Tag: procurement

procurement software trends

Top Procurement Software Trends in 2019

Procurement software is becoming widely adopted by companies of all sizes from all across the globe to automate the purchasing process of their businesses. Procurement software has been acknowledged as one of the best solutions in terms of selecting products & services, approving orders, managing purchase orders, sending & receiving invoices, combining multiple orders, and keeping track of all the payments. Due to these benefits, there is a growing demand for the automation of purchasing processes to increase business efficiency, which has become some of the major procurement software trends to drive the growth of the procurement software market over the past few years.

 

The Global Category Spend for Procurement Software is Set to Grow Fast

 

According the recent procurement market intelligence report from SpendEdge, the global category spend for procurement software market is expected to reach USD 7.5 billion by 2021, representing an impressive spend growth of 11.82% in terms of CAGR from 2017 to 2021. Automation is a major driving factor in the global procurement software market and suppliers are aiming at providing automated and integrated process controls within the software to cater to buyers’ demand, which in turn is driving the demand.

Procurement processes, such as order placing and invoice generation, are increasingly moving towards automated processes to reduce management efforts and cost for buyers. Procurement software enables buyers to automate select procurement functions, thereby reducing management’s efforts to deal with those activities while simultaneously recording process parameters.

To gain detailed insights into the benefits of purchasing strategies in procurement software, request more information here!

Top Procurement Software Trends in 2019

 

Growing Demand for Analytics Capabilities in Procurement Software Solutions

 

The use of analytics enables buyers to draw meaningful conclusions from data sets. The recent procurement software trends have seen that analytic features are being widely adopted in during the procurement process to make better decisions. An increasing number of procurement software suppliers have started incorporating analytic functions in their procurement software solutions to provide users with insights on factors such as spend and vendor performance. This trend is expected to be further strengthened during the near future, as more businesses will focus on data analytics for better operational decision making.

 

Cloud-based Procurement Software Solutions is Gaining Popularity

 

One of the obvious procurement software trends is the shift from in-house deployment to cloud-based solution in terms of procurement software adoption over the recent years. A cloud-based software solution involves hosting the software from a dedicated server over the internet while in-house deployment requires users to install hardware infrastructure while implementing the software at buyers’ premises. With the cloud-based software, buyers do not have to spend on hardware. Therefore, the procurement software industry has observed a rise in demand for cloud-based solution.

 

Suppliers are Providing e-Auction Support with Software Suite

 

Vendor selection is an important part of the procurement process, which is often carried out through a physical auction, but now it is being automated by procurement software with e-auctioning functions. The E-auctioning feature in procurement software refers to the process of selection a vendor through an auction on an online platform to further simplify the auction process and increase business efficiency.

 

Emergence of More Managed Service Providers

 

In order to better manage multiple processes in the procurement cycle, procurement software suppliers have started providing end-to-end solutions while also acting as a managed service provider and exhibiting IT aggregation potential. Source-to-pay, a managed service, is fast replacing the procure-to-pay model that was earlier opted by clients to provide a better integrated management.

 

Inclination Toward a Simpler User Interface

 

Most legacy software often has complicated user interface and as a result companies must give training to the software operators. This limiting the number of users who can access or use the software. As businesses from all over the world continue to pursue the higher operational efficiency, procurement software suppliers are increasingly required to offer products and services with simplified user interface for better software usability.

Read more about the top trends for procurement software along with pricing trends, procurement best practices, supplier risks, pricing insights, strategic purchasing, and procurement insights in SpendEdge’s Global Procurement Software Category – Procurement Market Intelligence Report

Robotic Process Automation

Robotic Process Automation in Procurement: 3 Ways RPA Transforms the Procurement Process

Robotic process automation (RPA) may still be a newly emerged technology in the world of procurement but it has already shown the potential to make a huge difference in the digital transformation of global procurement. Today, robotic process automation is widely adopted in various of industries including banking and financial services, IT, telecom, logistics, manufacturing, and healthcare. Just like in other industries, robotic process automation in procurement is also expected to be increasingly adopted and continue to transform this sector over the near future, mainly due to its benefits of efficiency improvement, effectiveness of operations and employee engagement.

 

What is Robotic Process Automation (RPA)?

 

Robotic process automation refers to a type of software or solution that can mimic the activities carried out by a human. With the support of other technologies such as cloud computing, artificial intelligence, and machine learning, RPA can complete repetitive and rule-based tasks on a much larger scale, faster speeds, and without any mistakes. In other words, RPA is more like a kind of virtual and intelligent workforce that can help or even replace human employees to complete those repetitive and time-consuming tasks more efficiently and accurately.

