USD 7.6 billion
Procurement Software Market Size, Share, and Growth Analysis
Procurement Software Market By Deployment (On-cloud, On-premise), By Software Type (Supplier Management, Contract Management), By Organization Size (Small and medium size Enterprises (SME), Large Enterprises), By Vertical, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45E2328 |
Region:
Global |
Published Date: May, 2025
Pages:
199
|Tables:
94
|Figures:
71
Format -
Procurement Software Market Insights
Global Procurement Software Market size was valued at USD 7.6 billion in 2023 and is poised to grow from USD 8.42 billion in 2024 to USD 19.13 billion by 2032, growing at a CAGR of 10.8% during the forecast period (2025-2032).
The surging wave of digitalization in industries is one of the biggest drivers in fueling growth in the global procurement software market. Organizations are migrating away from manual, paper-based procurement practices to electronic systems that automate workflows, facilitate real-time tracking of data, and improve overall procurement visibility. This transformation is driven by the need to improve operational efficiency, reduce costs, and minimize human errors. Procurement software allows organizations to centralize sourcing, supplier management, and contract handling, resulting in better compliance and strategic decision-making. As digital maturity becomes a competitive advantage, the need for smart procurement solutions continues to grow, boosting market demand.
Cloud-based deployment has become a key trend driving the global procurement software sector. Cloud integration permits procurement systems to be accessed anywhere, enables teams to collaborate real-time, and eliminates the demand for large-scale on-premises infrastructure. Such flexibility becomes particularly important in global companies managing complex supply networks across various geographies. Cloud platforms also provide automated updates, robust security features, and scalable resources, which enable companies to respond quickly to fluctuating market dynamics. With organizations focusing on agility, cost-effectiveness, and digital access, the convergence between procurement software and cloud-based architecture is a critical factor in expanding the footprint of the market.
How does AI help in Forecasting Demand and Identifying Cost-Saving Opportunities?
Artificial Intelligence (AI) is revolutionizing procurement software with the ability to make better, data-based decisions. With AI-enabled tools, organizations are able to analyze large amounts of procurement data to make demand forecasts, find cost-saving opportunities, and determine supplier risk. This results in more strategic sourcing and better contract management. Moreover, AI-powered chatbots and automation simplify mundane tasks like invoice matching and approval processes, enhancing operational efficiency. Consequently, organizations minimize costs and risk mitigation. SAP's inclusion of AI in its procurement platform allowing predictive analytics and smart supplier suggestions is a prominent example of how AI is revolutionizing the global procurement software industry trends.
SAP's AI copilot Joule has tremendously enhanced procurement activities in 2025 by adopting generative AI within its system. Joule allows for natural language interfaces, and through these, procurement professionals can receive insights and conduct activities in a more efficient manner. For example, users can ask about requisitions or purchase orders in regular language, and Joule will instantly offer contextually rich responses, enhancing decision-making processes.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
E-Procurement
Fastest Growth
Spend Analysis
Growth Rate
10.8% CAGR
Global Procurement Software Market ($ Bn)
Country Share by North America (%)
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Procurement Software Market Segments Analysis
Global Procurement Software Market is segmented by Deployment, Software Type, Organization Size, Vertical and region. Based on Deployment, the market is segmented into On-cloud and On-premise. Based on Software Type, the market is segmented into Supplier Management, Contract Management, E-procurement, E-sourcing and Spend Analysis. Based on Organization Size, the market is segmented into Small and medium size Enterprises (SME) and Large Enterprises. Based on Vertical, the market is segmented into Travel & Logistics, IT & Telecommunications, Electronics, Automotive, Retail, Mining and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
How does E-Procurement Software Contribute to Transparency and Cost-Efficiency in Procurement?
E-Procurement software is dominating in the global procurement software market through the integration of AI, cloud computing, and real-time analytics. These solutions facilitate automated buying, efficient approvals, and improved supplier integration. Its dominance is due to the increasing demand for transparency, cost savings, and quicker procurement cycles. The software's capacity to centralize and standardize procurement processes makes it particularly appealing to enterprises seeking agility and scalability in supply chain management.
Spend Analysis software is expected to be the fastest-growing segment in the global procurement software market as demand for data-driven procurement strategies increases. Organizations want more insights into spending behavior to realize cost-saving opportunities, ensure compliance, and maximize supplier performance. With more businesses focusing on strategic sourcing, the demand for real-time intelligent spend visibility continues to gain speed.
How does Cloud-Based Deployment Facilitate Remote Collaboration and Real-Time Data Access?
Cloud-based deployment is dominating the global procurement software market by offering scalable, cost-effective, and easily accessible solutions. This model allows organizations to quickly deploy procurement systems without massive hardware investments, enabling remote work and real-time access to data. Its reign is due to the adaptability it offers, enabling companies to respond to changing needs and embed new technologies such as AI and machine learning in a seamless manner. With firms focusing on agility and digitalization, cloud-based procurement solutions are emerging as the go-to solution for increasing operational efficiency and competitiveness.
