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.
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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.