Retail Sourcing and Procurement Market – Global Industry Size, Share, Trends, Opportunity, and Forecast By Component (Service (Implementation, Training & Support, Consulting), Solution (Strategic Sourcing, Supplier Management, Contract Management, Procure-to-Pay, Spend Analysis), By Deployment Type (On-Premises, Cloud), By Organization Size (SMEs, Large Enterprises)), By End User (Retailers, Food
Published Date: November - 2024 | Publisher: MIR | No of Pages: 320 | Industry: ICT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationRetail Sourcing and Procurement Market – Global Industry Size, Share, Trends, Opportunity, and Forecast By Component (Service (Implementation, Training & Support, Consulting), Solution (Strategic Sourcing, Supplier Management, Contract Management, Procure-to-Pay, Spend Analysis), By Deployment Type (On-Premises, Cloud), By Organization Size (SMEs, Large Enterprises)), By End User (Retailers, Food
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 5.07 Billion |
| CAGR (2023-2028) | 14.63% |
| Fastest Growing Segment | Cloud |
| Largest Market | North America |
Market Overview
The projected market size for the global retail sourcing and procurement market is expected to reach USD 5.07 billion by the end of 2022, with a compound annual growth rate (CAGR) of 14.16% during the forecast period.
Key Market Drivers
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The growth of the global retail sourcing and procurement market is being significantly propelled by the escalating emphasis placed on supply chain optimization and cost efficiency within the retail industry. As retailers strive to navigate an increasingly competitive landscape, they are acutely aware of the pivotal role that efficient sourcing and procurement processes play in maintaining profitability and operational excellence. In an era marked by global supply chains and consumer demands for rapid access to a diverse array of products, retailers are turning to sophisticated sourcing and procurement solutions to streamline their operations. These solutions enable retailers to identify the right suppliers, negotiate favorable terms, and manage procurement processes seamlessly, thus reducing operational costs and enhancing resource utilization. With the ever-evolving expectations of consumers and the need to deliver products in a timely and cost-effective manner, the adoption of these solutions is seen as a strategic imperative. This growing emphasis on supply chain optimization and cost efficiency reflects a larger industry trend where retailers are leveraging technology-driven solutions to transform their sourcing and procurement practices, ultimately driving the expansion and advancement of the global retail sourcing and procurement market.
The Rise of E-Commerce
The exponential rise of e-commerce has emerged as a powerful driving force behind the growth of the global retail sourcing and procurement market. As consumers increasingly shift towards online shopping platforms, retailers are confronted with the challenge of managing a diverse array of products across various digital channels while ensuring seamless customer experiences. In response, retailers are turning to advanced sourcing and procurement solutions to efficiently source products, manage inventory, and fulfill orders in the dynamic e-commerce landscape. These solutions enable retailers to adapt their procurement strategies to meet the unique demands of e-commerce, such as rapid order fulfillment, diverse product offerings, and real-time inventory visibility. By harnessing technology-driven tools, retailers can optimize their supply chains, minimize stockouts, and enhance inventory turnover rates. This is particularly crucial in an era where customer expectations for prompt delivery and availability have reached unprecedented levels. Thus, the rise of e-commerce has not only redefined the retail landscape but has also ignited a surge in the adoption of sourcing and procurement solutions that are tailored to the distinct needs of the digital retail era. This trend underscores the symbiotic relationship between the growth of e-commerce and the expansion of the global retail sourcing and procurement market.
The Expansion of Retail Operations across International Borders
The expansion of retail operations across international borders has emerged as a compelling catalyst driving the growth of the global retail sourcing and procurement market. As retailers broaden their presence into new markets, they encounter the complexities of managing diverse supplier networks, navigating varying regulations, and ensuring consistent product quality. This trend necessitates the adoption of sophisticated sourcing and procurement solutions that can effectively manage global supply chains. These solutions empower retailers to identify reliable suppliers, negotiate favorable terms, and maintain compliance with regulations unique to each region. With the increasing globalization of trade, the ability to efficiently source products from suppliers worldwide becomes paramount for sustained business success. The adoption of sourcing and procurement solutions not only enhances supply chain efficiency but also positions retailers to tap into new markets with agility and confidence. As international expansion becomes integral to growth strategies, the role of sourcing and procurement solutions in enabling seamless cross-border operations is pivotal, propelling the advancement of the global retail sourcing and procurement market.
