Global Retail Sourcing And Procurement Market by Service Type (implementation, training & support, consulting) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

In 2016, the global Retail Sourcing and Procurement market was valued at USD 2,748.7 millions. The industry's growth factor is expected to be the increasing global adoption of these solutions by different retail businesses over the forecast period. The internet of things, cloud technology and large data are key factors to increase the adoption of these solutions in businesses.

Retailers are constantly faced with new challenges due to mobile and online shopping. Market pressures such as volatile fuel prices and rising raw material costs add to the everyday difficulties. These challenges continue to threaten profit margins. Retail organizations' main strategies are currently aligned to advanced planning and quality assurance in order to improve customer satisfaction. However, it is urgent that strategies be implemented for better purchasing and decision-making.

Since the inception of business, procurement practices have been in place. The situation has changed significantly with the advent of technology-based sourcing. Strategic purchasing software allows enterprises to track and procure goods quickly, most efficiently, maximize savings, and also evaluate and keep track the supplier performance and future business transactions. The future growth of the industry is expected to be driven by the adoption of these technologies in the business.

Automation in procurement activities has been observed over the past few years. This trend is likely to continue due to high adoption of mobile apps and support tracking and procurement processes. Technological adoption in retail sourcing, procurement solutions and software is driving increased competition in this sector. This is due to the low barriers for small niche companies to enter the industry, growing online buying and tracking services due geographical proximity.

Large retail companies have the potential to be retail industry infrastructure providers to maintain their market position. This is due to the demand for store operations and inventory control in the future. The market will grow in the next few years because of the increased demand for better visibility and tracking related data, central procurement processes, and improved collaboration among suppliers and retailers. The industry will grow because end-users have greater knowledge about the resources available and can make better product choices. This is due to globalization. The market is being held back by insufficient management and reluctance of new technology. Market growth is further expected to be aided by the adoption of sourcing and procurement processes for apparel, food, and beverages.

Consider the potential for an increase in indirect taxes such as customs duties and revenue recognition. Flexible tracking systems are required for obtaining goods from multiple countries as well as switching suppliers between one country to the next. These factors have prompted retailers to adopt advanced sourcing and procurement techniques and tools in order to improve customer experience and collaborate between the back, middle and front end of their business.

Solution Insights

The largest segment in sourcing and procurement solutions was strategic sourcing, accounting for approximately 21% of total volume in 2016. Strategic sourcing is the key to ensuring that the market develops quickly. It can consolidate the buying power of the retail company to get the best price. It also helps increase efficiency by formalizing the process of gathering, analysing, and factoring spend information into the procurement process.

It is vital to the cost structure and competitiveness of small and large companies. Strategic sourcing is about forming long-term relationships and analyzing high volume purchases with a small number of suppliers who can offer quality products and services at low prices. Strategic sourcing is a great option for retailers that have high volumes of purchases. It can help lower costs.

Spend Analysis was the second largest solution category, accounting for more than 16% of total revenue in 2016. Spend analysis solutions will continue to grow due to the increasing awareness of savings opportunities within organizations in Europe and Asia Pacific. Spend tools allow for transparency in spend and enable category managers to find new savings opportunities. The tool also gives purchasing staff free time that can be used for other categories in competitive sourcing. Spend analysis helps manage supplier portfolios with preferred contract suppliers and ensures compliance savings.

Service Insights

Global retail sourcing and procurement is experiencing a paradigm shift due to the availability of automated, cloud-based procurement solutions and sourcing options. The largest service segment was consulting services, accounting for more than 39% of total market revenue in 2016. The rapid evolution of retail purchasing is due to technological advancements, changes in hiring and personnel requirements, business practices and consumer needs and concerns. Big data will play a greater role in procurement. It will simplify procurement processes and help to select the best solutions. Artificial intelligence and big data will also revolutionize the efficiency and speed of sourcing as well as procurement.

The largest share of solutions will be found in the U.S., Canada and Europe due to their better network infrastructure and digital penetration in logistics support. The largest market segment was consulting services, which accounted for 38% of the total in 2016. With their extensive range of consulting services, major companies like SAP SE, IBM Corporation and Oracle provide expertise solutions that help businesses assess trends and current practices and achieve value-added results. Many companies offer market intelligence solutions for spend analysis, strategic and supplier relationship management, industry benchmarking, and spend analysis to give a complete view of future expenses.

Information on Deployment

On-premise was the most successful segment within the deployment segment. It accounted for more than 41% of total revenue in 2016. On-premise procurement software has a growing market share due to the increasing popularity of software running at remote locations. The growth of small and medium-sized companies is being hampered by high costs and inefficient investments.

