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Add to CartGlobal Retail Sourcing and Procurement Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Deployment Type;
On-Premise and Cloud.By Service;
Implementation, Consulting, Training, and SupportBy Solution Type;
Strategic Sourcing, Supplier Management, Contract Management, Procure-to-pay, and Spend Analysis.By Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031).Introduction
Global Retail Sourcing and Procurement Market (USD Million), 2021 - 2031
In the year 2024, the Global Retail Sourcing and Procurement Market was valued at USD 2,308.54 million. The size of this market is expected to increase to USD 5,103.46 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 12.0%.
The retail sourcing and procurement market is positioned for substantial growth, driven by a projected Compound Annual Growth over the forecast period. This anticipated expansion is chiefly propelled by the increasing trend towards centralization in procurement processes, underpinned by the adoption of advanced technologies and storage systems. Notably, the integration of sophisticated cloud storage solutions has revolutionized data visibility, granting retailers greater control over their procurement strategies and facilitating streamlined operations for heightened efficiency.
Amidst this backdrop, companies operating across the retail sector are actively pursuing avenues to curtail operational costs. Embracing cutting-edge technologies such as artificial intelligence, deep learning, and blockchain presents promising opportunities to automate sourcing and procurement workflows. For example, harnessing Radio-Frequency Identification (RFID) chips enables seamless inventory tracking, fortifying inventory management practices and curbing instances of stockouts effectively.
It is imperative to recognize that transitioning between sourcing methods or adopting alternative technologies can present formidable challenges. Such endeavors necessitate meticulous planning and strategic decision-making to navigate potential complexities successfully. Given the resource-intensive nature of these transitions, thorough evaluation and consideration of various factors are indispensable to ensure seamless implementation. This underscores the critical significance of prudent decision-making and comprehensive planning in optimizing retail sourcing and procurement processes to achieve sustained efficiency and cost-effectiveness.
Global Retail Sourcing and Procurement Market Recent Developments
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In February 2023, Coupa Software launched a sustainability-centric procurement platform, enabling businesses to prioritize eco-friendly sourcing practices in line with regulatory demands
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In November 2023, SAP introduced enhancements to its Ariba Network, integrating AI-driven procurement analytics to help companies optimize global sourcing, addressing supply chain resilience challenges
Segment Analysis
The retail sourcing and procurement market, segmented by Deployment type into On-Premise and Cloud, reflects the industry's evolving technological landscape. With the emergence of advanced cloud-based solutions, businesses are increasingly shifting towards cloud deployment for its scalability, flexibility, and cost-effectiveness. On-premise solutions, while still prevalent, are witnessing a gradual decline as organizations seek to leverage the benefits of cloud-based procurement platforms for enhanced accessibility, real-time data insights, and seamless collaboration across geographically dispersed teams.
Within the realm of solution types—Strategic Sourcing, Supplier Management, Contract Management, Procure-to-Pay, and Spend Analysis—the market exhibits a diverse array of offerings tailored to address distinct procurement challenges. Strategic Sourcing solutions enable businesses to optimize supplier selection and negotiate favorable terms, while Supplier Management platforms facilitate the monitoring and evaluation of supplier performance to ensure compliance and mitigate risks. Contract Management solutions streamline contract lifecycle management processes, while Procure-to-Pay solutions automate and streamline the entire procurement process, from requisition to payment. Additionally, Spend Analysis solutions provide valuable insights into expenditure patterns, empowering organizations to make data-driven decisions and optimize procurement strategies.
The retail sourcing and procurement market spans across key regions North America, Europe, Asia Pacific, Middle East and Africa, and Latin America each characterized by unique market dynamics and growth opportunities. North America, as a mature market, boasts advanced procurement infrastructure and a robust regulatory framework, driving innovation and adoption of cutting-edge procurement solutions. In contrast, the Asia Pacific region presents lucrative growth prospects fueled by rapid industrialization, rising disposable incomes, and increasing investments in digital transformation initiatives. Meanwhile, Europe remains a key player in the global procurement landscape, driven by stringent regulatory compliance requirements and a strong focus on sustainability. The Middle East and Africa, along with Latin America, exhibit untapped potential for market expansion, driven by burgeoning e-commerce sectors, growing consumer demand, and efforts to modernize procurement practices. Through a comprehensive understanding of deployment types, solution offerings, and geographic, stakeholders can effectively navigate the evolving retail sourcing and procurement landscape to capitalize on emerging opportunities and drive sustainable growth.