On-premises deployment in the global procurement software market is experiencing rapid growth, driven by organizations seeking enhanced control over data security, compliance, and customization. This deployment approach enables companies to customize solutions to their unique requirements and exercise tight control over sensitive procurement processes. With regulatory needs and data privacy issues escalating, on-premises solutions are gaining traction.
Global Procurement Software Market By Software Type (%)
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Procurement Software Market Regional Insights
What role does Automation Play in North America's Procurement Software Market Expansion?
According to the global procurement software market analysis, North America is a dominant region in the sector, led by strong adoption levels of cutting-edge technologies such as AI, cloud computing, and analytics. Strong demand from sectors including retail, manufacturing, and government, coupled with the presence of leading software vendors, drives growth. Secondly, North America has seen companies in the region placing greater emphasis on automation, cost reduction, and supply chain optimization, and thereby becoming a hotspot for market growth and innovation.
US Procurement Software Market
United States is dominating North America’s procurement software market is experiencing significant growth, driven by the adoption of advanced technologies like artificial intelligence, cloud computing, and automation. Large businesses across sectors are now widely adopting procurement software to optimize operations, reduce inefficiencies, and access real-time intelligence regarding their supply chain. The development indicates a more pervasive push for digitalization and data-based decision-making in America.
Canada Procurement Software Market
Canada is fastest growing North America’s procurement software market is expanding as organizations seek to modernize their procurement processes. The focus is on enhancing operational efficiency, compliance, and transparency in procurement processes. Canadian companies are increasingly embracing cloud-based procurement platforms to enable remote collaboration and access to real-time data, conforming to worldwide trends towards digital procurement transformation.
Why is the Focus on Supply Chain Efficiency Important for Europe’s Procurement Software Market?
Europe's procurement software market is witnessing strong growth, driven by digitalization and supply chain effectiveness. Germany, France, and the Netherlands are at the forefront of implementing cloud-based procurement systems, improving transparency and compliance across various sectors. The focus in the region on sustainability and regulation drives further growth in the procurement technology space, making Europe an important participant in the international market for procurement software.
Germany Procurement Software Market
Germany is a leading contributor to Europe's procurement software market owing to its strong industrial and manufacturing sectors. The nation's drive for supply chain optimization, digitalization, and adherence to strict regulations fuels the demand for procurement solutions. Germany's innovation agenda as well as sustainability drive further fuels the adoption of high-end procurement technologies, making it a critical contributor in Europe's procurement software market.
France Procurement Software Market
France is one of the fastest-growing country in Europe’s procurement software market, driven by increasing adoption of digital procurement solutions across industries. The nation's focus on transparency, cost savings, and enhancing procurement efficiency compels organizations to implement cloud-based platforms. France's robust business presence in international markets is responsible for the swift growth of procurement technologies, making it a crucial player in Europe.
UK Procurement Software Market
The United Kingdom's market for procurement software is growing consistently with the government's initiative for public sector procurement's digital transformation. The rising adoption of automated cloud-based procurement software in retail, manufacturing, and other sectors is propelling market growth. With companies emphasizing efficiency and compliance, the UK's emphasis on technological innovation positions it as a leading contributor to the procurement software market in Europe.
Why is Cloud-Based Procurement Adoption Increasing in Asia Pacific?
The Asia Pacific region is witnessing significant growth in the global procurement software market, driven by rapid digital transformation and increased demand for supply chain efficiency. China, India, and Japan are at the forefront of implementing cloud-based procurement technologies, automation, and insights driven by data. As companies focus on reducing costs, compliance, and operating efficiencies, Asia Pacific is emerging as a force to be reckoned with in terms of the procurement technology future.
Japan Procurement Software Market
Japan is a major contributor to the Asia Pacific procurement software market, with technological innovation and a high level of automation focus. The nation's use of AI and machine learning in procurement software enables companies to enhance decision-making, efficiency, and supply chain management. Japan's high level of focus on digital transformation, coupled with a competitive manufacturing industry, increases the demand for sophisticated procurement technologies, making it a leading country in Asia.
South Korea Procurement Software Market
South Korea’s contribution to the Asia Pacific’s procurement software market is marked by rapid adoption of cloud-based solutions and automation. The nation's emphasis on technology-enabled efficiency and supply chain management is fueling the need for procurement software. South Korea's booming IT industry, coupled with the increasing number of SMEs adopting procurement solutions, makes it one of the top markets for procurement software in the Asia Pacific region.
Global Procurement Software Market By Geography
- Largest
- Fastest
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Procurement Software Market Dynamics
Procurement Software Market Drivers
Digital Transformation
- Digital transformation is one of the major drivers of the global procurement software market growth. Firms are more and more implementing automated procurement systems to increase efficiency, minimize manual operations, and enhance decision-making. It allows them to manage data in a better manner, enhance transparency, and maximize supply chain management, which accelerates the market growth.
Cost Optimization
- Cost optimization is another key driver in the procurement software market. Companies are constantly challenged to cut costs of operations and optimize value. Procurement software offers solutions for more intelligent sourcing, inventory control, and negotiations with suppliers, resulting in huge cost savings. As companies look to be more efficient, demand for procurement software increases.
