The Vendor Management Software Market is expected to grow at a CAGR of 14% over the forecast period (2020-2025). Vendor management involves initiating and grooming the relationships the suppliers of the goods and services a buyer needs for day to day operations.
- The increasing need for reducing the risks, making faster decisions has paved the way for the vendor management software to be integrated with the Vendor Management Software Market.
- The lack of availability of vendor information and vendor performance exposes the company to increased supply risk and prevents the company's ability to act proactively in dire situations thereby making it imperative for them to look for solutions like VMS that could navigate them through such situations thereby fueling the growth of the VMS throughout the forecast period.
- The increasing need to minimize the administrative cost is one of the important factors that could drive the growth of the VMS market over the forecast period. Also, it is very important for the regulated companies to ensure that the third-party goods and services comply with applicable laws, regulations and best practices making VMS a necessity for such companies.
- However, the high implementation and maintenance cost is one such factor that could play a vital role in hindering the growth of the VMS market over the forecast period.
Scope of the Report
A vendor management software provides with a platform that allows the user or companies to manage or secure the staffing services on permanent, temporary or contractual basis. This report segments the market by Deployment (On-premise, Cloud), End-user Industry (retail, BFSI, Manufacturing, It & Telecom, Other End-user Industry), and Geography.
Key Market Trends
Retail Sector is Expected to Hold the Largest Share
- The retail industry depends on many third-party vendors and suppliers for their inventory. This makes retailers prone to many risks. Therefore it becomes imperative for these retailers to look for the solutions that help them mitigate such risks. This is expected to boost the demand for the vendor management software market over the forecast period.
- Quantivate's supplier and vendor management for retail allow the retailers to identify potential supplier risks, verify that suppliers are compliant, and continue to monitor changes that can create new risks.
- The increasing trend in retail sales activities has made vendors to better serve not only their customers but has made maintaining healthy relationships with their suppliers equally important. A vendor management software allows the vendor in satisfying both the parties thereby fueling the demand for the VMS over the forecast period
- The fluctuating market conditions and consumer trends are responsible for the varying Product pricing and promotion which makes it important for the retailers to adjust and adapt to such changes quickly. The VMS helps the retailers in achieving this need thereby boosting the growth of the market over the forecast period.
North America to Enjoy the Highest share
- The region has a well-established distribution channel for all types of retail companies which makes it imperative for the vendors to effectively and efficiently manage the entire distribution channel and VMS provides a perfect solution to the question.
- The US retail industry is undergoing two significant transitions one being the technological and the other being the result of the changes in consumer behavior. This is expected to boost the demand for the VMS in the region over the forecast period.
- According to The U.S. Census Bureau, the retail trade sales were up 0.5% (±0.5% )* from April 2019, and 3.1% (±0.7% ) as compared to 2018. This increase is expected to fuel the growth for the VMS in the region throughout the forecast period.
- With the banking and the financial institutions also relying on the third-party vendors for many of its operations it becomes very important for these institutions to embrace a robust-third party vendor management program that helps them in assessing, measuring, monitoring, and controlling such risks.
- Some of the prominent players in the region are providing such software solutions that help these institutions mitigate or terminate such risks thereby boosting the market in the region.
- For instance, Ncontracts LLC's vendor enables financial institutions to achieve and maintain regulatory compliance with third-party vendor regulations and guidance.
The competitive rivalry in the vendor management software market is high owing to the presence of some key players like IBM, SAP SE and many more. Their ability to continually innovate their offerings according to the needs and wants in the market has allowed these players to gain a competitive advantage over their competitors. Strategic partnerships, mergers, acquisitions and hefty investments in research and development activities have allowed the players in the market to gain a strong foothold in the market.
- October 2018 - IBM Corporation announced that the company has entered into a definitive agreement with Red Hat, the world's leading provider of open source cloud software, under which IBM would acquire Red HAT's all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total enterprise value of approximately USD 34 billion.
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