After a sluggish 2009, the ePurchasing market will grow 12 percent this year, rising to $4 billion, predicts a new study from the technology and market research company Forrester Research.
Forrester defines the ePurchasing market as software products like eProcurement, eSourcing, contract life-cycle management (CLM), automated spend analysis, accounts payable electronic invoice presentment and payment (AP-EIPP), services procurement, supplier risk and performance management, and supplier network services. And the report forecasts that among these, the hottest segment will be supplier risk and performance management, with 2010 growth of almost 40 percent.
Naturally, that's significant news for Aravo but, as you might expect, no one here is surprised. Recent surveys have shown a tremendous need for supply chain risk management processes. And with expanding global supply chains, an ever-evolving regulatory and compliance environment, and the unpredictable economy, it's more important than ever to start formally managing supplier risk. The costs (to production, sales, reputation) associated with an undisciplined approach are simply too great to ignore.
The report also found that automated spend analysis, CLM, services procurement, and supplier network services will grow at rates in the high teens, compared with the low teens in 2009.
More about Forrester's "Predictions 2010: ePurchasing Market" report is available here and at this review from Purchasing.com.