The CAGR for cloud-based procurement software and sourcing software will be 12.1% in the period 2017-2025. Through social collaboration and automation, the procurement cloud streamlines the source-to pay process, which allows for high margins while controlling costs. Cloud-based software allows for seamless access without the need to make additional IT efforts. This segment will see the greatest growth due to timely updates and maintenance in cloud-based procurement software.

A contemporary tracking strategy is a common approach for many enterprises. Establish shared service centers and outsource business and IT processes to third-party providers. A hybrid tracing strategy is used by many of these companies to manage their external and inner sourcing relationships. It has a higher performance, lower overheads and better relationships with external vendors. A hybrid sourcing strategy has also transformed the internal sourcing function to a competent sourcing unit, which has contributed to the segment's growth.

End-user insights

With 51% market share in 2016, the small and medium enterprise segment held the largest market share. It is expected to grow at a CAGR 11.7% between 2017-2025. Small and medium enterprises are being pressured to keep margins the same while meeting the increasing demand for product availability. Enterprises can use sourcing and procurement solutions to source, contract, manage inventory, and perform other purchasing activities. They also accurately reflect any changes made within an organization or in any region.

The bottom line performance of an enterprise is directly affected by retail procurement and sourcing. These methods provide a more detailed and informed status to end-users than other solutions in the industry. These solutions will be more widely used in electronics, food, beverages and manufacturing suppliers over the next eight years.

Regional Insights

North America was the largest market, accounting for 33% of total market revenue in 2016. The market is set to experience significant growth over the next eight years due to the increasing adoption of automation in procurement, sourcing, and technological advances in analytics, cloud and BYOD (Bring Your Own Device).

Asia Pacific is expected to grow at a significant CAGR of 12.9% during the forecast period. This is due to the rapid growth of retail businesses over the past few years. Japan, China, India and China have seen strong economic growth. The industry is also driven by a rapidly growing user base of technology and a developing infrastructure.

Market Share Insights & Key Companies

The global Retail Sourcing and Procurement markets are highly competitive and concentrated. In 2016, the four largest companies accounted for the highest share of global production. SciQuest, IBM Corporation, SAP SE and Oracle are the key market players. To strengthen their market position, market players use strategies like collaboration, acquisition, new product development, launches, and new product design.

App development and custom software will be key to being competitive in this market. There are frequent mergers and acquisitions to diversify product lines and increase market share. Amazon, the largest retailer in the world, purchased Whole Foods Market, a supermarket chain valued at USD 13.7 billion to expand its business.

Retail Sourcing and Procurement Market Report Scope

The report covers segments

This report predicts revenue growth at the global, regional and country levels. It also analyzes the industry trends for each sub-segment from 2014 to 2025. Grand View Research segmented the global Retail Sourcing and Procurement markets based on product and geographic regions.

• Solution Outlook (Revenue USD Million, 2014-2025)

  • Strategic sourcing

  • Supplier management

  • Management of contracts

  • Procure to-pay

  • Spend Analysis

• Service Outlook (Revenue USD Million, 2014-2025)

  • Implementation

  • Consulting

  • Training & Support

• Forecast for Deployment (Revenue, USD million, 2014-2025)

  • On-premise

  • Hybrid

  • Cloud

• End-use Outlook (Revenue USD Million, 2014-2025)

  • Small and Medium Enterprises (SME)

  • Large Enterprise

• Regional Outlook (Revenue USD Million, 2014-2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

These are the most frequently asked questions about this report

b. Global retail sourcing and procurement market size was USD 3.7 billion in 2019, and is forecast to rise to USD 4.1 billion by 2020.

b. Global retail sourcing and procurement markets are expected to expand at a compound annual rate of 11.5% between 2017-2025, to reach USD 7.3 billion by 2025.

b. With a 33.0% share in 2019, North America was the dominant market for retail sourcing and procurement. This can be attributed to automation in procurement and sourcing in the areas of cloud, analytics, and BYOD trends.

b. The key players in the retail sourcing market and procurement market are IBM Corporation, SAP SE, and Oracle Corporation.

b. The market growth is being driven by the emergence of cloud technology and internet of things and the increasing adoption of these solutions by different retail businesses around the globe.

Up Market Research published a new report titled “Retail Sourcing And Procurement Market research report which is segmented by Service Type (implementation, training & support, consulting), By Players/Companies IBM Corporation; SAP SE; and Oracle Corporation”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Retail Sourcing And Procurement Market Report Segments:

The market is segmented by Service Type (implementation, training & support, consulting).

Retail Sourcing And Procurement Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Retail Sourcing And Procurement Market

Overview of the regional outlook of the Retail Sourcing And Procurement Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Retail Sourcing And Procurement Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Retail Sourcing And Procurement Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. implementation

                2. training & support

                3. consulting

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Retail Sourcing And Procurement Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Retail Sourcing And Procurement Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.