What are the Vital Trends in the Procurement Software Industry?

In organizational growth and strategies, procurement teams have started playing very important roles, which is making technology a crucial enabler for electronics purchasers. Procurement software helps companies and procurement subcontractors automate their source-to-pay cycles, which cannot be achieved through manual processes or spreadsheets.

In assisting buyers to analyze spend, manage contracts and get better control over the processes of procurement, procurement software automates functions like electronic PO submissions to suppliers, PO creation & verification, inventory management, order confirmations, trend analysis, data collection and such other tasks. Thanks to procurement software, error potential is reduced and organizations can save a lot of time, effort and money. It is these benefits that helped procurement software catch the attention of procurement departments across different industries.

The procurement software market is thriving

One of the major reasons why procurement software marketing is growing is the willingness of companies to automate their administration and product inventory.

It is predicted that between 2018 and 2023, the compound annual growth rate of the procurement software market will be 10.01%.

As per procurement agents, the growth will be segmented on the basis of software type, its deployment, size of the organization, regional demand and vertical. Both cloud-based and on-premise solutions are included in the procurement software market. Those platforms are capable of handling e-procurement, spend analysis, e-sourcing, supplier management, contract management and such other functionalities. IT & telecom, retail, electronics, automotive, travel & logistics and mining industries are some of the key users of the procurement software.

Key qualities of the procurement software

The mercurial growth of the procurement software market can be attributed to the software’s qualities mentioned below.

• Real-time access to budget data: The procurement software makes it possible for professionals to access real-time budget data. This allows for more accurate and easier spend analysis and the professionals know exactly where their money is going and being spent.

• Mobile access: Procurement subcontracts or business professionals need to manage purchases even when they are traveling. With the software allowing remote access abilities for smartphones and other mobile devices, purchase requests can be completed from anywhere and at any time. There are also talks of AI being infused with the software, which is going to further fine-tune the procurement processes and make this software all the more desirable and essential.

• Real-time updates: As the procurement software automates the process, nobody has to worry about where a purchase order, purchase requisition or invoice needs to go. The software will update all the details automatically and make it easier for procurement professionals to access the data.

To sum up, organizations have only just begun to understand the untapped potential of procurement agents or their procurement teams. This realization is being driven by the maturation of technology, which is capable of enhancing the efficiency of purchasing with the help of procurement software. As such, the market is fertile for procurement software and the software can bestow organizations with the flexibility and efficiency that they have been seeking.