Procure-to-Pay solutions require presenting suppliers’ products to users and then digitizing, automating, and magnifying procurement and financial processes. It helps to incorporate control, verification, validation, and document management activities, thereby permitting companies to apply significant control over their purchases and enhance their efficiency.
The global procure to pay solutions market expected to increase market value by USD 11.56 billion, with spurring CAGR in the forecast period from 2020-2027. The main growth driver that drives the size of the procure to pay solutions market is emerging need to reduce costs in the procurement process, modernizing complicated procurement processes, managing risk, and automation are fueling market demand.
The procurement to payment function covers strategic purchase, contract management, and order placement (including supplier-managed web content, contactless e-commerce payment and settlement, reconciliation, reporting, control, and audit, as well as the entire procurement to the payment process analysis. Besides, built-in authorization control ensures proper payment amount and usage.
These features analyze the spending details, help evaluate purchase order compliance, and value price differences for the same product against volume discounts and global price benchmarks.
The rise in domestic labor costs has continued to impact the traditional procurement organization and procurement business, continually subverting the traditional procurement business model.
The procurement solutions can help companies purchase goods and services promptly at an appropriate cost. It has the following features, which provide easy-to-use features that save valuable time for employees, direct procurement to approved suppliers, and use pre-agreed contracts to reduce costs. It presents real-time information about company expenditures and supplier performance information to improve visibility.
The technology adoption among millennials and middle-age populations drives the market share for procure to pay market. The prevalence of internet access and smartphones are providing accessibility to the user towards digitization. Moreover, with easy access, less risk, and eliminating error in the procurement process is changing the payment scenario in many developed countries. Therefore, the procure to pay solutions are bits of help in streamlining the finance function in companies and increasing profitability.
With the emerging technology, the paper-based documentation is getting decreased, which reduces the confusion, chaos, and error chances during the time of extraction of financial indexing. Also, the bolstering BPO sectors are the primary reason for bolstering the market of procuring to pay outsourcing technology around the world. Besides, almost every organization invests a significant amount of capital in the procurement of procure-to-pay outsourcing to increase productivity by optimizing the procurement process.
Based on the solutions, the global procures to pay solutions market segmented into Strategic Sourcing, Spend Management, Category Management, Process Management, Contract Management, Transactions Management. The strategic sourcing segment is dominating with maximum share in the global procure to pay the solutions market in the forecast period. The need for strategic sourcing is increasingly essential for procurement professionals to leverage technology and tools that can intensify production, competence, and profitability in the most cost-effective method. Moreover, the increasing use of procurement to pay solutions were adopted by companies to reduce the deficiency and provide flexibility. This strong collaborative toolset helps in managing the entire procurement function.
Based on the end-user, the global procurement to pay solutions market classified into Banking, Telecommunication, Healthcare, Retail & eCommerce, Manufacturing, and Others. The manufacturing companies segment dominates the market share for the global procure to pay solutions market. It is mainly due to the increase in the adoption of technology-driven approaches that helps the companies in streamlining the production procedure and enhance cost-effectiveness. Also, the procure to pay solutions to keep the process transparent and reduces error and fraud risk. Also, it manages the inventory by optimizing the functions effectively and streamlined contract management. Thus, the manufacturing companies getting benefited with the use of procurement solutions.
Based on the organization size, the global procure to pay solutions market is bifurcated into Large Enterprises, Small, and Medium-sized Enterprises (SMEs). The large enterprises’ segment helps fuel the market share for the global procure to pay solutions market. The large enterprises’ needs procure to pay process to connect the procurement and finance functions. Its primary responsibilities are to find an ideal service provider, negotiate contracts, minimize spending, and identify scopes to automate the purchasing cycle. It mainly owes to reduce operational costs and increase efficiency and focus on automation. The large enterprises are working to provide easy access to the clients to provide mobility and flexibility.
Based on geography, the global procures to pay solutions market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America is the world’s fastest-growing global procure to pay solutions market, accounting for the largest share. It is mainly due to the increasing adoption of 5G technology, and the growing use of digital payment platforms is fueling the market share of the North American market.
Companies such as SAP SE, Zycus Inc., Infosys Limited, Bertelsmann SE & Co., Comarch SA, Ariba Inc., ProActis, GEP and others are key players for global procure to pay solutions market.
By Organization Size