Procurement Software Market Restraints
High Implementation Costs
- One of the key inhibiting factors for the global procurement software market is high initial implementation fees. Small and medium-sized enterprises (SMEs) struggle to implement these sophisticated solutions owing to the initial financial outlay involved, rendering it challenging for them to adopt these systems.
Integration Challenges
- Implementation of procurement software over legacy systems may be cumbersome and time-consuming. Organizations can encounter technical challenges and need heavy customization to integrate new software with their processes. It presents obstacles, particularly for those with aging infrastructure, hindering the adoption of procurement software by different industries.
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Procurement Software Market Competitive Landscape
The global procurement software market competitive environment is dominated by a few major international firms, such as SAP, Oracle, IBM, Coupa Software, and Jaggaer. These firms compete on the basis of developing better products through innovation, strategic collaborations, and mergers and acquisitions. For instance, SAP pursues expanding cloud-based solutions, whereas Coupa Software concentrates on AI-based procurement solutions to optimize operational efficiency and decision-making across supply chains.
The startup landscape in the global procurement software market is flourishing as companies push the boundaries of automation, AI, and cloud-based technologies. Startups are launching affordable, agile solutions that are aimed at streamlining procurement processes for small, medium, and large businesses. With a focus on innovation, such companies are transforming the conventional procurement process with intelligent analytics, machine learning, and AI-based tools that provide real-time insights, enabling businesses to optimize their procurement processes and minimize operational expenses.
- Established in 2015, Zylo is a SaaS procurement software company that focuses on SaaS spend management. It allows companies to monitor and optimize their software subscriptions. Zylo provides a platform that aggregates all SaaS subscriptions with comprehensive analytics and cost-saving information.
- Founded in 2016, BuyersEdge Platform is a B2B procurement software company that enables organizations to enhance procurement activities through more intelligent sourcing and vendor management. BuyersEdge Platform: Their solution includes sourcing tools, supplier collaboration tools, and contract management tools that are centered around improving supplier relations while achieving cost savings.
Top Player’s Company Profiles
- Basware Corp.
- BirchStreet Systems Inc.
- Enaviya Information Technology Pvt. Ltd.
- Ginni Systems Ltd.
- International Business Machines Corp.
- Ivalua Inc.
- Microsoft Corp.
- NB Ventures Inc.
- Oracle Corp.
- ORO Labs Inc.
- SAP SE
- ScienceSoft USA Corp.
- SunSmart Technologies Pvt. Ltd.
- SutiSoft Inc.
- Tata Consultancy Services Ltd.
- Tropic Technologies Inc.
- Workday Inc.
- Zycus Inc.
Recent Developments in Procurement Software Market
- In April 2024, SAP launched SAP Ariba Intake Management, a solution aimed at automating procurement request creation, routing, and support through coordinating processes between several systems. The innovation increases the user experience through offering a central platform for procurement inquiries and status tracking, optimizing workflows and increasing efficiency.
- In May 2024, Coupa Software announced significant advancements to its Supply Chain Collaboration suite, empowering customers to enhance resilience amid market disruptions. These features allow supply chain, procurement, and finance professionals to simplify communication, enhancing visibility and responsiveness to supply chain problems, thus bolstering operational responsiveness.
- In December 2024, JAGGAER released JAGGAER One 24.3, integrating AI-driven features and hyper-automation to boost cost savings and decision-making across procurement, finance, and supply chain functions. This release further reinforces collaboration and speeds up digital innovation, making JAGGAER a market leader in smart procurement solutions.
Procurement Software Key Market Trends
- Rise of AI-Driven Procurement Solutions: Integration of AI into procurement software is becoming a major trend, allowing for automation, predictive analytics, and better decision-making. This technology assists companies in optimizing sourcing, automating supplier management, and lowering procurement costs, promoting efficiency and accuracy in procurement processes.
- Cloud Adoption Transforming Procurement Practices: Cloud-based procurement solutions are becoming popular because of their flexibility, scalability, and affordability. Companies increasingly prefer cloud deployment to minimize IT overheads, improve data security, and enhance accessibility, facilitating real-time collaboration and data-driven insights for improved procurement decisions.
Procurement Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global procurement software industry is undergoing rapid transformation, driven by the adoption of digital technologies, cloud integration, and AI. These innovations automate workflows, increase operational efficiency, and lower costs, making procurement software an essential tool for companies seeking a competitive edge.
The transition to cloud-based solutions supports remote collaboration, immediate access to data, and scalable resources, while AI supports better decision-making through predictive analysis and automation. With industries focusing on supply chain optimization, cost savings, and regulatory compliance, the market continues to expand. With unprecedented advancements from established players and the rise of new entrants, the procurement software market is ready to see persistent growth, defining the future of procurement practices globally.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 7.6 billion |
| Market size value in 2032 | USD 19.13 billion |
| Growth Rate | 10.8% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Procurement Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Procurement Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Procurement Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Procurement Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Procurement Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Procurement Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Procurement Software Market Report Snapshots
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