A new report has found that more than four in five companies are “missing the boat” when it comes to digital procurement.
The research, conducted by source-to-pay provider Jaggaer, uncovered a lack of progress when it comes to private businesses preparing and implementing strategies for digital procurement.
It was found that 83% of companies were not taking full advantage of digital procurement’s potential and remain wary of using the newest cutting-edge technologies, such as blockchain, Robotic Process Automation (RPA) and digital assistants/chatbots.
The study also recognized that investing in digital procurement is a priority. The majority of the survey responses listed future-oriented KPIs and big data analytics as top investment priorities, while new or less mature technology such as blockchain (36%), RPA (48%) and digital assistants/chatbots (52%) were listed as lower priority areas.
Jaggaer said the results show that companies are taking a pragmatic approach to implementing new technology and are waiting to see how “first movers” fare in order to minimize their own risk.
Overall, companies recognized that digitalization in procurement has the potential to improve performance.
Respondents listed SRM, eProcurement, and eSourcing software solutions as having the greatest potential for increasing efficiency. Big data analysis (53%), SRM, eProcurement and eSourcing (46%), and future-oriented KPI analyses (40%) were all listed as having the greatest potential for increasing effectiveness in procurement and increasing the value that procurement adds to the entire organization.
Robert Bonavito, CEO of Jaggaer, said “new technology is going to completely revolutionize the daily routine in procurement. By implementing modern procurement software, more than half of all procurement organisations have already taken the first big step towards digital end-to-end processes, automation, data consolidation, and using KPIs for strategic decisions. The results of the survey show that many companies are already better-equipped for digitalization than they may realise. The next step is to link data more effectively and use it more intelligently. This will open up many new opportunities for procurement that will give organizations a strategic advantage.”
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