Digital procurement - statistics & facts
In the world of e-commerce, nothing is more complex than procurement in big organizations acquiring goods and services. While companies can purchase and sell on different online channels – corporate websites, e-commerce platforms, marketplaces - procurement software enables them to streamline additional processes like suppliers auctioning and onboarding, contract management, and spend analytics. The efficiency of e-procurement platforms might explain the increase in worldwide sales, the value of which is currently estimated at more than 1.1 trillion U.S dollars.
Placing – and replacing - orders automatically is one of the many features companies use procurement platforms for. Recent surveys showed that professionals valued being able to create reports, streamline e-invoicing, and avoid unauthorized spending. Digitalizing procurement enhances the entire procure-to-pay process companies invest manpower and resources in.
More tailored to the needs and business operations of large enterprises, procurement platforms are going to play a key role in business-to-business digital transactions. E-procurement adoption will mostly depend on services and cutting-edge solutions vendors will be able to provide.
E-procurement adoption
E-procurement sales are an example of EDI-type transactions where orders are placed automatically. That is especially relevant for big organizations requiring large quantities from suppliers. In the European Union, over 25 percent of big enterprises with over 250 employees included EDI-type sales in their operations, while only four percent of small enterprises did the same. Big companies also have a much higher investment capacity in digital procurement, as data from consumer goods and retail companies show.Placing – and replacing - orders automatically is one of the many features companies use procurement platforms for. Recent surveys showed that professionals valued being able to create reports, streamline e-invoicing, and avoid unauthorized spending. Digitalizing procurement enhances the entire procure-to-pay process companies invest manpower and resources in.
What role does AI play?
Procurement software providers have already seen the potential of artificial intelligence and integrated it into their software packages. As a result, a plethora of small vendors launched procurement solutions using generative AI and managed to join a market populated by established tech groups. Among the new opportunities offered by AI, spend analytics is the most mentioned feature – it provides professionals with key insights about spending patterns and unveils opportunities in cost-cutting, thanks to predictive analytics. Besides specific business applications, AI can help procurement departments make better decisions. An outstanding 47 percent of professionals already use AI for this purpose, while one in four chief procurement officers believes AI will further improve decision-making by 2025.More tailored to the needs and business operations of large enterprises, procurement platforms are going to play a key role in business-to-business digital transactions. E-procurement adoption will mostly depend on services and cutting-edge solutions vendors will be able to provide.