Global Retail Sourcing and Procurement Segment Analysis
In this report, the Global Retail Sourcing and Procurement Market has been segmented by Deployment Type, Service, Solution Type and Geography.
Global Retail Sourcing and Procurement Market, Segmentation by Deployment Type
The Global Retail Sourcing and Procurement Market has been segmented by Deployment Type into On-Premise and Cloud.
In the deployment segment, on-premise solutions have historically held the largest market share, representing a significant portion of total revenue. The appeal of on-premise procurement software lies in its ability to run software at remote locations, catering to a wide range of business needs. However, the substantial investment in time and financial resources required for implementation has posed challenges, particularly for small and medium-sized enterprises, hindering their adoption rates.
Cloud-based procurement and sourcing software, on the other hand, are poised for substantial growth, exhibiting the highest Compound Annual Growth Rate (CAGR) among deployment options. Procurement cloud solutions offer streamlined source-to-pay processes, leveraging social collaboration and automation to control costs effectively and achieve higher profit margins. Furthermore, cloud-based software provides seamless accessibility without additional IT efforts, making it an attractive option for businesses seeking agility and scalability. With regular upgrades and maintenance, cloud-based procurement software is expected to witness continued growth in the foreseeable future.
Many enterprises are now embracing contemporary tracking strategies, such as establishing shared service centers and outsourcing business and IT processes to third-party providers. Hybrid sourcing strategies, which combine internal and external sourcing engagements, have become increasingly popular due to their ability to enhance performance, reduce overhead costs in internal sourcing functions, and foster better relationships with external vendors. This hybrid approach has transformed internal sourcing functions into efficient sourcing units, driving growth within the segment, particularly among retailers.
Global Retail Sourcing and Procurement Market, Segmentation by Service
The Global Retail Sourcing and Procurement Market has been segmented by Service into Implementation, Consulting, Training, and Support
The Global Retail Sourcing and Procurement Market is broadly segmented based on service into four key categories: Implementation, Consulting, Training, and Support. Each of these service segments plays a crucial role in optimizing procurement operations for retailers worldwide. As companies strive to streamline their supply chains and procurement processes, the demand for these services continues to rise, driven by increasing digital transformation, automation, and efficiency requirements.
Implementation services are vital for organizations that seek to integrate advanced sourcing and procurement solutions into their existing operations. These services typically involve the deployment of software platforms, procurement management tools, and supplier relationship management systems. Implementation providers work closely with retail businesses to ensure seamless integration of procurement solutions with enterprise resource planning (ERP) systems, cloud-based platforms, and data analytics tools. Given the complexity of retail supply chains, effective implementation ensures that procurement workflows are automated, transparent, and efficient. Many retailers leverage third-party implementation partners to minimize operational disruptions and maximize the benefits of procurement technology.
Consulting services focus on providing strategic advice to retailers to optimize their procurement processes. Retail businesses often seek expert guidance to improve cost efficiencies, enhance supplier relationships, and reduce risks associated with sourcing. Consulting firms analyze existing procurement strategies, identify gaps, and recommend best practices for supplier negotiations, contract management, and procurement analytics. These services are particularly beneficial for large retailers with extensive supply chain networks, as they need to manage multiple vendors, comply with regulatory requirements, and ensure sustainability in sourcing. Procurement consulting services also help retailers navigate emerging challenges such as supply chain disruptions, geopolitical risks, and fluctuations in raw material costs.
Training services are crucial for equipping retail procurement teams with the necessary skills and knowledge to effectively manage sourcing and procurement operations. As procurement technologies evolve, employees require ongoing training to stay updated on the latest tools, methodologies, and compliance requirements. Training services typically include workshops, online courses, and hands-on training sessions that cover areas such as e-procurement, contract lifecycle management, vendor management, and data-driven decision-making. Retailers that invest in training services benefit from improved employee productivity, reduced procurement errors, and enhanced decision-making capabilities. Additionally, training ensures that procurement teams adhere to regulatory standards and best practices, reducing risks associated with non-compliance.
Support services play a critical role in ensuring the continuous and efficient operation of procurement systems. These services include technical support, troubleshooting, software updates, and system maintenance. Retailers rely on support services to resolve procurement system issues, prevent downtime, and ensure seamless workflow operations. With the increasing adoption of cloud-based procurement solutions, support services have become even more essential, as businesses require real-time assistance to address software glitches, security concerns, and integration challenges. Many vendors offer 24/7 support services to help retailers manage procurement operations across multiple geographies and time zones.
