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HOME > GLOBAL REPORT > Retail

:: Retail Sourcing and Procurement Market by Solution (Strategic Sourcing, Supplier Management, Contract Management, Procure-to-Pay, and Spend Analysis), Service (Implementation, Training, Consulting), Deployment, User and Region - Global Forecast to 2021 ::

Published by MarketsandMarkets
Category Retail
Date 2016-05-01
Page 168
Price

The global market is expected to grow from USD 2.58 Billion in 2016 to USD 4.83 Billion by 2021, at a CAGR of 13.4%. Factors such as the need for better visibility in sourcing related data and centralization of procurement processes are expected to encourage the growth of this market.

In the retail sourcing and procurement market, training and support is the fastest growing service segment for the small and medium enterprises. This segment is expected to grow as the customers require specialized instructors who can carry out project executions with excellence. Moreover, training services are also offered through dedicated training centers that offer eLearning courses for managers, developers, and implementation teams. The training and support service team allows retail organizations to utilize the software for maximum profits, and ensures application training segments and sourcing governance programs are applied to augment the sourcing and procurement initiatives.

Presently, the retail sourcing and procurement market is growing progressively with constant technological advancements. The retail sector is increasingly using sourcing and procurement solutions to automate their sourcing and procurement processes, such as procure-to-pay and spend analysis, which are among the largest revenue contributors to the market.

Sourcing and procurement cloud service providers such as Zycus, Basware, Perfect Commerce, Coupa, GEP, SciQuest, Determine Software, and Intengo play a vital role in this market as they provide modern user experience, enabling organizations to reduce cost and integrate with a web-based, on-demand solution that requires no investment in infrastructure. The retail sourcing and procurement ecosystem consists of various stakeholders, including solution providers, system integrators, third-party vendors, cloud service providers, application developers, professional service providers, and retailers. These stakeholders play an important role in the significant growth of the market by providing the desired technologies, networks, and applications.

Retail Sourcing and Procurement Market

Among the regions, North America is projected to hold the largest market share and is expected to dominate the retail sourcing and procurement market from 2016 to 2021. The factors supplementing the growth of this market are the strong collaboration between retail organizations and suppliers and centralization of procurement processes. The market in Asia-Pacific is expected to show a significant growth potential in the years to come. This extensive growth is owing to the need for sourcing and category expertise and strong demand to build better supplier relationships and enhanced purchasing experience.

In the years to come, it is expected that the market will grow substantially with the advancements in enterprise mobility, along with the upsurge in mobile procurement solutions. However, reluctance to adopt new technology and inappropriate management of invoice and payables are likely to inhibit the growth of this market.

The major vendors in the retail sourcing and procurement market include Oracle Corporation, IBM Corporation, SAP, Ivalua, Zycus, GT Nexus, Epicor Software Corporation, SciQuest, PROACTIS, Tradogram, GEP, and Vroozi. New product launches and partnerships are the key strategies adopted by these players to expand their global footprints. Leading players in this market, such as SAP SE, IBM, and SAP Ariba are expansively extending their product portfolio through innovation and by adapting to changes prevalent in the business ecosystem such as mobility, big data, cloud, and analytics. The acquisitions of various prominent players help SAP SE, Oracle, and IBM in enhancing their product portfolio and increasing their customer base. For instance, in December 2014, SAP SE acquired Concur Technologies to advance its business development strategy to develop a new model for business resources, processes, and spend analysis.