Vendor Management Software Industry Overview
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Vendor Management Software Market Analysis
The Vendor Management Software Market is expected to grow at a CAGR of 14% over the forecast period. Vendor management involves initiating and grooming the relationships with the suppliers of the goods and services a buyer needs for day-to-day operations.
- The increasing need for reducing risks and making faster decisions paved the way for 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. It prevents the company's ability to act proactively in dire situations, making it imperative for them to look for solutions like VMS that could navigate them through such situations, fueling the growth of the VMS throughout the forecast period.
- Additionally, the growing adoption of cloud-based software due to government initiatives are expected to drive market growth. For instance, the DOD intends to invest around USD 38.6 billion in unclassified IT in the fiscal year 2022. OMB mandates that agencies update, phase out, or combine their portfolios of software programs to promote cloud usage.
- The increasing need to minimize administrative costs is one of the crucial factors that could drive the VMS market growth over the forecast period. Also, the regulated companies must 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 VMS market growth over the forecast period.
- Organizations had several challenges managing suppliers during the COVID-19 pandemic, as worldwide supply chains were interrupted due to strict restrictions and lockdowns enforced by governments worldwide. Industries that were heavily impacted by the crisis, such as banking and finance, manufacturing, energy, and retail and consumer goods, witnessed a decrease in the usage of vendor risk management systems.
Vendor Management Software Industry Segments
A vendor management software provides a platform that allows the user or companies to manage or secure the staffing services on a permanent, temporary or contractual basis. A vendor management system can assist many businesses in managing their external workforce more efficiently. Users can save contact information for vendors, view expenditures, maintain track of contracts, automate vendor onboarding, pay vendors directly, and more with this end-to-end platform. This report segments the market by deployment (on-premise, cloud), end-use industry (retail, BFSI, manufacturing, IT & telecommunications, and other end-user industries), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are in terms of value (USD million) for all the above segments.
|By End-user Industry|
|IT & Telecommunications|
|Other End-user Industries|
|Middle East and Africa|
Vendor Management Software 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. It makes retailers prone to many risks. Therefore it becomes imperative for these retailers to look for solutions that help them mitigate such risks. It is expected to boost the vendor management software market demand over the forecast period.
- Quantivate's supplier and vendor management for retail allow retailers to identify potential supplier risks, verify that suppliers are compliant, and continue to monitor changes that can create new chances.
- The companies in the industry are involved in various strategies to maintain their market position. For instance, in August 2022, Volt Systems, a digital firm that offers suppliers more on-demand access to merchandising resources, was acquired by Walmart.
- The increasing trend in retail sales makes vendors serve their customers better, and maintaining healthy relationships with their suppliers is equally important. Vendor management software allows the vendor to satisfy both parties, 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 essential for retailers to adjust and adapt to such changes quickly. The VMS helps retailers achieve this need, boosting the market's growth over the forecast period.
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North America is Expected to Hold Significant Market Share
- The region includes a well-established distribution channel for all retail companies, making it imperative for the vendors to effectively and efficiently manage the entire distribution channel. 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. It is expected to boost the demand for VMS in the region over the forecast period.
- According to The US Census Bureau, total retail sales at the end of 2021 were roughly 6.6 trillion dollars, an increase of around USD 1 billion from the previous year. This increase is expected to fuel the VMS growth in the region throughout the forecast period.
- The government's increased funding of SME development is anticipated to fuel the demand for vendor management software. For instance, in August 2022, the US Department of Treasury approved an additional batch of four state proposals for up to USD 750 million in funding under State Small Business Credit Initiative (SSBCI). Treasury announced financial approvals totaling more than USD 2.25 billion to support small company growth through SSBCI.
- With banking and financial institutions relying on third-party vendors for many of their operations, it becomes essential for these institutions to embrace a robust third-party vendor management program that helps them assess, measure, monitor, and control such risks. Some of the prominent players in the region are providing software solutions that help these institutions mitigate or terminate such threats, thereby boosting the market in the area. For instance, Ncontracts LLC's Nvendor enables financial institutions to achieve and maintain regulatory compliance with third-party vendor regulations and guidance.