Global Retail Sourcing and Procurement Market, Segmentation by Solution Type
The Global Retail Sourcing and Procurement Market has been segmented by Solution Type into Strategic Sourcing, Supplier Managemen, Contract Management, Procure-to-pay and Spend Analysis.
Strategic sourcing stands out as the largest sourcing and procurement solution segment, commanding approximately 21% of the overall volume. Its ability to consolidate purchasing power and secure optimal value in the marketplace is a key driver expected to fuel its future growth. Strategic sourcing streamlines the procurement process by formalizing the gathering, analysis, and utilization of spend information, thereby enhancing efficiencies for retail businesses of all sizes. By fostering long-term partnerships and analyzing high-volume purchases, strategic sourcing enables businesses to secure quality products and services at lower costs, significantly impacting their cost structures.
The second-largest solution category, contributing over 16% of total revenue. The increasing awareness of potential savings, particularly in European and Asia Pacific regions, is anticipated to drive the growth of spend analysis solutions in the coming years. These tools offer transparency into spend data, empowering category managers to identify new saving opportunities and allocate resources more effectively for competitive sourcing. Moreover, spend analysis ensures compliance savings and facilitates the management of supplier portfolios, reinforcing the appeal of this solution for retail businesses seeking to optimize their procurement processes and drive cost efficiencies.
Global Retail Sourcing and Procurement Market, Segmentation by Geography
In this report, the Global Retail Sourcing and Procurement Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Retail Sourcing and Procurement Market Share (%), by Geographical Region, 2024
North America emerged as the leading market for retail sourcing and procurement, capturing approximately 33% of the total market revenue. The region's dominance is attributed to the increasing adoption of automation in procurement and sourcing processes, coupled with ongoing technological advancements in analytics, cloud computing, and Bring Your Own Device (BYOD) trends. These developments are poised to drive significant growth in the market over the next several years, as businesses in North America leverage innovative technologies to streamline operations and enhance efficiency.
Asia Pacific is forecasted to experience substantial growth, with a projected Compound Annual Growth Rate (CAGR) of 12.9% within the forecast period. This growth trajectory is fueled by the exponential expansion of retail businesses in the region over recent years. Emerging economies such as India, China, and Japan have witnessed robust economic growth, accompanied by a burgeoning technology user base and rapid infrastructure development. These factors collectively contribute to the burgeoning demand for retail sourcing and procurement solutions, positioning Asia Pacific as a key growth engine in the global market landscape.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Retail Sourcing and Procurement Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunities
Drivers:
- Technological Advancements
- Focus on Cost Reduction and Efficiency
- Globalization and Supply Chain Complexity
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Demand for Advanced Retail Sourcing Solutions: The increasing demand for advanced retail sourcing solutions stems from the evolving needs of businesses to streamline their procurement processes and gain a competitive edge in the market. As businesses face growing complexities in sourcing goods and services, they seek innovative solutions that offer greater efficiency, transparency, and agility. Advanced retail sourcing solutions leverage cutting-edge technologies such as artificial intelligence, machine learning, and big data analytics to enhance decision-making, optimize supplier relationships, and drive cost savings. These solutions enable businesses to automate repetitive tasks, identify cost-saving opportunities, and mitigate risks, thereby improving overall procurement performance.
In an increasingly digital and globalized marketplace, advanced retail sourcing solutions empower businesses to adapt to changing market dynamics and consumer preferences swiftly. By providing real-time insights into market trends, supplier performance, and procurement risks, these solutions enable businesses to make proactive and informed decisions. Furthermore, advanced sourcing solutions facilitate collaboration and communication among stakeholders across the supply chain, fostering stronger partnerships and enhancing supply chain resilience. Overall, the demand for advanced retail sourcing solutions is driven by the imperative for businesses to stay competitive, agile, and responsive in today's dynamic business environment.
