Vendor Management Software Global Market Report 2024

The vendor management software market size has grown rapidly in recent years. It will grow from $8.99 billion in 2023 to $10.32 billion in 2024 at a compound annual growth rate (CAGR) of 14.9%. The growth observed in the historical period can be attributed to several factors, including the transition towards digitalization, heightened levels of outsourcing, a growing demand for transparency, compliance requirements with regulatory standards, and the complexity of supply chains.

The vendor management software market size is expected to see rapid growth in the next few years. It will grow to $18.25 billion in 2028 at a compound annual growth rate (CAGR) of 15.3%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing complexity within vendor ecosystems, heightened emphasis on compliance and risk management, a focus on cost optimization and efficiency measures, the expansion of the gig economy and contingent workforce, and a growing demand for real-time data and analytics capabilities. Major trends expected during this period include the widespread adoption of cloud-based solutions, increased utilization of artificial intelligence technologies, ongoing product innovations, collaborative partnerships, and strategic investments.

The burgeoning retail industry is poised to drive the expansion of the vendor management software market in the foreseeable future. The retail sector, comprising businesses that directly sell goods and services to consumers for personal or household use, is experiencing growth fueled by various factors including increased consumer spending, the proliferation of e-commerce channels, shifting consumer preferences, and the globalization of markets. Vendor management software plays a crucial role in helping retailers optimize supplier relationships, enhance inventory management, control costs, ensure compliance, and streamline product lifecycle management. These functionalities ultimately contribute to bolstering operational efficiency and gaining a competitive edge in the retail landscape. For example, as reported by the Census Bureau of the Department of Commerce in February 2024, total retail sales for the fourth quarter of 2023 amounted to$1.83 trillion, marking a 0.4% increase from the third quarter of 2023. This uptrend underscores how the flourishing retail industry is catalyzing the growth of the vendor management software market.

Leading companies in the vendor management software market are innovating by introducing new products such as automated vendor management software to drive efficiency, streamline processes, and cater to the evolving needs of businesses. Automated vendor management software simplifies vendor onboarding, facilitates performance tracking, and streamlines contract management processes through advanced automation and workflow capabilities. For instance, in March 2022, PayMyTuition, a Canada-based company specializing in automated vendor management software, unveiled an automated vendor management solution tailored for colleges and universities. This solution empowers educational institutions to optimize payment processing methods, manage invoices, and seamlessly integrate with their existing student information systems. Notably, the software features an innovative vendor payments module and automated vendor management capabilities, revolutionizing how educational institutions handle international business payments.

In August 2022, Walmart Inc., a prominent US-based retail corporation, acquired Volt Systems for an undisclosed sum. This strategic acquisition underscores Walmart's commitment to advancing its omnichannel capabilities and enhancing the shopping experience for its customers. By leveraging Volt Systems' expertise in vendor management and product tracking, Walmart aims to bolster its ability to plan, forecast, and optimize product assortment effectively. Volt Systems, headquartered in the US, specializes in providing software solutions for vendor management and product tracking, aligning with Walmart's strategic vision to drive innovation and efficiency in the retail sector.

Major companies operating in the vendor management software market are Workday Inc., GEP SMART, SAP Ariba, PRO Unlimited, Upwork Global Inc., Field Nation, Zycus Inc., Jaggaer, Tipalti, Esker, Coupa Software Inc., WorkMarket, Beeline, BirchStreet Systems, UpGuard Inc., Vroozi, ProcurePort, EC Sourcing Group, Intelex Technologies, Rosslyn Data Technologies.

North America was the largest region in the vendor management software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vendor management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vendor management software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Vendor management software is a digital solution aimed at optimizing and automating the management of vendor relationships, covering aspects such as vendor onboarding, performance assessment, contract administration, and procurement processes. It facilitates the creation, negotiation, and monitoring of vendor contracts and agreements, offering tools for drafting contract templates and tracking contract milestones and deliverables.

The primary types of vendor management software include procurement and sourcing software, vendor analytics and reporting software, vendor contract management software, vendor information management software, vendor onboarding and compliance software, vendor performance management software, and vendor relationship management software. Procurement and sourcing software streamline the sourcing process by assisting in vendor selection, negotiation, and purchase order management. These solutions are available through cloud-based or on-premises deployment models, catering to enterprises of varying sizes including large corporations, small and medium enterprises (SMEs), and serving diverse end-users such as banking, financial services and insurance, energy and utilities, government, healthcare, IT and telecommunications, manufacturing, retail, and consumer goods industries.

The vendor management software market research report is one of a series of new reports that provides Vendor management software market statistics, including Vendor management software industry global market size, regional shares, competitors with a Vendor management software market share, detailed Vendor management software market segments, market trends and opportunities, and any further data you may need to thrive in the Vendor management software industry. This Vendor management software research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The vendor management software market consists of revenues earned by entities by providing services such as performance tracking, contract management, compliance monitoring, invoice processing, and communication facilitation. The market value includes the value of related goods sold by the service provider or included within the service offering. The vendor management software market also includes sales of backup systems, storage devices, mobile devices, network equipment, and security equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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