MARCH 20239function of a company coupled with technology. A myriad of firms depend and rely on digital technology to accomplish procurement and sourcing functions as well as track payments and purchases. The application of disruptive technologies to allow the automation of transactional procurement is Digital procurement. Not just that, it further helps processes such as strategic sourcing in becoming predictive and supplier management in becoming proactive, ultimately resulting in the reduction of operational costs. Most of the procurement as service providers, intending to ensure transparency in the process are providing reporting portal to their consumers.A burgeoning need for enhancing procurement function, along with rising penetration of advanced technologies across various industry verticals, is predicted to bolster the market growth. Owing to a highly competitive environment, the supply chains across the globe are renovating and modernizing processes to increase productivity and enhance business operations.Since the supply chain is the core element/component in the manufacturing industry, it is expected to not only drive high demand for procurement as a service function but also maintain market competitiveness.Advent of Customized OfferingsThe rising awareness of the procurement process among organizations has grown to a huge number over the past years. Furthermore, with the advent of customized offerings, various service providers are into plans of shifting their business offerings to the `as-a-service' model.As consumers in their respective businesses become more aware of advanced procurement functions, they are expected to search for providers who offer robust procurement service models. Some of the famous Procurement technology vendors that include Tradeshift and SAP are in the process of building individual suppliers network, and also procure-to-pay and e-Procurement solutions. Therefore, consumers/users can not only rapidly deploy e-Procurement solutions but also gain benefits by reducing time to market the products. "A manufacturing company may spend 70 percent of its revenue on purchases from outside suppliers, whereas a non-manufacturing company typically spends 40 percent of its revenue on outside suppliers. So, the importance of procurement management in the sourcing of goods and services can greatly impact cost and profit margins for an organization", said Dr. Tobias Schoenherr, Hoagland-Metzler Endowed Professor in Purchasing and SCM at Michigan State University's Eli Broad College of Business. The manufacturing industry vertical is anticipated to hold the largest share in this market in the near future. While companies that are into manufacturing must produce higher quality products at lower prices, advanced features, and lesser production time, they should also maintain market presence and manage costs effectively and efficiently. Some of the famous Procurement technology vendors that include Tradeshift and SAP are in the process of building individual suppliers network, and also procure-to-pay and e-Procurement solutions
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