Major Procurement Statistics You Need to Know Now
Source: https://unsplash.com/photos/FlPc9_VocJ4
For procurement professionals, staying up to date on the latest procurement statistics is essential. After all, knowing where the industry is headed will help you make better decisions for your own business.
That's why we've put together a list of some of the most important procurement stats you need to know now. Keep reading to learn more.
Procurement Software
The global procurement software market will be worth $9.5 billion globally by 2028, according to a report by Verified Market Research.
By the end of 2022, the market could even exceed the predictions, as there is a greater need than ever to manage supply chain risks, optimize cash flow, and ensure sustainable value is delivered to the business.
Blockchain Technology
Blockchain—also known as Distributed Ledger Technology (DLT)—is a framework that stores transactional data in the form of digital "blocks" and shares it through a network connected through peer-to-peer nodes. In the procurement industry, blockchain technology could increase supply chain transparency and help to keep sensitive records secure. This would minimize interruptions and provide a definitive service to the customer.
Gartner predicts that 80% of supply chain blockchain activities will remain in the pilot stage through 2022. Nonetheless, the technology is expected to be a major advancement for procurement in the coming years.
Artificial Intelligence
Artificial Intelligence plays a significant role in improving and revolutionizing organizations all over the world. It's applicable in almost every department of the business, from marketing and sales to operations and procurement.
According to Statista, global revenues from the AI software market are expected to reach $126 billion by 2025.
AI software products vary in their design. However, most of them are built to automate and expedite tedious processes while also providing insights based on substantial and complicated data sets.
In procurement, AI is mainly being deployed for applications related to contract management, spend analytics, and supplier data management.
Digitization
2022 will be an unprecedented year for digitization in procurement and the supply chain. However, it will also represent a continuation of ongoing changes from paper-based processes to paperless ones.
Conventional, paper-based procurement procedures are no longer manageable in the fast-paced world of businesses. Supply chain disruptions must be dealt with swiftly and can’t be compounded by manual processes.
Of course, almost every discussion on the future of procurement revolves around technology.
Technology was the second most-cited priority among all the supply chain respondents in Gartner’s 2021 "CEO and Senior Business Executive Survey". This represented a 26% bump from just one year ago.
Furthermore, according to the "2021 Key Issues" report by The Hackett Group, 74% of organizations report having a current initiative underway to enhance and further develop data, insight, and analytics capabilities.
Finally, Gartner predicts that 50% of traditional spend analysis and procurement systems will be replaced by AI-driven, cloud-based purchasing software in 2022. This represents a significant shift in digitization from previous years.
Follow the Latest Procurement Trends
To learn more about the latest trends in procurement, don’t miss the next ProcureCon Indirect East conference. It will occur from September 12th to 14th, 2022, at the Omni Orlando Resort at ChampionsGate in Florida.
Download the agenda today