How is Technological Advancement Impacting the Retail Sourcing and Procurement Sector?
Technological advancement is a key driver of change within the sourcing and procurement sector of the retail industry. With effective implementation of advanced technologies such as artificial intelligence (AI), machine learning and blockchain, companies are achieving greater efficiency in their sourcing and procurement processes. Real-time tracking of deliveries, improved supply chain visibility, and predictive analytics for demand forecasting are other benefits achieved through technological innovation.
What are the Expectations for Growth in the Sector?
The sector is projected to witness significant growth, powered by evolving consumer demands and digital transformation trends. This includes a growing preference for enhanced shopping experiences, forcing retailers to reevaluate their sourcing strategies. As the sector evolves to become more consumer-centric and data-driven, companies are forced to innovate and adapt. The global retail sourcing and procurement market is expected to grow considerably, reflecting the trends driving change in the sector.
What are the Challenges in Achieving Sustainable Growth?
However, amidst these opportunities for growth lie challenges. The integration of new technologies into existing framework, data privacy concerns and increased complexity of supply chains pose as barriers for sustainable growth. Additionally, the competition in the retail sector is intensifying, necessitating more exceptional performance and innovation in the sourcing and procurement sector. Despite these challenges, strategic planning, adept use of technology and emphasis on sustainability could facilitate sustainable growth in the sector.
Key Indicators
- Total Procurement Spend
- Supplier Concentration Ratio
- eProcurement Adoption Rate
- Cost Saving Percentage Due to Sourcing
- Procure-to-Pay Cycle Time
- Contract Compliance Rate
- Spend Under Management
- Return on Investment for Procurement Technology
- Supplier On-Time Delivery Performance
- Number of Single-Sourced Items
Key Trends
- Adoption of digital technologies
- Utilization of Big Data and predictive analytics
- Growth of Artificial Intelligence (AI) and Machine Learning (ML) in procurement
- Increased demand for cloud-based procurement solutions
- Integration of sourcing and procurement processes
- Rise of collaborative supplier relationships
- Shifting towards ethical sourcing
- Impact of social, economic and environmental sustainability on procurement strategies
- Importance of risk management in sourcing
- Growth in mobile procurement solutions