Procurement market

What is a procurement market?

A procurement market is a place where materials, resources and services necessary for the operation of a company can be purchased. It can be merchandise, raw materials, semi-finished products or even employees. A procurement market can therefore be a physical market or an electronic web-based platform. The procurement market stands opposite the sales market, where products and services are sold.

The procurement market is constantly changing and is influenced by certain trends. Current trends include sustainability and digitalization. This means that ordering processes are increasingly paperless, triggered without human intervention and booked automatically. One example of the digitalization of procurement markets are electronic marketplaces for so-called e-procurement. Electronic marketplaces increase the number of potential suppliers, lead to leaner processes and cost savings.

In addition, the products and services procured must increasingly meet strict sustainability criteria – for example, they must be climate-friendly or recyclable. Behind this is the conviction of many companies that they want to act ethically and at the same time secure a competitive advantage.