Procurement As A Service Market Trends

Growth Drivers

• Global supply chain optimization is crucial - Supply chain managers can monitor the performance of their operations with the help of procurement management services to better anticipate potential problems in the future and to allocate resources accordingly. In addition, it has developed reliable solutions based on data. It is possible to apply this approach to improve the efficiency of business processes.
  
  To improve the management of stable, functional processes and to provide greater cross-functional visibility, procurement management software provides process management platforms that are based on exceptions. Consequently, more and more consumers are getting into procurement management software. At the end of 2022, 60% of respondents to the KPMG Global Supply Chain Survey indicated that they were planning on increasing their supply chain processes and optimizing them through digital technologies.
   
• Need for procurement and demand management solution - One of the major factors that is driving procurement as a service industry growth is an increasing need for efficient demand and supply management solutions. Demand management is a practice within the organization that enables businesses to adjust their capacity for meeting variations in demand, or manage levels of demand through strategies such as marketing and procurement. According to a survey published in 2024, the implementation of automation in their processes, more than 55% of businesses have a faster recovery across the globe.

Challenges

• Security concerns associated - The expansion of the procurement as a service market could be slowed down by concerns about the security and confidentiality of personal data. Due to the intrinsic complexity of category management and its various subsystems, this situation will be exacerbated. Since so many sectors need to know about this technology, there will be a lack of space in the market for further growth.
   
• Complexities with cloud-based programs - The adoption of cloud-based deployment methods is complex and slows down the growth of the procurement as a service market. In addition, the uptake of cloud-based procurement as a service is restricted to larger businesses due to its high costs and market growth is likely to be hampered.