Digital Procurement Systems
Digital Procurement systems are tools that enables automation in the Source to Pay process. There is high demand for these tools across indutries as it increases process efficiency and reduces processing cost.
AI-powered self-service platform for all your sourcing decision needs across 1,600+ categories llike Digital Procurement Systems.
Market Data, Sourcing & Supplier Intelligence, and Price & Cost Benchmarking.
The World’s first Digital Market Analyst
The World’s first Digital Market Analyst
Abi, the AI-powered digital assistant brings together data, insights, and intelligence for faster answers to sourcing questions
Digital Procurement Systems Suppliers
Find the right-fit digital procurement systems supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.
Use the Digital Procurement Systems market, supplier and price information for category strategy creation and Quaterly Business Reviews (QRBs)
Digital Procurement Systems market report transcript
Global Market Outlook on Digital Procurement Systems
As businesses across the world struggle with the COVID-19 pandemic, the demand for services to optimize cash flow and working capital, alleviate supply risks while maintaining lucrativeness will gain momentum. These uncertain times will favor the growth of the digital procurement systems market over the predefined time frame.
Although the COVID-19 crisis had a negative impact on demand in the Q2 of 2020, with businesses shutting down production activities and cutting costs amidst lockdown restrictions, market players recovered marginally in 2021. The market will attain pre-COVID levels by 2022, with the gradual resumption of business operations.
Moving forward, the need to enhance procurement function with the innovative technologies on the horizon will play a crucial role in pushing the demand over the years ahead. As global supply chains concentrate on advancing processes to ensure efficiency and better business operations, the demand for digital procurement services will grow.
Service Provider Revenues by S2P modules
- The global Source to pay (S2P)market measured has grown by approximately 11% from 2016 to 2017. Most of this growth would occur outside the core transactional apps for eProcurement, esourcing, and eInvoicing and in the complementary apps for spend analysis, Contract Lifecycle Management
- Companies who are in the preliminary stage of migration to etools opt for eProcurement and eInvoicing apps for automating these repetitive processes, to start with
- For companies who are currently using the transactional apps (in P2P process) and is looking to add the complementary and more strategic apps for sourcing, spend analysis, Contract Lifecycle Management, etc., the negotiating environment will be more challenging. Most vendors are seeing good enough demand that they would not reduce prices to close deals, especially for SaaS products.
Digital Procurement Systems Market: Growth Drivers & Constraints
Key Market Drivers
Low Cost of Procurement Process
- Source-to-Pay solution would reduce the overall cost of procurement process
- There would be a reduction in time also, with improved efficiency, reduced error in the process
- The strategic benefits of S2P automation include: fewer errors; decreased warehouse charges; decreased SGA costs; better cash position; reduced borrowing; more competitive pricing; improved supplier and customer satisfaction; higher sales; increased revenue; increased gross margin; increased net margin and higher earnings per share
Mobility of S2P
- The need for Finance and Procurement executives to have data on the go would see rapid growth of electronic sourcing, procurement, invoicing and payments to meet these demands
- The trends such as (Bring Your Own Device) BYOD and cloud based initiatives have given rise to these demands
Key Market Constraints
Supplier Resistance to on-board in the automated process
- Majority of the implementation fail due to lack of supplier interest. Suppliers either face a problem of extra back-end work done or involvement of extra fee in the process
- Such issues pose a problem for the deployment of electronic initiatives
High deployment cost and time
- S2P solutions still have a high implementation cost, with a significant support and maintenance cost. Moreover, they take significant time for implementation.
- Moreover, the ROI depends upon faster and efficient deployment of the solution
Interoperability problems with other systems
- Although service providers take care of launching standard solutions, instances of Interoperability problems with other systems cannot be ruled out
- Hence, finding the right mix of solutions for the entire S2P is challenging
Market dynamics and Trends
- The Pharmaceutical and BFSI industries will remain the top adopters of eProcurement solutions.
- The trend is expected to remain strong given the fact that companies are maturing in terms of procurement and technology adoption year-on-year.
- Adoption in SMEs is increasing and they will continue to opt for SaaS functionalities, which often proves to be cost-effective.
- The market is moving towards better and closer integration between the modules.
- North America and Western Europe hold the largest revenue share in the digital procurement services market given the presence of matured procurement companies.
- Market in Asia Pacific (APAC) is maturing wherein the end-users are gradually showing increasing interest towards eProcurement.
Mergers & Acquisitions, Market Innovations
The global digital procurement systems market is moderately concentrated given the presence of several established players and new entrants operating at the domestic and international levels. Procurement systems providers are adopting key strategies such as strategic collaborations, product innovations, and mergers and acquisitions (M&A).
The source-to-pay market has witnessed a few major Mergers and Acquisitions post the SAP-Ariba-Fieldglass Acquisition. Service providers are constantly on their toes to improve every little bit of their offering. With the changing user demands, extra importance is being given to issues such as Integration, data security, ease of use.
Why You Should Buy This Report
The report on the digital procurement services market is a compilation of first-hand insights, quantitative and qualitative analysis by industry analysts, and inputs from industry experts and participants across the value chain. It offers comprehensive assessment of macro-economic indicators, parent market trends, and deciding factors in tandem with market attractiveness based on the segments. Furthermore, The digital procurement systems market study underlines the qualitative impact of different market factors on market geographies and segments.