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
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.
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.