These factors are driving the procurement solutions market

In today’s day and age, procurement is a process which is not just required but required in large amounts across a number of industries and sectors. Given the volumes that are in question over a daily basis, companies need to ensure that their procurement solutions systems are up-to-date with the latest that is on offer. Or at least close to the latest on offer. Mentioned below are the factors which are driving the procurement solutions market to new heights.

More demand than supply-An unfortunate occurrence is the fact that the need for supply chain professionals is much more than the numbers that are actually being recruited or are already professionally employed.  It is not that there is only shortage because of numbers, there is also shortage because of the fact that a large number of candidates do not match up to the professional requirements. Even a large percentage of the people who are working are nearing retirement age and it is even suspected that some of them are past the retirement age and carrying on because demand is not meeting supply. At times, even companies do not take the correct approach to hiring and this causes a problem.

Supply chain management awareness increase-There were a lot of outside factors like politics and natural disasters which had a telling effect on the supply chain processes all over. These led to things like higher supplier standards, vendor consolidation, and more centralized buying processes. This should help towards sustainability in the future but only if the practices in place are both strong on ethics and financially feasible.

Cyber security apprehensions-It was noticed over the last year or so that there had been a considerable increase in the number of data breaches. It is critical that organizations use procurement solutions which guard all the data being used on a regular basis and ensures compliance both within the organisation as well as procurement.

More technology and flexibility-There are still a huge number of people who use MS Excel to manage all their purchases despite the manner in which the P2P market has been flourishing.  The problem with Excel is that there is too much of a human element involved in it to prevent errors on a regular basis. It also fails to match the speeds that are expected and people are now using their smartphones to make better purchasing decisions.

Another change has seen cloud based technologies take over procurement systems and this has made processes faster and more seamless. This allows for more time to be allotted for actual demand.  As compared to time spent on fixing errors and also permits one to look for means which further enhance the systems in place and this lets the overall market operate in a much better manner.

Superior spend analytics-There are a lot of procurement professionals who have still not come to terms with handling big data and there are some who probably choose not to. Amongst the advantages of automated procurement solutions are things like the ability to find complementary procurement technologies, generate better processes, and make decisions based on data.

Shift in focus-In spite of the trends of the global economy, it seems that organizations around the world are now looking to invest in strategic investments as compared to the traditional cost savings approach which would generally be taken earlier.  This probably has a lot to do with the change in speed and flexibility which is mentioned above.  This particular trend has been in the mix of things in the last couple of years and greater cooperation across the affiliated organizations has paved the way for value creation as compared to responding to only cost pressures when the need arose.

The core functions of procurement solutions may not have changed but most of these above mentioned factors have been good value additions to the market in general. Both organizations and their clients stand to gain if processes become faster and more seamless while things like cyber security and employment shortages will keep the industry interested in adapting and recruiting the best.