The Supplier Relationship Management Software Market is rising at a steady pace. In this post, Kodiak Hub took a look at some of the statistics that have impacted SRM up until 2022, and give a glimpse of what the future entails for this exciting ProcureTech software segment!
The Supplier Management Software Market has a projected CAGR of 14% over the period 2021-2026 (MordorIntelligence, 2021). This is way above the overall 8,6% projected growth the entire segment, Enterprise Software, is forecasted to see (Statista, 2021).
42% of the growth will come from North America (Technavio).
CRM and SRM are closely related to each other but revolve in different spaces. Even if the use and valuation of Supplier Relationship Management Software is growing at record speed, it still has a long way to go before it's up there with Hubspot, Salesforce, Marketo, etc. For now, SRM will have to do with being that nagging little sibling pulling on the pantlegs of their older siblings wanting to be included.
But, as Procurement Teams around the world start to understand the massive value SRM can bring, our guess is that the SRM software category will soon be included in all of CRM's-
WBR Insights & Coupa asked 200 CPOs whether they have the right metrics and data to measure and monitor their supply chain health. Only 24% answered yes.
Sounds good considering the supply chain disruptions we've seen during the past years... ? NOT...
This statistic indicates that there's still some substantial Digital Transformation to be done among procurement teams. Data & KPI management are two areas procurement teams will have to buckle down during the coming years to truly achieve tactical & strategic excellence.
BCI's Supply Chain Resilience Report 2021 said that only 56% of Procurement Teams use Technology to follow up on Supplier Performance that can cause Supply Chain Disruptions. 44% of procurement teams still don't have any solutions in place to manage supplier performance.
Kodiak Hub's prediction is that the number of teams that are using technology for this will increase during 2022.
Don't believe us... Check out Top Stat number 6 😏
Supplier Performance Management & Supplier Risk Management are both important parts of an SRM solution and SRM strategy.
When Procurement Leaders asked 180 CPOs around the world what type of tools they would focus on during 2022 - SPM & Supplier Risk Management came out on top in places 1 and 2.
A majority of the market is shifting towards adopting a Best-Of-Breed strategy when it comes to picking Procurement Technology during 2022 (Procurement Leaders CPO Compass 2022).
It's no wonder... Procurement practitioners are fed up with outdated, legacy, and homegrown technologies; realizing all-in-one procurement solutions, don’t have all they want.
Procurement Leaders CPO Compass also showed us which actions Chief Procurement Officers are taking to address ESG Goals: 79% said implementing Sustainability KPI's on Supplier Scorecards, 75% plan to incorporate sustainability due diligence into sourcing, and 62% will perform ongoing sustainability reporting by suppliers.
Sustainability lives on as a Macro Trend in 2022, and this stat suggests that procurement teams plan to do their part in corporate sustainability initiatives, cracking down on supplier management activities to ensure more sustainable procurement practices.
The 3rd Edition of PwC’s 2020-21 Digital Procurement Survey found that “Among the key success factors for digital transformation projects, adapting procurement processes to the chosen solution and investing heavily in change management are identified as major factors, while the choice of technology or integrator is less important”. (PWC 2020)
AI, ML, RPA, Blockchain, and a whole lot more technology buzzwords have been on the tips of everyone's tongues during the past 5 years. Interestingly enough, this statistic suggests that the real driver of digital transformation of procurement is a team's ability to adapt & change; less so the technology itself.
Out of 348 companies asked 65% said Supplier Relationship Management was the most effective aspect in mitigating the effects of covid-19 (State of Flux SRM Study, 2021)