The global procurement software market is growing by leaps and bounds, with a 10 percent compound annual growth rate projected for the industry between 2019 and 2025. Sweeping changes are expected during this period, with new technologies and upgrades fueling the growth of the market. With that in mind, here are six reasons why the growth of the procurement software industry is assured to save money for you and your company.
1. Procurement software is designed with savings in mind.
By its very nature, procurement software is designed to save customers money, so the more it proliferates, the greater the overall savings. Between invoice comparisons, electronic bill payments, electronic billing requests, and a host of other processes, procurement software is utilized by companies to increase productivity, reduce external costs, control expenditures and improve process efficiency.
2. Mobile applications increase access to money-saving systems.
The near-ubiquitous nature of smartphones, paired with the ever-increasing number of procurement software developers with publicly-available mobile apps, results in business owners having greater access than ever to the money-saving benefits of procurement software. This fosters greater familiarity with the programs and a corresponding increase in savings.
3. Procurement software savings are easy to spot.
According to a recent study with the MBTA, customers engaging with procurement software are realizing considerable and measurable savings. The MBTA has received over 36,000 bids on over 14,000 RFQs through the platform since they started using Fairmarkit. Through those bids, the organization has saved over $5M with an average monthly savings of over $100K. With savings like these at stake, the benefits of procurement software are absolutely worth investigating.
4. Inefficient spend-analysis software is being phased out.
Outdated spend-analysis methods and software are widely regarded as error prone, while the latest methods are implementing cloud-based solutions that include AI. Those providers that are unable to adapt to the new intelligence landscape are expected to fall by the wayside, leaving only the most efficient and helpful procurement software tools available for use.
5. Procurement software has optimized all varieties of spending.
Thanks to advancements in the quality of procurement software, all levels of spending can now be optimized. For example, tail spend - the purchasing of essential items that accounts for only 20 percent of a company’s purchases, but also dictate 80 percent of vendor interactions - has often been an entirely disregarded by procurement departments because of the poor ROI associated with managing it. However, software devoted entirely to tail spend, such as the software offered by Fairmarkit, makes it easier for business owners and procurement teams to enjoy savings as a result of tail spend management.
6. VEAs and Chatbots are making procurement easier.
Navigating through procurement channels can be a daunting process, but software developers are addressing this issue through the integration of virtual employee assistants and chatbots. These additions to procurement software systems are designed to walk users through the procurement process from start to finish, all while these virtual assistants make money-saving suggestions. This will result in increased savings for users of the software that features these helpful inclusions.