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Vendor Management Software Market Competitor Analysis
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 of the market allowed these players to gain a competitive advantage over their competitors. Strategic partnerships, mergers, acquisitions, and hefty research and development investments have allowed the market players to gain a strong foothold.
- August 2022 - Volt Systems, a software firm specializing in vendor management and product monitoring, was acquired by Walmart. According to a news statement from the company, Volt System's staff, technology, and client contracts will get transferred to Walmart as part of the transaction.
- November 2022 - Cloud5 Communications, a primary provider of technology and communications solutions to over 5,000 MDUs, hotels, and commercial buildings throughout the Americas, announced the release of its vendor Management system. Vendor Management uses the Project Management Office for Cloud5's extensive experience.
- July 2022 - TD SYNNEX announced the opening of its Independent Software Vendor (ISV) experience. The ISV experience is created to aid in accelerating Software-as-a-Service (SaaS) possibilities in the channel by leveraging the ecosystem of TD SYNNEX partners to power IT operations, automate challenging tasks and introduce new features and functionality. It is to increase sales, improve go-to-market strategies, and produce successful business outcomes.
Vendor Management Software Market Top Players
Intelex Technologies Inc.
*Disclaimer: Major Players sorted in no particular order
Vendor Management Software Market Recent Developments
- May 2022: CUNA Strategic Services (CSS) chose CUVM, the LEVERAGE vendor management system, as one of only two alliance suppliers of vendor management solutions. CSS builds strategic partnership agreements to provide credit unions with cutting-edge solutions that promote member development and operational excellence. Through this agreement, credit unions will access the whole range of vendor management and regulatory due diligence products and services that CUVM provides.
- March 2022 - PayMyTuition, a leading supplier of technology-driven online payment solutions for tuition administration and campus commerce, announced the introduction of their breakthrough automatic vendor management software for schools and universities through an integrated collaboration with Datasoft Global Technologies. It is a worldwide software engineering organization supplying corporate software solutions to the financial services industry. This launch, which complements their previous all-in-one solution offering, will safeguard educational institutions' reputations and security protocols by limiting access to prohibited nations while streamlining their vendor payment process.
Vendor Management Software Market Report - Table of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increasing Need to Minimize the Administrative Costs
4.3.2 Increased Adoption of Cloud Based Computing
4.4 Market Restraints
4.4.1 High Implementation and Maintenance Cost
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact on the Industry
5. MARKET SEGMENTATION
5.1 By Deployment
5.2 By End-user Industry
5.2.4 IT & Telecommunications
5.2.5 Other End-user Industries
5.3 By Geography
5.3.1 North America
5.3.4 Latin America
5.3.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 MasterControl, Inc.
6.1.2 Intelex Technologies Inc.
6.1.3 IBM Corporation
6.1.4 SAP SE
6.1.5 HICX Solutions.
6.1.6 Coupa Software Inc.
6.1.8 Ncontracts LLC
6.1.9 LogicManager, Inc.
6.1.11 MetricStream Inc.
6.1.12 Quantivate, LLC.
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vendor Management Software Market Research FAQs
What is the study period of this market?
The Vendor Management Software Market market is studied from 2018 - 2028.
What is the growth rate of Vendor Management Software Market?
The Vendor Management Software Market is growing at a CAGR of 14% over the next 5 years.
Which region has highest growth rate in Vendor Management Software Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Vendor Management Software Market?
North America holds highest share in 2022.
Who are the key players in Vendor Management Software Market?
Intelex Technologies Inc., MasterControl, Inc., MetricStream Inc., SAP SE, IBM Corporation are the major companies operating in Vendor Management Software Market.
Vendor Management Software Industry Reports
In-depth industry statistics and market share insights of the Vendor Management Software sector for 2020, 2021, and 2022. The Vendor Management Software research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Vendor Management Software report PDF.