Procurement’s Rising Importance Lifts Demand for Software
Enterprises seek holistic platforms that offer agility, analytics and AI for strategic procurement decision-making and operations, ISG Provider Lens™ report says
The 2024 ISG Provider Lens™ global Procurement Software Platforms report finds that, as procurement evolves into a strategic capability, enterprises are setting new priorities when choosing software. They are now seeking platforms that enhance procurement efficiency, adaptability and data-driven insights.
“Supply chain disruptions have made the business landscape far more complex and risky in the last few years,” said
Amid ongoing economic uncertainty, enterprises are looking for ways to reduce costs in every area, including procurement, ISG says. When evaluating procurement software platforms, they seek features including spend consolidation, automated negotiation tools and the ability to optimize supplier performance. Companies also prioritize streamlined workflows, reduced administrative overhead and a demonstrably quick return on investment.
The increasing complexity of procurement processes, plus growing volumes of procurement data that need to be analyzed, are creating more demand for software that automates repetitive tasks, the report says. Automation can both reduce the chance of human error and give procurement experts more time to focus on strategic initiatives.
To make more informed decisions on sourcing, negotiation and risk management, organizations require real-time insights into trends in spending, supplier performance and market fluctuations, ISG says. Advanced, AI-powered analytics, including generative AI (GenAI), are now essential to procurement software platforms.
“The next logical step is autonomic decision-making by procurement software itself, especially given the shortage of skilled labor in this field,” said
The report also explores other procurement platform trends, including the increasing demand for easy-to-use software and the rising importance of trust between vendors and clients.
For more insights into enterprise challenges related to procurement platforms, including continued reliance on inefficient, manual processes and the need for more transparency between internal functional divisions, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ global Procurement Software Platforms report evaluates the capabilities of 24 providers in one quadrant: Procurement Software Platforms.
The report names Basware, Coupa, GEP,
In addition, Corcentric is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in the quadrant.
A customized version of the report is available from GEP.
The 2024 ISG Provider Lens™ global Procurement Software Platforms report is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across
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