Robotic process automation in procurement has also shown its superiority to make the business process cheaper, faster, and much more effective. During the procurement cycle, RPA is often used to input and transfer data between applications, such as retrieving sales data or inventory data from a PDF reader and entering that data in a spreadsheet. Such a task, which normally takes hours of human labour to complete, can be done by robotic process automation solution within seconds.

The capability of RPA in procurement is actually far beyond from simply dealing with sales data, as it now has been developed and adopted in much wider procurement functions, including contract management, supplier relationship and risk management, supplier onboarding and enablement, account payables, procurement performance management, tactical procurement, category management, master data management, and spend management.

 

Global Robotic Process Automation in Procurement Market Overview

 

According to the recent research report from SpendEge, the global spending of robotic process automation in the procurement sector is expected to register a strong CAGR of more than 62% from 2017 to 2022. The global robotic process automation market can be segmented into cloud-based and on-premise in terms of mode of deployment. By the end of 2018, the cloud-based segment was the leading segment for the category and accounted for more than 50% of the total market share. In terms of market segmentation by end-user, the global RPA market can be broadly segmented into BFSI, healthcare, telecom and IT, retail, e-commerce, and manufacturing. The telecom and IT sector accounts for the largest share in the global RPA market, with more than 30% of the total market share (in terms of RPA spend).

SpendEge has been closely monitoring the latest robotic process automation in procurement trends to create the best-in-class sourcing and procurement market intelligence solutions. These reports and solutions are designed to help our clients mitigate different types of procurement risks and develop effective strategies to optimize their sourcing and procurement excellence. Have a look at SpendEge’s Global Robotic Process Automation Category – Procurement Intelligence Report and download your free sample report now!

3 Ways RPA Transforms the Procurement Process

 

RPA Solutions Reduce Operational Costs for Procurement

 

The spend on RPA in procurement is expected to accelerate rapidly during the next few years, primarily due to the enhanced customer experience offered by RPA. For instance, RPA is being increasingly used in the banking industry for processing loan applications. By verifying and sending loan applications to concerned departments with no errors and significantly lower time compared with manual operations, RPA can expedite the loan approval process and thus lead to increased customer satisfaction.

According to recent estimations from SpendEdge procurement analysts, an RPA bot can perform the same work at approximately 40%-50% lower costs when compared with the average labour rates in major outsourcing hubs such as India and the Philippines. The cost savings offered by RPA are thus predicted to be the largest growth driver in the near future.

RPA solutions are being adopted at a rapid pace by the services sector in developed regions. For instance, in Europe, more than 90% of all companies are predicted to adopt RPA to varying lengths, thus giving a significant boost to category adoption in the region. Consequently, category spend budgets in the EU are expected to grow at a CAGR of nearly 60% during the forecast period. Similarly, in North America, organizations are increasingly leveraging RPA to reduce their reliance on offshore employees. As per SpendEdge estimates, organizations that have adopted RPA have been able to reduce their outsourcing costs by nearly 30%-40%.

 

RPA Offers Enhanced Regulatory Compliance

 

The regulatory framework surrounding the privacy and usage of user data is increasingly becoming more stringent across the globe. RPA is playing an active role in helping organizations stay compliant with the evolving regulatory framework. RPA minimizes the information gap that exists between the data collated from multiple sources and maintains a detailed log of the all the actions undertaken by the RPA bot. The detailed logs thus facilitate active recognition and management of any compliance issues. Additionally, the lack of human intervention ensures that instances of non-compliance are minimized, and organizations can focus on their core operations. In addition, the ability of RPA bots to actively learn from user activity makes them suitable for use across a wide range of industries.

 

RPA Solutions Provide Higher Flexibility and Scalability

 

Buyers are increasingly focusing on the flexibility and scalability of the solutions so that they can achieve their targeted cost savings and optimize the TCO for the category. Suppliers are thus increasingly focusing on offering solutions that help buyers scale up in minimum time. For instance, leading suppliers are now offering buyers with the flexibility to create new robots through online platforms. These robots can then be immediately licensed by suppliers and become ready for deployment.

Similarly, suppliers have developed solutions that provide developers with the flexibility to incorporate highly customized legacy codes into automation solutions, irrespective of the complexity or the size of the code. Additionally, the new code generated can be stored in online libraries and readily reused by other teams, thus significantly cutting down implementation costs and time, while improving the business efficiencies.

SpendEdge's Global Procurement Intelligence Report

Our robotic process automation market procurement intelligence report offers actionable insights on the global spend potential, pricing strategy, and a detailed analysis of the market trends influencing category spend.

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Manufacturing Industry: Manufacturing Cost Strategies, Procurement Challenge, Supply Market Trends to Watch Out for in 2019

LONDON: SpendEdge, a global procurement market intelligence firm, has announced the release of their report portfolio on the global manufacturing industry.

