Corporate Treasury Management Software Industry Procurement Outlook
Corporate treasury management software is an application that aims to automate the process of managing a company’s financials such as cash flows, assets management, investment, earnings, and other such operations. Some of the basic functionalities of treasury management software are to manage cash in real-time, forecast cash flows, payment reconciliation, debt management, managing trade finances and automate other financial service offerings.
Corporate treasury management software providers price their services differently as per their customer’s requirements. One of the most commonly used pricing schemes is fixed pricing. However, these are applied for projects that are small and not complex in nature. Depending upon the complexity of projects, outcome-based or value-based pricing is applied. This pricing scheme is applied mostly for customers with a larger pool of functionalities and higher interdependencies among the functions.
Corporate Treasury Management Software Industry Demand Outlook
The global market for corporate treasury management software was valued at USD 1.1 billion in 2020 and it is expected to grow at a CAGR of 6.5% to reach an estimated value of USD 1.5 billion by 2025. While the market is presently driven by both on-premise as well as cloud-based deployments, cloud-based deployments are expected to grow faster than on-premise installations and occupy the majority of the market by 2025. From an end-user perspective, banks are expected to be the largest consumers of corporate treasury management software. Not only would this help them automate several processes but also omit human-related error and reduce time with inter-functional dependencies
Corporate Treasury Management Software Industry Cost Drivers
Two major reasons that are prompting the uptake of corporate treasury management software are the high adoption of automation systems and providing clear and documented audit trails. Both these objectives also come with reducing dependencies among the different functions conducted by an organization and omitting human error. Implementation of blockchain technologies in the future will help in reducing the cost of operation significantly.
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Add-on Services provided by Grand View Research Pipeline:
Should Cost Analysis - A should cost model is an all-important technique for deriving and forecasting the actual cost of a product/service over the forecasted period. It serves as a competitive edge for supplier negotiations by determining the actual price for the cost components. The outcome helps procurement leaders to understand detailed fact-based cost drivers for the category.
Rate Benchmarking - Every organization and its procurement team wants to negotiate the best deal while procuring a set of products or services. Rate benchmarking uses price/cost comparison of more than one set of products/services to analyze the most efficient combination that will help the procurement team to get the optimum rate.
Salary Benchmarking - Labor is one of the key cost components incurred while offering a product or service. Understanding the pricing structure of salary is important for organizations in selecting the appropriate supplier and to build a good negotiation strategy. It is also an important factor in determining whether the category under focus should be outsourced or built in-house.
Supplier Newsletter - It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face, and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
