Retail Sourcing and Procurement Market Size

Retail Sourcing and Procurement Market Size

Retail Sourcing and Procurement Market size was valued at USD 4.1 billion in 2023 and is estimated to register a CAGR of over 10% between 2024 and 2032. The growth of the market is driven by factors such as digital transformation and globalization of supply chain. This leads to the increased demand for comprehensive sourcing and procurement solutions that can handle multi-country operations. Technologies such as AI, machine learning, and blockchain are being utilized to optimize sourcing and procurement operations.

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Major players in the retail sourcing and procurement market are continuously innovating to provide more efficient and intelligent solutions. For instance, in February 2024, Coupa Software announced the launch of its new AI-powered procurement platform, which aims to enhance procurement efficiency through automation. This platform helps retailers reduce costs and improve decision-making processes.

Additionally, there is a growing emphasis on sustainability and ethical sourcing. Retailers are emphasizing on the importance of environmentally friendly supply chain, which is creating a demand for advanced procurement solutions capable of tracking and verifying compliance with sustainability standards. Leading companies in the procurement sector are leveraging artificial intelligence to enhance their offerings and provide more value to their clients.

For instance, in October 2023, SAP unveils new generative AI innovations that boost productivity and effectiveness in procurement. It will help procurement professionals build comprehensive and effective category strategies faster. Which will help in cost saving, increasing efficiency, and managing relationships efficiently.

The retail sourcing and procurement market faces numerous challenges such as supply chain disruption and supplier relationship management. These disruptions can stem from various sources, including natural disasters, geopolitical tensions, global health crises, and sudden changes in consumer demand. Additionally, there is a challenge of aligning supplier capabilities with rapidly changing consumer preferences and market trends. Failure to manage these relationships effectively can lead to quality issues, delivery delays, increased costs, and potential reputational damage, thus hindering market growth.