Digital Procurement Systems Procurement Intelligence
In this digital procurement systems procurement intelligence report, we have estimated the pricing of the key cost components. License, support, implementation, and maintenance form the largest cost component of digital procurement systems businesses. Together, they account for about 75% of the total cost. The cost also depends on the type of software being deployed, the number of users accessing the software, the mode of deployment whether it is on-site or on the cloud, and the type of pricing.
For example, cloud-based software costs start at 15.9% of on-premise software. Costs for an e-procurement software varies from as little as USD 300 per month all the up to more than USD 50,000 for a one-time license. Firms can add user licenses to on-demand software as they need them and remove them when they don't, ensuring that firms only pay for what they really use. This is essential in light of the fact that most businesses software programs have licenses for 20% to 50% more users than are ever actually logged in to the system.
Order your copy of the Digital Procurement Systems category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Operational Capabilities - Digital Procurement Systems
- Years in Service - 25%
- Industries Served - 20%
- Geographic Service Presence - 15%
- Revenue Generated - 15%
- Employee Strength - 15%
- Key Clients - 10%
Functional Capabilities - Digital Procurement Systems
- Procure-to-Pay - 19%
- Sourcing - 19%
- Contract Management - 19%
- Risk Management - 19%
- Analytics - 19%
- Others - 5%
Rate Benchmarking
The cost of developing digital procurement systems is significantly lower in India than in other developed countries like the US, due to the country's large and skilled workforce and low cost of living.The average salary for a software engineer in India is about USD 20,000 per year, while the average salary for a software engineer in the United States is about USD 100,000 per year which is five times higher. It has been discovered that implementing an offshore strategy can assist a corporation in reducing employment costs by more than 50 - 60%. Further, the rate at which these systems are provided to firms also depend on the mode of deployment of the softwares and the pricing models implemented. For example, no matter the length of the term, SaaS providers typically provide yearly contracts with the same monthly rate. Additionally, for a set incremental charge, they let consumers start with a small number of seats and add more later. On the other hand, hosted ASP model providers of perpetual licenses demand contracts with a minimum duration of three years and may grant discounts for longer terms. Additionally, they strive to offer consumers more seats than they will use over the course of the contract, not simply the ones they require right then.
Supplier Newsletter
In October 2022, Airtel integrated Oracle's SCM cloud and Fusion ERP solutions to address issues including existing integration, automation, and agility for the 5G era. Airtel benefitted from Oracle's cloud fusion solution by streamlining its financial data, supply chain management, and manual tasks.
In October 2022, to enable their customers to pay for their software expenditures, Tropic, a SaaS procurement software platform firm, teamed up with Tranch, a B2B Buy Now Pay Later (BNPL) supplier. Customers of Tropic could send in their bills through Tranch and repay them back via adjustable EMIs for a maximum of one year as a result of this collaboration. Customers of Tropic had to immediately connect their bank accounts through Plaid in order to start and be approved.
In September 2022, with the opening of a new office in Abu Dhabi, GEP, a provider of procurement and supply chain services, increased its market reach. The company since then worked with several middle eastern clients to provide procurement software services in the fields of aviation, packaged goods for consumers, energy, banking and finance, and petroleum.
In December 2021, as part of its plan to grow its business, Zycus has built a branch in Japan. The rising demand for the growth of Software as a Service (SaaS) in the nation were the main factors driving the company's expansion.
In September 2021, McCarthy Holdings, a construction corporation based in the United States, collaborated with GEP to deploy its smart procurement software. The company intends to use GEP procurement systems to transform their source-to-pay process.
List of Key Suppliers
- SAP SE
- Proactis Holdings PLC
- Coupa Software Inc.
- Microsoft Corporation
- Oracle Corporation
- Epicor Software Corporation
- Ginesys
- Zycus, Inc.
- Ivalua Inc.
- Infor Inc.
Browse through Grand View Research’s collection of procurement intelligence studies:
- Disposable Medical Gloves Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Loyalty Programs Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Helium Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
Digital Procurement Systems Procurement Intelligence Report Scope
- Digital Procurement Systems Category Growth Rate : CAGR of 10% from 2023 to 2030
- Pricing Growth Outlook : 10% - 12% (annual)
- Pricing Models : Subscription-based pricing model, cost-plus pricing model
- Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
- Supplier Selection Criteria : Procure-to-pay, sourcing, contract management, risk management, analytics, experience, solution type, scalability, support, technical expertise, security measures, cost and value, support and maintenance, regulatory compliance, and others
- Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