While technology is playing a big role in transforming production processes in the global manufacturing industry, a majority of the key industry players are struggling to identify optimal manufacturing cost strategies to deploy the newest innovations in their business infrastructure. An industrial manufacturing project typically entails an indefinite procurement spend, which pose as a major procurement challenge for the stakeholders to morph their current cost strategies to make space for additional investments. Established companies who boast a full gamut of industrial operations are still managing to eke out profits from their customer base.

However, SpendEdge argues that the marketplace is one unforgiving forum where the ability to identify and adapt to new trends defines the success of firms. The Industry 4.0 revolution, which asserts the necessity of adopting automation in the manufacturing process, is mounting additional pressure on category managers who are struggling to revamp their old-school business model to usher in the breakthrough capabilities without loosening their purse strings. A majority of such category managers are finding answers to such procurement challenge in the market intelligence reports developed by the procurement experts at SpendEdge. These reports help in the creation of a tangible procurement strategy along with optimal manufacturing cost strategies that befit the changing trends of this market space. By assessing the potential risks affecting the market, these sourcing and procurement reports recommend a set of procurement best practices that are meant to foster stability while practicing business in this market. (more…)

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Common Category Management Challenges and Ways to Overcome Them

Category management originated from the retail industry. This retailing and supply management concept involves breaking down the products purchased or sold by a retailer into discrete groups of similar or related products. Category management is a systematic approach to managing a set of products as a strategic business unit. However, recently, category management has been gaining ground outside the retail industry and is being widely used in several public and private sector companies. The motive behind it remains the same; products or services that have similar characteristics and similar supply markets are grouped together and treated as a discrete group. While category management has several known advantages, here our category management experts discuss some of the key challenges faced while implementing it.

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Top category management challenges

Getting Stakeholder participation

In several procurement organizations, the stakeholders are either unknown or they are not in close contact with the stakeholders. It is critical to ensure that the stakeholders understand the importance of the category management, which means that they have to put in some work as well. This transforms the stakeholders to active participants and will improve the results for the procurement organization. Without the support of your stakeholders, the results of the new way of working will be disappointing.

Workforce capability gaps

The transformation of an operational department to a more strategic department results in a chance for gaps in the workforce capabilities. This could be because the organization lacks the skills and capability to become the advisor of the business. This situation can overcome by providing specific training and coaching on the skills and capabilities that are needed trequest proposalo the company’s workforce. Furthermore, they can also be provided with coaching-on-the-job, where experts coach the buyers in the new way of working. For capabilities to be enhanced, a budget needs to be made for supporting the training costs for buyers.

Garnering support from management teams

The need for change often comes from the management team of a company. However, during the course of transformation, the same team may display a lack of engagement and operational support. This leads to a transformation that does not fully realize the benefits out of the category management. In order to gain the maximum benefit from category management, there needs to be full support from the management team throughout the transformation. The management team should be available to support with data analysis, value-chain/TCO-analysis, stakeholder meetings, and supplier negotiations.

The SpendEdge Advantage

Businesses can greatly benefit from adopting category management as one of its best practices in procurement. SpendEdge’s category management solutions have the capacity to add value in reducing supply chain risk as well as drive innovation in different supply chain categories. Our category management experts have proven expertise in helping organizations tap into opportunities in order to manage demand, have better cash flow management, and enforce greater compliance of standards from suppliers. Get in touch with us for tailor-made solutions to suit your business.

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Components and Spare Market Industry Research Report Portfolio

LONDON: SpendEdge, a global procurement market intelligence firm, has announced the release of their report portfolio on global components and spare market.

Considered indispensable for a range of end-user industries, the components and spare market accommodates the global consumer’s penchant towards newer, better, and cost-effective spare parts. According to SpendEdge’s procurement report on the components and spare market, innovative strides being made on this field is further contributing to the spiraling growth of the components and spare market.

It is the norm of the industry that more the growth, more are the complexities involved in venturing into the market. On that note, the components and spare market witnesses several complexities that are the result of business outlook changes and other socio-economic factors. Such complexities are inhibiting investors from accruing the returns that they expect while they decide on capitalizing on this thriving component and spare market. However, we at SpendEdge, believe that no matter what the size and severity of such complexities, it should not limit one’s business dreams. We believe that with the right procurement insights, the challenges can be converted and leveraged as the drivers of success. (more…)

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Leading Change Management Consulting Companies in The World

For modern businesses, change management is an unavoidable aspect. Over the years most businesses seldom made any major changes to their operations. However, the rise of globalization has necessitated the requirement for change for companies that operate on a global scale. This is one of the key factors that have prompted several key global players to embrace change management in order to optimize their transitions. Change management consulting firms provide their clients with consultants to simplify the redirection of resources, budgets and other aspects of business operations. Companies that want to implement significant changes to the operation of their business must take steps to make sure the process is productive. Change management consultants ensure that these companies transition in an effective and efficient manner. The practice of change management consulting relies on several key components including outlining a vision, involving senior leadership, developing a change management plan, engaging stakeholders, creating supportive infrastructures, and accurately measuring progress.

SpendEdge’s Procurement intelligence Report on the ‘Global Organization and Change Management Consulting Market’ furnishes precise insights on the market growth, procurement best practices, top companies, and other procurement related data of the change management consulting market.

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Top change management consulting companies

TCS

Tata Consultancy Services (TCS) is an Indian company that was founded in the year 1968. The company is a global consulting and IT solutions provider with a talent pool of over 387,200 global employees. TCS has been recognized as a Big4 Global IT Services Brand by Brand Finance. The company operates in over 40 locations across the globe. Their vast global presence helps in the availability of competencies for any technical assistance mission or application project across countries.

CGI

This Canada-based company offers an extensive global network that is made up of numerous centers of excellence and strategically located around the world to meet the needs of their clients. CGI’s change management services offer various benRequest Demoefits including stakeholder management, benefit management, business process redesign, communications, and training.

Willis Towers Watson

Willis Towers Watson is a global advisory, broking, and solutions company that employs a workforce of over 40,000 people and is located in 140 countries across the world. The company’s change management experts are known to help clients understand the attitudes, perceptions, and agendas of different employee and stakeholder groups and communicate the company’s plans in an effective manner to these group. The company’s strategies are also designed to help clients achieve their M&A plans.

Genpact

Genpact is a US-based company that was founded in the year 1997 and currently operates in over 25 countries across the world. It is a global professional services firm that drives digital-led innovation and digitally-enabled intelligent operations for their clients. Genpact began in 1997 as a business unit within General Electric, however, in January 2005, the company became an independent, consequently becoming a publicly-traded company in 2007.        


SpendEdge’s procurement report on the ‘Global Organization and Change Management Consulting Market’ offers actionable insights on the factors impacting the cost in the industry, top companies in the change management consulting market, and tips to improve procurement efficiency.

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The Future of Procurement: What has 2019 Got in Store?

Advancements in technology, business practices, and consumer demands have brought about a wave of changes in procurement. With time, procurement’s role in business is changing. In most organizations, procurement is now considered a strategic contributor to an enterprise’s growth and performance. Furthermore, the rise of new procurement trends has resulted in considerable changes in the procurement functions. There are several revolutionary procurement trends that we see today, but it is also important to recognize, acknowledge, and perhaps even leverage them as we work to improve the entire procurement cycle. According to the industry experts at SpendEdge, here are some of the top procurement trends that all set to take off in 2019:

Procurement trends 2019 

Digitization and blockchain

Blockchain is one of the hottest topics across various industries right now and is soon set to become one of the most sought-after procurement trends. Blockchain technology is believed to play an integral role in shaping the transparency of a supply chain. This technology would make it possible to easily share and transmit information in a safe manner across the supply chain. Furthermore, consequent to blockchain’s increasing influence, there is a predicted rise in digital adoption and use of the cloud.

Talent shortage

One of the procurement trends that companies can expect in 2019 is a shortage of qualified talent. Through 2020, the jobs in procurement and logistics are excepted to shoot up by over 20%. Some of the key factors contributing to this include – changing skill requirement, aging workforce, lack of development, and the common perception that supply chain jobs lack excitement. As the role of procurement is changing in most enterprises, the requirement for additional skills sets such as soft skills, critical thinking, and creativity are also growing.

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Corporate social responsibility (CSR)

Over the last few years, CSR has become a procurement criterion in its own right. The rising popularity of CSR among procurement organizations is expected to make it one of the key procurement trends in 2019. This trend is particularly noticeable in the public sector as public purchasing policies are based on European directives, and in large businesses with more than 5000 employees as their responsibility is scrutinized more closely and their larger workforces allow for it too.request proposal

Cybersecurity

In the past few years, the cyber-attacks have skyrocketed at an alarming rate in the U.S. To make it worse, cyber-attacks are growing in size, sophistication, and cost. So, there is little doubt that such malicious practices will continue to plague organization in 2019. In response to the threat, procurement teams must aggressively identify ways to protect the sensitive personal and financial information belonging both to their own organizations and to their suppliers.


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4 Most Common Challenges in Procurement in Healthcare

Globally, the quality of health care services has improved a lot over the past few years. Today, the researchers have found solutions for many diseases that had no cure or could not be treated earlier. Such improvements in health care quality are primarily because of the immense growth in healthcare procurement processes that include segments like clinical research and medical equipment procurement. Despite the strong growth of the healthcare services industry, the suppliers in this sector are facing numerous procurement challenges. In this article, we have listed down some of those challenges that you must know if you are a healthcare organization. But before exploring those challenges, let’s understand a bit about procurement.Contact US

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