NEW YORK, May 15, 2024 /PRNewswire/ -- The
global vendor management software market size is
estimated to grow by USD 5344.31 mn
from 2024-2028, according to Technavio. The market is estimated to
grow at a CAGR of over 12.83% during the forecast
period.
For more insights on the forecast market size and
historic data (2018 - 2022) - Download
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Type (Retail, BFSI,
Manufacturing, and
Healthcare and others), Deployment (On-
premises and Cloud-based), and Geography
(North America, APAC, Europe, South America,
and Middle East and Africa)
|
Region
Covered
|
North America, APAC,
Europe, South America,
and Middle East and Africa
|
Key companies
profiled
|
360factors Inc.,
Corcentric Inc., Coupa Software
Inc., Deskera USA Inc., eSellerHub, Gatekeeper,
HICX Solutions Ltd., Intelex Technologies ULC,
International Business Machines Corp., Ivalua
Inc., LogicGate Inc., LogicManager Inc.,
MasterControl Solutions Inc., MetricStream Inc.,
Proactis Holdings plc, Quantivate LLC,
SalesWarp, SAP SE, Zoho Corp. Pvt. Ltd., and
Zycus Inc.
|
Key Market Trends Fueling Growth
Vendor Management Software (VMS) market growth is driven by
demand for integrated solutions. VMS offers features like
accounting, ERP, CRM, procurement, and contract management.
Effective integration with other software, such as CRM, ERP, and
contract life cycle management, is crucial for buying, selling, and
contract processes. Key benefits include cost efficiency,
performance management, risk management, regulatory compliance, and
supply chain resilience. Industries like healthcare, IT, retail,
and banking services adopt VMS for vendor selection, relationship
management, and performance monitoring.
* Cloud computing's pay-per-use model makes IT solutions more
cost-effective for enterprises.
* Factors driving the adoption of cloud-based vendor management
software include: easier implementation, less IT dependency,
minimal hardware requirements, low maintenance costs, and no
licensing fees.
* Cloud-based solutions enable businesses to focus on core
competencies and offer advantages such as: minimal operational
expenses, pay-as-you-go model, easy accessibility, reduced upfront
costs, short processing time, complete scalability, and a low-risk
business model.
* The growing acceptance of cloud-based vendor management software
is due to its low upfront costs, flexibility to scale, and high
speed of deployment.
* Some vendors providing cloud-based vendor management software are
LogicManager.
* Cloud-based software can be accessed remotely through a web
browser, reducing implementation time and improving ROI.
* Advantages of cloud-based vendor management software over
traditional on-premises software include: lower costs, faster
deployment, and increased flexibility.
* The increasing deployment of cloud-based vendor management
software is expected to boost the global vendor management software
market during the forecast period.
* Keywords: cloud computing, pay-per-use, vendor management
software, implementation, IT solutions, in-house IT personnel,
hardware infrastructure, maintenance costs, licensing costs,
LogicManager, operational expenses, pay-as-you-go model,
accessibility, upfront cost, processing time, scalability, low-risk
business model, global vendor management software market.
Market Challenges
- The vendor management software market presents challenges for
SMEs due to high implementation costs, which include design,
customization, training, and maintenance. IT expertise is required
for installation, and planning, funding, and managerial cooperation
are essential. Post-implementation, software upgrades are necessary
to address market trends and regulatory compliance. Key features
include risk management, automation, contract management,
performance metrics, and data security. Industries such as
healthcare, IT, retail, and banking utilize this software for
procurement, vendor information, and compliance management.
- On-premises vendor management software poses significant cost
challenges for SMEs.
- Cost components include system design and customization,
implementation, training, and maintenance.
- IT staff with relevant skillsets are required for
implementation.
- Planning, funding, self-assessment, cooperation, and clear
vision are essential for successful implementation.
- Employee training is necessary for efficient software
usage.
- Regular upgrades are required to keep up with market trends,
increasing overall cost.
- High implementation costs hinder vendor management software
adoption among end-users.
- Impeded adoption negatively impacts the growth of the global
vendor management software market during the forecast period.
Research report provides comprehensive data on
impact of trend, driver and challenges - Buy
Report
Segment Overview
This vendor management software market report extensively covers
market segmentation by
- Type
- 1.1 Retail
- 1.2 BFSI
- 1.3 Manufacturing
- 1.4 Healthcare and others
- Deployment
- 2.1 On-premises
- 2.2 Cloud-based
- Geography
- 3.1 North America
- 3.2 APAC
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Retail- Vendor Management Software (VMS) is a
crucial tool in the retail sector, enabling compliance with
regulations, performance management, and cost efficiency. Economic
and non-economic factors drive the market's growth, including
business expansions, acquisitions, and consumption. VMS offers
features like product benchmarking, vendor tracking, compliance
management, and supplier relationship management. Performance
monitoring, risk management, and regulatory compliance are
essential aspects. SMEs and large enterprises alike benefit from
VMS, addressing vendor selection, relationships, and contract
management. Economic factors include economic instability and
increasing competition, while non-economic factors include the need
for supply chain resilience and automation processes.
Implementation costs, legacy systems, data security, and privacy
issues are challenges. Industries like healthcare, medical
equipment, pharmaceuticals, IT and telecom, and technology products
heavily utilize VMS, Vendor Procurement Software, Supplier
Management Software, and Vendor Compliance Software.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
The Vendor Management Software (VMS) market encompasses
solutions designed to streamline and optimize the relationship
between businesses and their vendors. These systems offer features
such as Supplier Management, Vendor Tracking, Vendor Compliance,
Vendor Procurement, and Vendor Risk Management. SMEs benefit from
cost efficiency and performance management through automated
processes, reducing human error and enhancing supply chain
resilience. VMS implementation can incur significant costs, but the
return on investment includes effective Vendor selection,
performance monitoring, and regulatory compliance. Challenges
include data security and privacy issues, especially in industries
like Healthcare, dealing with sensitive medical equipment and
pharmaceutical data. Legacy systems integration and automation
processes are also crucial considerations.
Market Research Overview
Vendor Management Software (VMS) is a crucial solution for
procurement and supply chain teams in managing and optimizing
relationships with suppliers. The VMS market is expanding, with
features such as contract management, tracking, and analytics
becoming increasingly important. Supplier relationship management
is a key function, with risk management and performance metrics
essential for effective vendor management. The software enables
companies to streamline processes, reduce costs, and improve
efficiency. Additionally, real-time visibility and communication
facilitate better collaboration and issue resolution. The VMS
market caters to various industries, including manufacturing,
healthcare, and education, among others. Companies seek
cost-effective and comprehensive solutions to manage their vendor
relationships effectively. The market is competitive, with major
players offering advanced features and integrations to attract
customers.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Type
-
- Retail
- BFSI
- Manufacturing
- Healthcare And Others
- Deployment
-
- Geography
-
- North America
- APAC
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio