Global Sourcing, Procurement and Vendor Management (SPVM) Market Size Likely to Surpass at a CAGR of 12.4% By 2033

As per the current market research conducted by the CMI Team, the global Sourcing, Procurement and Vendor Management SPVM Market size is expected to record a CAGR of 12.4% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 182.2 billion. By 2032, the valuation is anticipated to reach USD 358.2 billion.

Sourcing, Procurement, and Vendor Management SPVM Market: Growth Factors and Dynamics

• Digital Transformation: Increasing adoption of digital technologies like AI, machine learning, and automation optimizes procurement processes, reducing manual efforts and enhancing efficiency.

• Globalization: Expanding international trade drives demand for efficient procurement and vendor management to ensure seamless cross-border supply chains.

• Supply Chain Resilience: Recent disruptions highlight the need for robust vendor risk assessment and management strategies, pushing organizations to prioritize supply chain resilience.

• Cost Optimization: SPVM solutions enable businesses to strategically source goods and services, leading to cost savings and improved financial performance.

• Data-Driven Decision Making: Analytics and big data empower organizations to make informed decisions, forecast demand accurately, and optimize sourcing strategies.

• Sustainability Focus: Growing emphasis on ethical and sustainable sourcing drives the adoption of SPVM solutions that facilitate traceability and compliance with environmental and social standards.

• Strategic Supplier Relationships: Organizations are recognizing the value of cultivating strong partnerships with vendors to foster innovation, reliability, and mutual growth.

• Cloud-Based Solutions: Cloud platforms enhance accessibility, scalability, and collaboration, enabling organizations to streamline SPVM processes and adapt to changing business needs.

• Regulatory Compliance: Evolving regulations related to data privacy, trade, and sourcing practices necessitate robust SPVM strategies to ensure compliance and mitigate legal risks.

• Emerging Markets: Rapid economic growth in emerging markets fuels demand for SPVM solutions, especially as local businesses seek to optimize procurement processes and manage vendor relationships.

• Remote Workforce: The rise of remote work drives the adoption of digital SPVM solutions that enable seamless collaboration and communication among dispersed teams.

• Innovation and Competition: Constant technological advancements and the entry of innovative startups intensify competition, compelling established players to continuously enhance their offerings.

Sourcing, Procurement, and Vendor Management SPVM Market: Partnership and Acquisitions

• In 2022, Coupa Software partnered with Amazon Business to offer a cloud-based procurement solution that combines the best of both companies’ offerings.

• In 2022, IBM partnered with SAP to offer a joint procurement solution that combines the strengths of IBM’s cloud-based procurement platform and SAP’s supply chain management software.

Report Scope

Sourcing, Procurement, and Vendor Management SPVM Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the Sourcing, Procurement, and Vendor Management (SPVM) Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Supply Chain Disruptions: Lockdowns and restrictions disrupted global supply chains, emphasizing the need for resilient SPVM strategies to mitigate disruptions.

• Vendor Risk Management: Organizations intensified vendor risk assessments to identify vulnerable suppliers and ensure the continuity of critical supplies.

• Remote Work Adoption: Remote work accelerated the adoption of digital SPVM tools, enabling remote collaboration, e-procurement, and contract management.

• Demand Volatility: Fluctuating demand patterns required agile sourcing and procurement strategies to prevent overstocking or shortages.

• Digital Transformation: Organizations fast-tracked digital transformation, adopting cloud-based procurement platforms for flexibility and remote access.

• Supplier Diversity: Pandemic-related shortages emphasized the importance of supplier diversification and local sourcing for supply chain resilience.

• Cost Optimization: Financial uncertainty prompted cost optimization efforts, driving organizations to streamline procurement processes and negotiate better terms with vendors.

• Strategic Partnerships: Collaboration with key vendors became essential to ensure reliable supply, fostering closer and more strategic relationships.

• Sustainability Focus: The crisis highlighted the significance of sustainable sourcing practices, encouraging organizations to prioritize environmentally responsible vendors.

• Scenario Planning: Organizations emphasized scenario planning in procurement to prepare for future disruptions and build agile sourcing strategies.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Sourcing, Procurement, and Vendor Management (SPVM) Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Sourcing, Procurement and Vendor Management SPVM Market:

• SAP Ariba
• Coupa Software
• Jaggaer
• Ivalua
• GEP Worldwide
• Basware Corporation
• Oracle Procurement Cloud
• Determine
• SYNERTRADE
• BravoSolution
• Others

The Sourcing, Procurement and Vendor Management SPVM Market is segmented as follows:

By Deployment Type

• On-premise
• Cloud

By Organization Size

• Small and Medium-sized enterprises (SMEs)
• Large enterprises
• Patented

By Industry

• Manufacturing
• IT and telecom
• Retail

By Solution

• Software
• Services
• Consulting

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America