The Increasing Emphasis on Sustainability and Ethical Sourcing
The surging emphasis on sustainability and ethical sourcing practices has become a driving force propelling the growth of the global retail sourcing and procurement market. With consumers demanding more transparent and responsible supply chains, retailers are under pressure to ensure their products are sourced ethically and produced in environmentally sustainable ways. This paradigm shift in consumer expectations has led retailers to integrate sustainability considerations into their sourcing strategies. Advanced sourcing and procurement solutions offer tools that enable retailers to trace the origin of products, monitor supplier practices, and verify compliance with ethical and environmental standards. As retailers seek to align their operations with values that resonate with conscious consumers, sourcing and procurement solutions play a pivotal role in sourcing products responsibly. The adoption of these solutions not only supports retailers in meeting evolving consumer demands but also positions them as industry leaders in sustainability. This trend reflects a transformative shift in the retail industry, where ethical sourcing practices have not only become a moral imperative but also a market differentiator, thus driving the growth of the global retail sourcing and procurement market.
Key Market Challenges
Concern Related to Data Security and Privacy
The Disruptions in Supply Chain
Disruptions in the supply chain are significantly hampering the growth of the global retail sourcing and procurement market. Events such as natural disasters, geopolitical tensions, and unforeseen crises can lead to disruptions in the flow of goods and materials, causing delays, shortages, and increased costs. These disruptions pose challenges for retailers aiming to ensure a consistent supply of products to meet consumer demands. Sourcing and procurement processes heavily rely on the stability and predictability of supply chains to function effectively. When supply chain disruptions occur, retailers may struggle to identify reliable suppliers, negotiate favorable terms, and maintain consistent product quality. The uncertainty launched by such disruptions can hinder retailers' ability to make informed decisions, impacting their competitiveness and overall operational efficiency. As a result, addressing and mitigating supply chain disruptions becomes paramount for fostering growth in the global retail sourcing and procurement market, allowing retailers to navigate challenges and maintain a resilient supply chain ecosystem.
Key Market Trends
The Integration of Digitization and Automation
The integration of digitization and automation is exerting a significant propulsive influence on the expansion of the global retail sourcing and procurement market. As retailers strive for operational efficiency and streamlined procurement processes, they are increasingly adopting advanced digital tools and automated solutions. These technologies facilitate the automation of manual procurement tasks, such as supplier onboarding, contract management, and order processing. By eliminating time-consuming manual interventions, retailers can enhance accuracy, reduce errors, and expedite procurement cycle times. Moreover, digitization and automation enable real-time data sharing and collaboration among stakeholders, enhancing decision-making and supplier management. As retailers embrace these innovative approaches, they position themselves to optimize their sourcing and procurement practices, respond swiftly to market demands, and stay competitive in an increasingly digital retail landscape. The integration of digitization and automation thus emerges as a key driver in shaping the growth trajectory of the global retail sourcing and procurement market.
The Increasing Emphasis on Real-time Visibility
The growing emphasis on real-time visibility is playing a pivotal role in driving the expansion of the global retail sourcing and procurement market. In an era characterized by dynamic consumer demands and complex supply chains, retailers recognize the paramount importance of having instant access to accurate and up-to-date information. Real-time visibility into supplier performance, inventory levels, and procurement processes enables retailers to make informed decisions swiftly and proactively respond to changes in demand and supply. Advanced sourcing and procurement solutions provide this real-time insight, facilitating better collaboration with suppliers and reducing the risk of disruptions. With the ability to monitor and manage operations in real time, retailers can optimize inventory, enhance order fulfilment, and mitigate potential supply chain bottlenecks. As the retail landscape evolves, the adoption of solutions that provide real-time visibility emerges as a transformative driver, elevating the global retail sourcing and procurement market by ensuring operational agility and maintaining customer satisfaction.
