Retail Sourcing and Procurement Market by Offering (Solution [Strategic Sourcing, Supplier Management, Contract Management, Procure-to-Pay, Spend Analysis], Service [Implementation, Training and Support, Consulting]), by Deployment Type (Cloud, On-Premises), by Organization Size (Large Business, Small and Medium Business), by Geography (U.S., Canada, Germany, Italy, France, Spain, U.K., China, India, Japan, South Korea, Brazil, Mexico, U.A.E.) – Global Market Size, Share, Development, Growth and Demand Forecast, 2013–2023

  • Published: November 2018
  • Report Code: IM10805
  • Available Format: PDF
  • Pages: 137

Retail Sourcing and Procurement Market Overview

The global retail sourcing and procurement market was valued at $2,782.2 million in 2017 and is forecasted to witness a CAGR of 11.6% during 2018–2023. Rising demand for centralized procurement, and growing need for increased visibility in supply chain, are the key factors driving the market growth. Besides, the increasing focus on digital transformation would propel the market growth in the coming years.



Based on solution, the retail sourcing and procurement market has been categorized into strategic sourcing, supplier management, contract management, procure-to-pay, and spend analysis. Of these, the market for spend analysis is expected to register the fastest CAGR, during the forecast period. Spend analysis solution offers a detailed cleansing, grouping, categorizing, and analyzing of an organization spend data, which further assists them to scrutinize future expenses and help them devise corporate strategies. Owing to these factors, the market for spend analysis is projected to escalate across the globe.

In terms of services, the retail sourcing and procurement market has been segmented into implementation, training and support, and consulting, wherein the market for implementation held the largest share of about 49% in 2017. Implementing the solutions such as strategic sourcing, contract management, and others require experts and trained service providers, who consolidate various techniques to bring together a proper operational management system to assist an organization. Moreover, implementation is the basic and prior step when deployment of a solution is considered and cannot be casually done without proper know-how.

On the basis of organization size, the retail sourcing and procurement market has been categorized into large businesses and small and medium businesses. Of the two, large businesses held a higher revenue share of more than 60% in 2017, attributing to the fact that the large-sized businesses face more demanding situations and complications regarding the financial and operational activities involved. Such issues can be simplified by procuring retail sourcing solutions for contract management, risk management, corporate strategy making, customer relationship management, and spend analysis, among others. Large businesses are expected to continue holding a larger share through 2023, given their business needs.

Retail Sourcing and Procurement Market Dynamics


One of the key trends noted in retail sourcing and procurement market is automation of procurement services. Procurement services are increasingly being automated owing to greater adoption of mobile computing and cloud-based applications, which are assisting procurement and sourcing processes. Automation in sourcing and procurement is leading to heightened competition in the retail industry due to low entry barrier for small companies. To sustain in the highly competitive market, retailers are increasingly adopting retail sourcing and procurement solutions, as the demand for inventory management and efficient procurement system rises.

Traditionally, procurement systems include processes such as manual data entries, invoice processing, numerous general ledger updates and others, which are time consuming and prone to human error. With developments in process automation, procurement systems have become capable of performing complex tasks with automated software or physical robots (bots).

According to a survey, for purchase-to-pay, around 23% of the organizations have either partially rolled out or are in a pilot phase of adopting robotic process automation (RPA), while the remaining 77% have no immediate plans to adopt RPA. Though, presently, the adoption level of RPA is low, around 45% of purchase-to-pay companies believe it will have high impact on the market in the coming decade.


Digital transformation in the retail industry supply chain to drive the retail sourcing and procurement market. Advancements in digital technologies are revamping the supply chain management and are poised to change the way procurement delivers value to retailers. According to a recent survey, around 84% of procurement businesses believe that digital transformation would essentially change the way services are offered over the next three to five years. With the advent of digital technologies such as artificial intelligence (AI), blockchain, and robotics, there will be increased level of stock visibility for both vendors and retailers and greater transparency. Blockchain enables retailers to gain customer trust by maintaining sourcing and procurement data, chain-of-custody information and supporting autonomous transactions.

For instance, Walmart Inc. is working with IBM Corporation implement blockchain technology for food supply chain tracking. This test resulted in greater transparency and efficiency in supply chain record keeping, while enhancing food safety. Also, it used blockchain technology to trace mangoes from farms to stores which reduced the amount of time spent in tracking from days or weeks to two seconds. Thus, increasing digital transformation in the retail industry is driving retail sourcing and procurement market.


Rapid economic growth in emerging economies such as India and China will present ample of opportunities for sourcing and procurement solution providers. According to World Bank, India’s GDP is estimated to grow at 6.7% in 2017 and further at 7.3% in 2018. While, China’s GDP is estimated to grow at 6.8% and 6.4%, respectively, in 2017 and 2018. Changing demographics, increasing disposable income and urbanization are driving growth in the retail industry in India.

Also, increasing private and foreign player investments in India also propelled the overall growth in retail industry. For instance, Walmart Inc., and GAP Inc. are sourcing their products from India and are shifting towards establishing their own sourcing centers instead of third-party buying centers. Rapid economic growth in emerging economies and increasing disposable income to serve as an opportunity for retail sourcing and procurement vendors.

Retail Sourcing and Procurement Market Competitive Landscape

With increasing digital transformation, the ability to synchronize data across the enterprise is critical for success. Vendors are focusing on delivering connected, cognitive and end-to-end solutions, in order to offer enhanced value to retailers and support autonomous decision-making. Also, the robust growth of e-commerce industry is pushing enterprises to be more agile.

Some of the key players operating in the global retail sourcing and procurement market include Oracle Corporation, Proactis Holdings PLC, Zycus Inc., Ivalua Inc., GT Nexus, JAGGAER, Epicor Software Corporation, SAP SE, JDA Software Group Inc., and IBM Corporation.

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