PROCUREMENT

QUANTIFYING THE VALUE OF

TECHNOLOGY WITHIN

SAP Ariba, 2019 CPO Survey

of CPOs believe digital transformation will have a greater effect on procurement in 2019 than in 2018

82%

Digitalisation within procurement is growing year-on-year...

Roles, skills profiles and needs

73%

The Hackett Group, 2019 CPO Agenda

32%

CPOS CAN SEE HOW DIGITAL TRANSFORMATION WILL IMPACT PROCUREMENT

56%

In 2 years

Now

31%

Achievement of enterprise objectives

60%

Performance (e.g., cost, quality, cycle time)

78%

Service delivery model

40%

We haven’t invested in digital, but plans are in place

We are significantly ahead of our competitors

2%

28%

21%

We are behind our competitors

38%

Efficio The Human Factor, 2019

TO WHAT EXTENT IS YOUR PROCUREMENT FUNCTION OUTPACING COMPETITORS BECAUSE OF INVESTMENTS IN TECHNOLOGY?

We are just keeping up with our competitors

While organisations clearly understand that technology can deliver a wide range of benefits…

10%

But the impact technology can have, particulary on generating a competitive advantage, is not yet fully being realised…

We are somewhat ahead of our competitors, but they are catching up

Better fact-based decision making

Efficio, Procurement 2025, 2018

Access to new markets and opportunities

Proactive managmeent of spend via predictive models

BENEFITS OF TECHNOLOGY TO PROCUREMENT

27%

31%

32%

Better supply chain engagement

More sustainable savings

…the realisation of those benefits is being inhibited by a lack of adequate support and skills…

Technology is not fit for purpose

New technology is not supported by the right processes and skills

36%

TOP 5 BARRIERS TO TECHNOLOGY DELIVERING EXPECTED BENEFITS

Procurement policies too restrictive

Efficio, The Human Factor, 2019

Lack of vendor support in implementing solutions

69%

26%

Internal company politics

40%

PERCENTAGE OF ORGANISATIONS ADOPTING DIGITAL INNOVATIONS WITHIN PROCUREMENT

13%

University of Mannheim, CPO Survey, 2019

15%

Machine learning

Chatbots

Prescriptive analytics

…which in turn is undermining the adoption of value-adding technologies within the procurement function

14%

Artificial intelligence

Predictive analytics

19%

Yet technology as a standalone doesn't add value - it requires end user input, insight and knowledge to be a truly effective asset. As procurement moves towards self-serve models, it is vital that emerging technologies make life as easy as possible for users - whether through in-built templates, pricing benchmarks or other features.

Technology is a tool that enables people to be more effective. Therefore it's crucial for procurement leaders to actively question the purpose of technology and who it is being created for. By ensuring technology provides users with the learnings, knowledge and insight they need, procurement can simplify the repetitive nature of sourcing and ensure innovation adds real business value.

of senior procurement professionals think that in the future businesses will be able to self-serve the majority of their procurements needs through a workflow set up by procurement and enabled by technology

Efficio The Human Factor, 2019

To find out more about the importance of talent in procurement's digital transformation, download Efficio's 'The Human Factor' research report now

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