Restraints:
- High Initial Investment Costs
- Complex Implementation Processes
- Resistance to Change
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Challenges of Vendor Lock-In: Vendor lock-in represents a significant challenge in the retail sourcing and procurement market, constraining businesses' flexibility and inhibiting innovation. This phenomenon occurs when a company becomes excessively reliant on a single vendor for its sourcing and procurement solutions, making it difficult to switch to alternative providers or technologies. Vendor lock-in can occur due to various factors, including proprietary software, contractual obligations, or dependencies on specialized services offered by a particular vendor. As a result, businesses may find themselves trapped in long-term agreements or facing substantial switching costs if they attempt to transition to alternative solutions. This lack of vendor flexibility can impede a company's ability to adapt to changing market conditions, integrate new technologies, or negotiate favorable terms, ultimately hindering its competitiveness and agility in the retail sector.
Vendor lock-in poses risks related to dependency on a single vendor for critical business operations. In the event of service disruptions, quality issues, or changes in vendor policies, businesses may experience significant disruptions to their sourcing and procurement processes, impacting supply chain efficiency and customer satisfaction. Additionally, vendor lock-in can limit opportunities for innovation and hinder strategic initiatives, as businesses may be hesitant to explore new solutions or technologies for fear of disrupting existing vendor relationships. To mitigate the challenges of vendor lock-in, businesses should prioritize vendor diversification, negotiate flexible contracts, and adopt open standards and interoperable solutions that facilitate easier integration and migration between vendors.
Opportunities:
- Integration of Advanced Technologies
- Expansion of E-Commerce
- Focus on Sustainability
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Globalization and Supply Chain Optimization: Globalization and supply chain optimization present significant opportunities for the retail sourcing and procurement market. As businesses expand their operations internationally, there is a growing need to source products from various regions worldwide. This necessitates the development of efficient supply chains that can navigate complexities such as diverse regulations, transportation logistics, and cultural nuances. Retail sourcing and procurement solutions play a crucial role in optimizing these supply chains by providing visibility, transparency, and control over sourcing processes. By leveraging technology and data analytics, businesses can streamline procurement operations, identify cost-saving opportunities, and mitigate risks associated with global sourcing.
Supply chain optimization is essential for enhancing operational efficiency and agility in response to changing market dynamics. Retailers must continuously evaluate and optimize their supply chains to adapt to shifting consumer preferences, market trends, and competitive pressures. Procurement solutions enable businesses to optimize inventory levels, reduce lead times, and enhance collaboration with suppliers, ultimately improving the overall efficiency and resilience of the supply chain. Moreover, by optimizing the supply chain, retailers can better meet customer demands, reduce costs, and gain a competitive edge in the global marketplace.
Competitive Landscape Analysis
Key players in Global Retail Sourcing and Procurement Market include
- Kinaxis
- Proactis Holdings Plc
- Coupa Software
- HighJump Software
- Basware Corporation
- SAP SE
- Oracle Corporation
- IBM Corporation
- Epicor Software Corporation
- JDA Software Group, Inc.
- JAGGAER , Inc.
- Infor Nexus and Zycus Inc.
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Deployment Type
- Market Snapshot, By Service
- Market Snapshot, By Solution Type
- Market Snapshot, By Region
- Global Retail Sourcing and Procurement Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Technological Advancements
- Focus on Cost Reduction and Efficiency
- Globalization and Supply Chain Complexity
- Demand for Advanced Retail Sourcing Solutions
- Restraints
- High Initial Investment Costs
- Complex Implementation Processes
- Resistance to Change
- Challenges of Vendor Lock-In
- Opportunities
- Integration of Advanced Technologies
- Expansion of E-Commerce
- Focus on Sustainability
- Globalization and Supply Chain Optimization
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Retail Sourcing and Procurement Market, By Deployment Type, 2021 - 2031 (USD Million)
- On-Premise
- Cloud
- Global Retail Sourcing and Procurement Market, By Service, 2021 - 2031 (USD Million)
- Implementation
- Consulting
- Training
- Support
- Global Retail Sourcing and Procurement Market, By Solution Type, 2021 - 2031 (USD Million)
- Strategic Sourcing
- Supplier Managemen
- Contract Management
- Procure-to-pay
- Spend Analysis
- Global Retail Sourcing and Procurement Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Retail Sourcing and Procurement Market, By Deployment Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Kinaxis
- Proactis Holdings Plc
- Coupa Software
- HighJump Software
- Basware Corporation
- SAP SE
- Oracle Corporation
- IBM Corporation
- Epicor Software Corporation
- JDA Software Group, Inc.
- JAGGAER , Inc.
- Infor Nexus
- Zycus Inc.
- Company Profiles
- Analyst Views
- Future Outlook of the Market