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Los Angeles, California (PRWEB) March 31, 2014
The procurement software market exhibits a buyer power score of 3.9 out of 5, which means buyers wield above-average influence in the procurement software market. Most of this power is an outgrowth of the availability of free procurement software, says IBISWorld research analyst Dale Schmidt. These versions do not have near the robustness or functionality of their paid counterparts, but buyers have been able to leverage their existence to force down prices. The stable, yet falling, prices allow buyers to devote extra time to find the deal that is right for them.
Despite competition from gratis software, procurement software vendors still have considerable market elements in their favor. According to Schmidt, Buyers can leverage this zero-cost software to lower prices, but for buyers needing a procurement software suite with the robustness of the paid offerings, they are facing increasingly fewer options. The market's larger vendors have been systematically buying up the smaller competition, leaving fewer choices for buyers. The choices that buyers are left with are often difficult to compare due to the high degree of product specialization. This nature and the lack of effective substitutes allow developers to generate massive profit margins, especially for high-cost offerings, which cannot be duplicated by free software. As a result, the price declines in recent years have not hurt their bottom lines significantly.
On the plus side, buyers can rest assured that most vendors are in secure financial shape and do not need to worry about possible bankruptcies or service interruptions. The market for procurement software spans most sectors of the economy. As a result, though some of these markets are high risk; the diversification of markets prevents significant sales shortfalls from occurring across the board. The minimal risk of supply shocks and the diversification of markets leads to a low supply chain risk for publishers. The low supply chain risk and steadily rising sales result in low bankruptcy risk for most publishers, which is a positive for buyers. Current major vendors include SAP, Oracle, IBM, JDA Software Group, Epicor and GT Nexus. For more information, visit IBISWorlds Procurement Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of procurement software, which aids and tracks the activities of a company's procurement department. The software works in every part of the procurement process, from the drafting of requests to buyer selection, invoicing, payment and receipt verification.
Executive Summary Pricing Environment Price Fundamentals Benchmark Price Pricing Model Price Drivers Recent Price Trend Price Forecast Product Characteristics Product Life Cycle Total Cost of Ownership Product Specialization Substitute Goods Regulation Quality Control Supply Chain & Vendors Supply Chain Dynamics Supply Chain Risk Imports Competitive Environment Market Share Concentration Market Profitability Switching Costs Purchasing Process Buying Basics Buying Lead Time Selection Process Key RFP Elements Negotiation Questions Buyer Power Factors Key Statistics
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Buying Time: Procurement Software Procurement Category Market Research Report Now Available from IBISWorld