Segmental Insights
Deployment Mode Insights
Based on deployment mode, the cloud emerges as the predominant segment, exhibiting unwavering dominance projected throughout the forecast period. With its unmatched flexibility, scalability, and accessibility, the cloud emerges as the prevailing choice for retailers seeking efficient sourcing and procurement solutions. Its dominance is poised to endure throughout the forecast period due to its ability to support the dynamic demands of modern retail operations. The cloud's capacity to offer real-time collaboration, remote access, and seamless updates positions it as the preferred deployment mode, underscoring its pivotal role in shaping the growth trajectory of the global retail sourcing and procurement market.
End User Insights
Based on end user, the retailers segment emerges as a formidable frontrunner, exerting its dominance and shaping the market's trajectory throughout the forecast period. As retailers navigate intricate supply chains and strive for efficiency, advanced sourcing and procurement solutions become indispensable. By leveraging technology-driven tools, retailers can optimize inventory, streamline supplier relationships, and enhance operational effectiveness. As retailers adapt to ever-evolving consumer demands and industry dynamics, their central role in the market's growth is unmistakable. The retailer’s segment's firm hold underscores its influence in shaping the direction of the global retail sourcing and procurement market.
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Regional Insights
North America takes center stage in the global retail sourcing and procurement market, asserting its dominance through a convergence of strategic factors that highlight its essential role in shaping the industry's growth. The region's advanced technological infrastructure, mature retail sector, and propensity for early technology adoption establish it as a trailblazer in adopting innovative sourcing and procurement solutions. North America's dynamic retail landscape is characterized by diverse consumer preferences and intricate supply chains, necessitating sophisticated tools to optimize procurement operations. Furthermore, its strong focus on data security, compliance, and sustainability aligns with modern consumer expectations, prompting retailers to implement cutting-edge solutions. As a hub of technological innovation and market trends, North America's dominance serves as a pivotal factor in shaping the industry's growth trajectory, as its retailers lead the way in adopting and driving the evolution of retail sourcing and procurement practices.
Recent Developments
- In April 2023, news emerged that Amazon was exploring the possibility ofacquiring stores from major retail chains such as Kroger and Albertsons. Thispotential move highlights Amazon's continuous efforts to expand its presence inthe brick-and-mortar retail space. By considering the acquisition ofestablished supermarket chains, Amazon aims to further solidify its position inthe grocery sector and leverage its technological prowess to enhance theshopping experience for customers. The move aligns with Amazon's strategy ofintegrating physical stores with its e-commerce platform, providing consumerswith seamless shopping options both online and offline.
- In February 2023, Thoma Bravo, a leadingprivate equity investment firm, successfully completed its acquisition of CoupaSoftware. This development underscores the ongoing trend of mergers andacquisitions within the technology and software sector. Coupa Software isrecognized for its cloud-based spend management and procurement solutions,catering to businesses seeking streamlined procurement processes and improvedspend visibility. Thoma Bravo's acquisition of Coupa Software aligns with itsstrategic focus on investing in high-growth technology companies. Thisacquisition is expected to provide Coupa Software with increased resources andsupport to further enhance its offerings and expand its market reach.
- In December 2022, WNS, a global businessprocess management and outsourcing company, announced strategic acquisitionsaimed at bolstering its digital analytics and procurement capabilities. Thismove underscores the company's commitment to expanding its service offeringsand expertise in response to evolving industry demands. By enhancing itsdigital analytics and procurement capabilities through acquisitions, WNS aimsto provide its clients with advanced solutions that leverage data-driveninsights and streamlined procurement processes. This strategic alignment withmarket trends highlights the increasing importance of data analytics andefficient procurement practices in today's business landscape.
Key Market Players
- Oracle Corporation
- Proactis Holdings Plc.
- Kinaxis Inc.
- Epicor Software Corporation
- Coupa Software Inc.
- JDA Software Group Inc.
- HighJump Software Inc.
- Basware Corporation
- SAP SE
- Zycus, Inc.
| By Component | By Deployment Mode | By Organization Size | By End User | By Region |
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