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Procurement

The Future of Procurement is Predictive: How Technology is Transforming the Procurement Process

February 26, 2024

Blogpost

In the rapid and fiercely competitive business landscape, the future of procurement is predictive and technology is paving the way to transform it. Nevertheless, conventional procurement processes often fail to adapt to shifting market dynamics. This is precisely where technological advancements can have a profound impact. Embracing technology empowers the procurement process to evolve and make well-informed decisions based on data-driven insights. This blog delves into the transformative role of technology, market insights, and what difference it can make in the procurement landscape.

Technologies Transforming the Procurement Landscape

Some of the key technologies transforming the procurement landscape are mentioned below:

  • Optimized E-Procurement Systems

E-procurement systems have revolutionized the traditional procurement processes by automating tasks such as vendor sourcing, purchasing, and invoicing. These optimized digital platforms enhance speed, accuracy, and transparency in procurement, facilitating real-time collaboration between buyers and suppliers.

  • Cloud-Based Procurement Software

Another technological advancement that is transforming the procurement process is cloud-based procurement software. This cutting-edge technology empowers businesses to digitize their procurement processes effortlessly. Cloud-based Procurement software is different from E-procurement systems, as it emphasizes software deployment via the cloud, offering broader procurement functionalities. While E-procurement focuses on electronically managing the entire procurement process.

  • Artificial Intelligence (AI)

With the help of AI technology, we can make better and faster decisions related to spending, suppliers, and risks. Tasks that were once considered difficult to handle with vast amounts of data can now be accomplished with ease. Marketresearch.biz's 2023 report analyzes  AI in the Procurement Market, forecasting economic and profitability trends.

The forecasted market size for AI in Procurement is estimated to reach $2097 M and is predicted to rise at the CAGR rate of 33% till 2032.

Market Size Estimated in Dollars

$2097

Growth Rate at CAGR

33%

Market Size at Current Year

$173

Market Growth Trends for Years

2022-2032

  • Robotic Process Automation (RPA)

Robotic Process Automation (RPA) has emerged as a game-changer in improving efficiency within procurement processes. This innovative technology utilizes software robots, also known as "bots," to automate rule-based tasks that are traditionally handled by human employees. They can help in order processing, invoice handling, and vendor onboarding management.

  • Internet of Things (IoT)

Finally, the last technological advancement, the Internet of Things (IoT) has a key role to play in optimizing supply chains by enabling increased visibility, and data-driven decision-making. IoT in supply chain management involves the use of sensors, and data analytics to gather real-time information and monitor processes.

How can E-Market Place be beneficial for E-Procurement?

E-MarketPlaces, also known as online marketplaces, are platforms that connect multiple buyers and sellers, enabling them to conduct transactions and exchange goods or services. Here's how e-marketplaces are rising and how they can benefit e-procurement:

  • Global Reach and Access

E-marketplaces provide businesses with access to a vast network of suppliers and vendors from around the world. This global reach expands the pool of potential suppliers, allowing businesses to find the best deals, negotiate prices, and source high-quality products.

  • Transparency

E-marketplaces offer real-time access to information about suppliers, products, pricing, and order status. This transparency enhances decision-making by providing buyers with comprehensive data and insights to evaluate suppliers and make informed choices.

  • Supplier Diversity

E-marketplaces enable businesses to engage with a diverse range of suppliers, including small and medium-sized enterprises (SMEs) that might not have been easily accessible through traditional procurement processes.

  • Rise in E-Market Sales

E-Marketplaces offer benefits for buyers and sellers in B2C commerce, with a promising outlook as they gain more of the expanding e-commerce market. Online sales surged, matching a decade's growth in just one year (US graph below). The Finextra Report 2023 gives a glimpse of the market insight.

B2C online sales via marketplaces are forecast to increase by a 14% CAGR to USD 4.7 trillion by 2025, with marketplaces capturing a 61% share of total B2C sales.

A Surge in Global Procurement Software Market Size

Global procurement software refers to specialized technology solutions designed to streamline and optimize the procurement processes of organizations operating on a global scale. As the global procurement software market continues to evolve, businesses that adopt these transformative technologies will be better equipped to navigate the challenges of a dynamic business landscape. The Data Bridge market report shows an expert analysis of the software market size.

The Global Procurement Software market is expected to account for USD 14977.19 Million by 2029.

The future of procurement is undoubtedly predictive, as technology-driven solutions continue to integrate into the procurement process. By implementing Artificial intelligence, IoT, Robotic Process Automation, and cloud-based solutions, procurement professionals can improve their decision-making capabilities, predict market insights, and build more robust and efficient supply chains. As technology continues to advance, we can expect even more transformative changes in procurement processes in the years to come.

Partner with Prismecs for Procurement and Supply Chain Excellence

Prismecs understands the significance of supply chain efficiency and the integration of cutting-edge technology in the Procurement process. By optimizing the supply chain and employing data-driven maintenance strategies in procurement, we help companies achieve operational excellence and supply chain expertise. We officially launched eINDUSTRIFY, our B2B e-commerce platform, offering a hassle-free solution to all your procurement needs.

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