Technology is progressing so fast that it’s leading to major transformations across numerous industries. From cloud-based collaboration services which connect us to those across the world in a second, to process automation software driven by artificial intelligence and machine learning tech that uses what it “learns” to enhance its own capabilities, the digital innovations we’re seeing today are truly astounding. One area seeing exceptional development is the realm of supply chain management and procurement.
In fact, the Global Procurement Software Market is expected to grow at a healthy CAGR of 10.17% according to the latest market report. This will have the market reaching 10.2 billion by 2027. What’s driving this market growth? Primarily, it’s the increasing need for procurement process automation, as well as the rapid adoption of e-procurement technology by competitors. These high-tech systems are proving to be so beneficial that organizations risk being left behind if they aren’t quick to implement the advanced software and tools already available on the market.
What is procurement technology and what are the benefits it can bring to an organization? Defined as an integrated set of systems for collecting, storing, and processing data, procurement technology is designed to provide in-depth analysis for the support and reorganization of performance management and decision making. Essentially, the term refers to the assortment of software used to improve service delivery within the supply chain and streamline operations as a whole.
There are a lot of moving parts within the procurement process. As such, various tech solutions have arisen to address certain pieces of the puzzle, creating the need for multiple solutions. This is why procurement tech is generally classified as a set instead of a single, all-in-one solution. Although it may take more than employing one module in an enterprise’s ERP to develop a complete end-to-end system, doing so can improve business efficiencies and lead to a favorable ROI.
Another benefit is the increased visibility it can offer. For example, e-procurement software facilitates finding, purchasing, and managing relationships with vendors. Available as cloud-based and intranet systems, these services provide organizations with automated tools designed to support business operations, achieve greater productivity, and reach a higher level of transparency within the system. As a result, companies can establish a streamlined workflow that reduces delays and enhances overall operative functionality, giving them a competitive edge.