PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1454087
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1454087
According to Stratistics MRC, the Global Retail Sourcing & Procurement Market is accounted for $6.43 billion in 2023 and is expected to reach $17.5 billion by 2030 growing at a CAGR of 15.4% during the forecast period. Retail sourcing and procurement is the process through which retail businesses acquire goods and services from suppliers to meet customer demand. It involves identifying reliable suppliers, negotiating contracts, and managing relationships to ensure the timely and cost-effective delivery of products. Effective retail sourcing and procurement strategies aim to optimize costs, maintain product quality, and minimize supply chain disruptions.
According to NASSCOM's (National Association of Software & Services Companies) in 2021, India's technology sector reached $194 billion estimating a 2.3% YoY increase on the back of rapid digital transformation and adoption in the country.
Data-driven decisions making
Data-driven decisions enable retailers to forecast demand more accurately, ensuring the right inventory levels and reducing stockouts or overstock situations. Moreover, it facilitates the identification of optimal sourcing channels and suppliers based on factors such as pricing, quality, and lead times. Data-driven decision-making enhances agility and responsiveness in the face of changing market conditions or disruptions, allowing retailers to adapt quickly and make informed decisions.
Supply chain disruptions
Supply chain disruptions pose a significant restraint in the retail sourcing and procurement market, impacting retailers' ability to efficiently source and deliver products to meet customer demand. These disruptions can arise from various factors, such as natural disasters, geopolitical tensions, labor strikes, or transportation issues. When supply chains are disrupted, retailers may face delays in receiving goods, shortages of inventory, increased costs for expedited shipping or sourcing from alternative suppliers, and difficulties in maintaining consistent product quality.
Technological advancements
Advances in technology, such as e-commerce platforms, supply chain management software, and data analytics tools, have transformed the retail sourcing and procurement landscape. These technologies enable retailers to streamline procurement processes, improve supplier collaboration, enhance visibility into the supply chain, and make data-driven decisions. The adoption of innovative technologies is a key driver of growth and efficiency in the retail sourcing and procurement market.
Shift in consumer preferences
As consumers' tastes, lifestyle choices, and shopping behaviours evolve, retailers face the challenge of accurately anticipating and meeting changing demand patterns. Additionally, rapidly changing preferences may require retailers to source new products or adjust existing assortments, potentially leading to supplier relationship challenges and increased sourcing costs. As a result, a shift in consumer preferences is a significant factor limiting market expansion.
Covid-19 Impact
The COVID-19 pandemic had a profound impact on the retail sourcing and procurement market. Lockdowns, travel restrictions, and factory closures disrupted manufacturing operations, leading to supply chain disruptions and shortages of essential goods. Retailers faced challenges in sourcing products as demand surged for certain items while plummeting for others, resulting in imbalances and inventory management issues. Additionally, health and safety concerns prompted retailers to prioritize ethical sourcing and compliance with health regulations, impacting procurement practices.
The cloud segment is expected to be the largest during the forecast period
The cloud segment is estimated to hold the largest share. Cloud-based solutions offer a flexible and scalable alternative to traditional on-premise software, allowing retailers to access sourcing and procurement tools and data remotely over the internet. They eliminate the need for costly hardware investments and infrastructure maintenance as the software is hosted and maintained by third-party providers. This results in lower upfront costs and reduced IT overhead, making cloud solutions particularly attractive to small and medium-sized retailers.
The e-commerce segment is expected to have the highest CAGR during the forecast period
The e-commerce segment is anticipated to have lucrative growth during the forecast period. It enables them to efficiently discover new suppliers, compare prices, and negotiate contracts remotely, thus streamlining the procurement process and reducing lead times. Additionally, e-commerce platforms often incorporate advanced analytics tools that allow retailers to gather insights into market trends, supplier performance, and consumer preferences, facilitating data-driven decision-making. Moreover, e-commerce facilitates seamless transactions, enabling retailers to place orders and manage procurement activities with greater speed and convenience.
North America commanded the largest market share during the extrapolated period. With a highly developed retail sector comprising both traditional brick-and-mortar stores and burgeoning e-commerce platforms, the region serves as a focal point for sourcing and procurement activities. Furthermore, the North American market is characterized by a competitive environment, with retailers constantly seeking to enhance their sourcing and procurement strategies to gain a competitive edge in the marketplace. This has led to increased investments in digital transformation initiatives and strategic partnerships between retailers and suppliers.
Asia Pacific is expected to witness profitable growth over the projection period. With a vast network of suppliers and manufacturers, the region is known for its cost-effective production capabilities, making it a preferred destination for global retailers seeking to optimize their supply chains. Moreover, the Asia Pacific region is witnessing a rapid digital transformation in retail, with the proliferation of e-commerce platforms, mobile payments, and innovative retail technologies reshaping consumer behavior and supply chain dynamics.
Key players in the market
Some of the key players in the Retail Sourcing & Procurement Market include Proactis Holdings Plc., Basware Corporation, HighJump Software, Kinaxis, Coupa Software, Oracle Corporation, Epicor Software Corporation, SAP SE, IBM Corporation, Jaggaer , Inc., JDA Software Group, Inc., Infor Nexus and Zycus Inc.
In January 2023, Oracle Corp and Microsoft Corp announced Oracle Database@Azure, which gives customers direct access to Oracle database services running on Oracle Cloud Infrastructure (OCI) and deployed in Microsoft Azure datacenters.
In January 2023, Oracle and Red Hat have expanded operating system collaboration. The strategic collaboration starts with Red Hat Enterprise Linux running on OCI as a supported operating system. This is a global partnership which will also be available to customers in India.
In February 2022, Zycus, the pioneer in Cognitive Procurement, announced the launch of Merlin for eProcurement with two AI-enabled products, Buyer Smart Desk and Autonomous Quick Source that focuses on what matters the most to your business.
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