Procurement Analytics Market Statistics 

Procurement analytics is the process of using quantitative methods to derive actionable insights and outcomes from data. It involves capture and use of data to support fact-based decision making and gaining competitive advantages. Procurement team collects data, process that data so it can generate useful insights and later analyze that data to improve the decision making and this whole process is called as procurement analytics. It helps organizations to increase the cost savings, decrease operating cost and can be used for different purposes such as to create strategy in the most strategic category plans, to evaluate fair market price in order to maximize the savings, in analyzing the consumption pattern which aims to reduce the overall spend, analysis of preferred supplier compliance and in the selection of channel distribution to address savings leakage. 

With the application of robust data analytics, procurement sector is deriving new insights which can further used in negotiations, vendor segmentation, performance management as well as annual purchasing strategy. Procurement department contains a very high amount of data which includes transaction history, expenditure details and others. Use of analytics in procurement data can create better business decision with the help of intelligent argumentation. 

Procurement analytics market scope and structure analysis:

COVID-19 scenario Analysis:

• The unprecedented nature of health crisis has ripple effects on multiple industries such as hospitality, healthcare, consumer electronics, banking and finances and technology industry. This crisis has not only pushed companies to face a new set of challenges but also forced them to alter their business strategies. 
• However, the procurement sector is growing, owing to the fact that procurement can help companies minimize the pandemic’s economic impacts and help other business organizations to grow and help them in performing their operations, which boosts the adoption of procurement analytics.
• In addition, organizations have also started to become more focused and connected with the ecosystem of suppliers, internal customers and external partners. Thus, it is expected that with growth in focus on procurement activities, organizations are majorly focused on their procurement strategies which provide slucrative opportunities for the procurement analytics market.

Top impacting factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis

Factors such as massive amount of procurement data generation in almost every industry vertical along with growth in awareness about benefits of this data such as effective predictions of future supply management, better decision making, and reduced cost expenditure drive growth of the market. In addition, major shift towards the digitization further fuels the growth of the market. However, factors such as data security, Integration issues, and poor analytics capabilities are hindering the growth of the market. Furthermore, the adoption of procurement analytics in the small and medium enterprise is expected to generate multiple opportunity for the market in the upcoming years. 

Growth in adoption of procurement analytics for better decision making 

Data generated through the multiple organizations is huge and this data can be utilized by the procurement analytics in order to make predictions which will thus help to enterprise in order to forecast demand and plan business strategies. In addition to this, procurement analytics uses the historical data, predictive mechanism and risk adverting model and offers various solutions in the sector like source analysis, compliance and policy management, category management in addition to the financial analysis in order to enhance the business productivity. By using the planned strategies and fine decision making, the enterprises would able to take predictive risk and enhance their performance which is driving its adoption among the organizations. 

Rise in adoption of procurement analytics among small and medium enterprises: 

Small and medium enterprises face challenges such as deployment expenditure, on premise procurement analytics & hiring of skilled staff and maintenance of IT teams. However, these challenges can be overcome with adoption of cloud-based procurement analytics solutions as it can help to increase the profit margins and efficiencies. With the utilization of procurement analytics, the SME’s would be able to overcome and enhance procurement channels which will thus lead in the increase of operational efficiency and demand for procurement analytics solutions. These solutions also provides the procurement channel and enable them to make strategic decisions for inventory spend, and supply chain. In addition, it also helps to reduce their operational and capital cost which leads to the rise in investment. Thus, the adoption is expected to increase lucent opportunities for the market in upcoming years. 

Key Segments covered:  

Key benefits of the report:

• This study presents analytical depiction of the global procurement analytics along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the procurement analytics market share.
• The current market is quantitatively analyzed from 2019 to 2027 to highlight the procurement analytics market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides detailed procurement analytics market analysis based on competitive intensity and how the competition will take shape in coming years.