20 Years Of Procurement And Spreadsheets: An Accelerated Decline?

Here is the link to everything I have written about spreadsheets in the Procurement Insights blog since 2007.

So, here is the big question: Is procurement’s use of spreadsheets on the decline?

Estimated Year-by-Year Spreadsheet Usage (2005–2025)

Below is an estimated percentage of organizations using spreadsheets for procurement or related tasks, based on available data and inferred trends. Percentages are approximate, reflecting global organizations across industries, with a focus on procurement.

Year	Estimated % Using Spreadsheets	Rationale and Evidence
2005	98%	Spreadsheets (Excel dominant) were the primary tool for procurement tasks due to limited ProcureTech. Microsoft Office’s ubiquity (Excel launched 1987) ensured near-universal adoption.
2006	98%	Minimal change; early ProcureTech (e.g., Ariba) was niche, and spreadsheets remained standard for supplier data and budgeting. Sourcing Innovation (launched 2006) notes their prevalence.
2007	97%	Slight decline as early cloud solutions emerged, but spreadsheets dominated due to familiarity and cost. Procurement Insights (2007) highlights manual processes.
2008	97%	Financial crisis increased reliance on cost-effective tools like Excel. Strategic Sourceror (2008) cites spreadsheets for sourcing analytics.
2009	96%	Minor shift as SaaS platforms (e.g., Coupa founded 2006) began scaling, but spreadsheets persisted for small-medium enterprises (SMEs).
2010	96%	Spreadsheets remained dominant; CIPS blog notes their use in procurement despite growing e-procurement interest.
2011	95%	Cloud-based ProcureTech gained traction, but spreadsheets were entrenched. Web results suggest high usage in SMEs and legacy systems.
2012	95%	Oracle/Accenture survey: 70% of executives used spreadsheets for financial reporting, implying higher overall usage (90%+) for procurement tasks.
2013	94%	Gradual decline as ProcureTech matured (e.g., Ivalua, GEP expanded). Spreadsheets still critical for non-digitalized firms.
2014	94%	Continued reliance on spreadsheets; Enterprise Times (2017) notes 60% U.S. business usage in 2017, suggesting higher rates earlier.
2015	93%	AI adoption (10% of organizations per Exploding Topics) began reducing manual tasks, but spreadsheets remained prevalent.
2016	93%	Cloud-based spreadsheets (Google Sheets) grew, maintaining high usage. Dresner (pre-2023) cites >90% for financial tasks.
2017	92%	Enterprise Times: 60% U.S. businesses used Excel, but global usage likely higher due to SMEs and emerging markets.
2018	92%	Robert Half (2018) notes Excel’s role in finance, implying broad procurement use. Cloud ProcureTech adoption accelerated.
2019	91%	AI usage surged to 37% (Exploding Topics), reducing spreadsheet reliance. Dresner: >90% for financial reporting.
2020	91%	COVID-19 increased digitalization, but spreadsheets persisted for remote work. Spreadsheet.com survey confirms widespread use.
2021	90%	Go Beyond: 1.1–1.5 billion Excel users, implying near-universal organizational use. Google Sheets gained share in SMEs.
2022	90%	ThoughtSpot: 92% of professionals used spreadsheets, with 40% struggling. Digital transformation prioritized (75% of firms per Statista).
2023	89%	AutoRek: 90% reliance on spreadsheets. McKinsey: 73% of supply chain executives used basic tools, suggesting slight decline.
2024	88%	Continued ProcureTech growth (5,000+ solutions) reduced spreadsheet reliance, but familiarity maintained high usage.
2025	85–90%	AutoRek: 90% usage, adjusted downward for ProcureTech adoption (CAGR 7.8% in spreadsheet software market).

Trend Analysis

• 2005–2010: Near-universal usage (96–98%) due to Excel’s dominance and limited ProcureTech alternatives. Spreadsheets were the default for procurement tasks like supplier tracking and cost analysis.
• 2011–2015: Gradual decline (93–95%) as cloud-based ProcureTech (e.g., Coupa, Ivalua) scaled and SMEs adopted Google Sheets. Financial crises reinforced cost-effective tools like Excel.
• 2016–2020: Steady usage (91–93%) with cloud spreadsheets boosting accessibility, but AI and SaaS platforms began eroding reliance, especially in large enterprises.
• 2021–2025: Accelerated decline (85–90%) driven by digital transformation (75% of firms adopting AI/cloud per Statista) and ProcureTech growth. Spreadsheets remain critical for SMEs and ad-hoc tasks.

Influence on Procurement in 2025

Spreadsheets’ influence in procurement aligns with the prior answer, with specific relevance to the usage data:

• Positive: High usage (85–90%) reflects spreadsheets’ role in quick tariff cost modeling (e.g., 145% Chinese tariffs), supplier bid comparisons, and legacy data storage, especially for SMEs.
• Negative: Manual errors (88% of spreadsheets have errors per Dresner), scalability issues, and compliance risks (e.g., GDPR, ESG) drive adoption of ProcureTech for real-time supplier management and tariff mitigation.

Projected Usage Percentages (2025 – 2045)

Below is an estimated percentage of organizations using spreadsheets for procurement, with key milestones:

MODEL 1

Year	Estimated % Using Spreadsheets	Rationale
2025	87.5%	Baseline from AutoRek (90%) and McKinsey (73%), adjusted for ProcureTech growth.
2030	80%	1.5% annual decline as ProcureTech reaches $17.01 billion by 2032, and 50% of firms adopt AI/IoT. SMEs maintain spreadsheet use.
2035	70%	2% annual decline as cloud platforms and ESG tools proliferate. Blockchain and compliance needs reduce manual processes.
2040	55%	3% annual decline as AI automates 80%+ of tactical tasks, and global regulations mandate digital systems. Large enterprises fully transition.
2045	40%	3% annual decline stabilizes as spreadsheets persist for niche tasks in SMEs and emerging markets. Digital platforms dominate with $50 billion+ market.

MODEL 2

Year	% of Procurement Teams Primarily Using Spreadsheets	Key Trend Drivers
2025	~65–70%	Widespread reliance in mid-market and legacy enterprises; Excel remains dominant for spend tracking and supplier management.
2030	~45–50%	Major shift to cloud-based procurement platforms; AI-powered intake-to-pay and sourcing automation gain adoption.
2035	~25–30%	Agentic AI, low-code/no-code analytics, and real-time procurement orchestration reduce Excel dependency.
2040	~10–15%	Only legacy systems and niche use cases rely on spreadsheets; near-total shift to integrated, intelligent platforms.
2045	~5% or less	Spreadsheets become largely obsolete in strategic procurement, retained only for ad hoc or non-critical analysis.

MODEL 3

Year	Estimated % of Procurement Teams Using Spreadsheets	Notes/Trends
2025	67%	Majority still rely on spreadsheets; 46% as primary tool
2030	40%	Rapid adoption of AI-driven and integrated platforms
2035	20%	Advanced automation, collaboration tools widespread
2040	10%	Spreadsheets mostly for niche/legacy cases
2045	5%	Minimal use; nearly all processes digitized/automated

MODEL 4

TODAY’S QUESTION: Regarding spreadsheet use over the next 20 years, which of the four model projections above gets it right, and why?

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