The global supplier relationship management (SRM) software market is anticipated to expand at a robust CAGR during the forecast period, 2021-2028. The growth of the market is attributed to increasing demand for solutions that can assist in real-time communication with suppliers. Moreover, rising focus toward strategic sourcing and efficient management of the supplies from procurement service providers is propelling the market growth.
SRM is the process of evaluating the vendors that supply the required goods or services to the organizations. In this process, the organization can determine the importance of supplier in its success and develop strategies to improve their relationship with them. Thus, to manage the supply chain, SRM software is deployed by supply chain professionals or vendors who deal with procumbent service providers.
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The primary purpose of the SRM software is to optimize the workflow and improve the relationship with an organization and its suppliers. It aids in reducing the organization’s risk and increase its penetration in the market, which helps to improve the delivery process with the supplier. Companies that deployed SRM software are seen improvement in their service quality, cost efficiency of the services, and innovation. This software offers real-time data about the contracts signed to the particular vendor, list of approved or potential vendors, and requests of quote processing from vendors.
Market Trends, Drivers, Restraints, and Opportunities
- Growing awareness about benefits of SRM software such as high return on procurement investment, easy access to the market, and improved supply chain efficiency is anticipated to propel the market growth.
- Rising demand for real-time communication between organization and supplier is propelling the deployment of SRM software across the globe.
- Lack of ERP capability solutions, rising number of open-source vendors, and absence of cross-functional collaboration are key challenges that can hinder the growth of the market.
- The COVID-19 pandemic had disrupted the supply-chain activities owing to the imposition of lockdown on the manufacturing facilities. This, in turn, has negatively impacted the growth of the market. However, the market is quickly recovering, which is expected to help the market to return pre-COVID level growth.
- Increasing focus of organization to reduce the supply-chain vulnerabilities is anticipated to create remunerative opportunities for the market during the forecast period.
Supplier Relationship Management (SRM) Software Market Segment Insights
Retail segment to account for a large market share
Based on applications, the market is segmented into manufacturing, retail, telecom services, wholesale/distribution, transportation & logistics, government, and financial. The retail segment is anticipated to account for a large market share owing to the increasing number of wholesalers and distributors in the emerging economies such as India and China. This, in turn, has encouraged retailers to deploy SRM software to manage their vendors. Moreover, the growing awareness about SRM software benefits such as easy access to the vendors pricing history and product quality details is spurring the growth of the market segment.
The market in Asia Pacific to exhibit a high CAGR
On the basis of regions, the global supplier relationship management market is segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America accounted for a significant market share owing to early adoption of cloud technology, which in turn, has allowed the employees to access the software remotely. Moreover, the presence of major vendors is driving the regional market growth. On the other hand, the market in Asia Pacific is anticipated to exhibit a high CAGR owing to growing awareness about SRM software in countries such as India, Japan, China, and Singapore.
Compititive Landscape
The major players of the market are SAP AG, JDA Software Group Inc., Neocase Software, Intelex Technologies, Iasta Inc., Oracle Corp., Epicor Software Corp., Whiztec Software, Zycus Inc., Ariba Inc., Computer Sciences Corp. (CSC), and Biznet Solutions Ltd.
Companies are focusing on integrating additional features that can benefit the organization and their relationship with suppliers. Moreover, they are engaging in strategies such as partnerships, collaborations, and agreements to expand their market share.
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