Inclusion of Spend Monitoring Likely to Transform the Spend Analytics Market
Traditionally, companies have been relying on spend analytics to identify spend leakage cases and non-compliance scenarios in their procurement processes. However, contract value leakage has resulted in them losing a significant percentage of the annual revenue. Moreover, traditional spend analytics process being massively an offline exercise, various aspects such as price variations, process delays, discount opportunities and non-compliant transactions are not being considered which can lead to further increase in revenue loss. However, companies are now focusing on adopting spend monitoring, an extension to traditional spend analytics to address challenges. With advancements in technology, it has become possible to monitor live spending on a daily basis. In addition, amidst the COVID-19 pandemic, a rapid transition towards digital platforms has increased the complexity of the existing challenges, especially for supply chain stakeholders, which has resulted in increased fluctuations in price and higher volatility in market. This has created obstacles for businesses and procurement teams. Against this backdrop, in a bid to stay abreast of the current upsets in the supply chain and gain high value from procurement spending, organizations are leveraging spend monitoring in spend analytics to gain competitive edge in the coming years. This is expected to influence the spend analytics market as vendor focus on innovative monitoring tools remains evident.
Predictive Analytics to Bolster Spend Analytics Market Growth
Rising demand for predictive analytics across various industries is expected to drive growth of spend analytics market. Adoption of predictive analytics in several processes of a business facilitates companies to identify loop holes in the current workflows and take strategic decisions that can translate to new opportunities and competitive benefits. Moreover, with predictive analytics, resolution of various complex business problems is possible that contributed to the overall performance of the business units. Additionally, with integration of AI in the predictive analytics, it has become possible for companies to glean actionable insights, making it more cognitive in turn fuelling the organization’s growth. Proliferation of predictive analytics in the spend analytics space has resulted in a transition towards high precision data analysis, which is expected to influence growth of the spend analytics market.
Spend Analytics Market Likely to Witness High Growth Potential in Asia Pacific
Emerging economies in the Asia Pacific region are expected to showcase high lucrativeness for spend analytics market in the coming years. This is mainly attributed towards growing businesses in the region on the back of favourable environment, cheap labour and land. Countries in the Asia Pacific region, such as China and India are being eyed upon by several big players across various industries, and the region being a manufacturing hub, it has attracted various companies that are involved in providing support to manufacturing functions. This is likely to pave potential growth pathways for adoption of spend analytics across industries including but not limited to manufacturing, pharmaceuticals, logistics and food and beverages in the region. Moreover, with moderate growth in the BFSI sector in the region, use of analytical tools such as spend analytics is expected to further witness an upswing. These factors are expected to give higher visibility in terms of growth making Asia Pacific a lucrative region for spend analytics market.
Spend Analytics Market: Competitive Landscape
Key players and service providers in the spend analytics market are aiming to gain competitive edge using various strategies such as acquisitions and innovations in the existing range of spend analytics products. In July 2021, Microsoft announced acquisition of spend analytics provider – Suplari – in a bid to bolster Dynamics 365 service offering. With this acquisition, a comprehensive data and spend insights would be accessible to the entire supply chain, with which new financial insights can be unlocked to support strategic decisions apropos to procurement. Likewise, in February 2020, McKinsey acquired Orpheus GmbH, a provider of spend analytics and a digital procurement innovator. In 2021, Banyan Software acquired spend analytics provider Atamis. Similarly, in the same year, Onventis acquired Spendency, a Swedish specialist in spend analytics in a bid to expand its product offering. In September 2021, Bodhala was acquired by Onit.
Few of the k1ey players in the spend analytics market include IBM Corporation, Coupa Software, SAS Institute Inc., SAP SE, JAGGAER, Zycus Inc., BravoSolution SPA, Proactis, Ivalua and Rosslyn Analytics.
Key Elements Included In The Study: Global Spend Analytics Market
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