Despite the highs and lows of 2021, demand continued to grow for digital procurement.
There were some big 2021 moments that mattered, ranging from significant funding rounds, to acquisitions and partnerships, all amplified by quotes and statistics that defined 2021.
2021 Defining Quotes
Digitisation has led to the exponential growth of data, which will empower strategic decision-making when harnessed correctly.
By allowing digital technologies to simplify some of the more time- consuming, lower value tasks (like sifting through loads of raw data), procurement teams will be better placed to execute higher quality transactions with greater consistency than ever before
Organizations that have invested heavily in digital systems but still rely on paper transactions are left with end-to-end processes that are totally disjointed. Your best bet for fast relief is to go fully digital. As a result, delays, risks, and costs will be significantly reduced while the user experience will be greatly enhanced.
As more procurement departments integrate more technologies to streamline business operations, gaining rapid visibility into new risks that can impact the interconnected IT ecosystem can reduce the likelihood of a data security event while protecting corporate, customer, and vendor data.
Regarding supply chains, governing practices need to be updated and digitised to cope with this as it is unlikely to return to what it was previously, meaning new ways of working will need to be adopted.
Over the next five to ten years digital transformation is going to be a necessity to stay competitive, and autonomous procurement is what that future looks like.
The path forward in procurement highlights the use of automation, supporting the direction of a ‘digital transformation’. In the future and on a global basis invoices will be connected to the payment process.
Supplier relationships within Procurement are essential, including communication, honesty and trust. These are the foundations of a strong supplier relationship which help to build high-performing strategic supply partnerships.
If CPOs are going to drive transformative, sustainable change, they need to think holistically and consider three elements together and separately: process, people and technology.
2021 Defining Statistics
The global procurement software (digital) market is expected to grow at a compound annual growth rate of 10.2% by 2025
46% of Procurement Leaders believed that lack of data integration between business systems is the biggest barrier to adopt and apply digital technology within their procurement organizations.
Don’t think that AI can guarantee 100% accuracy.
No technology can guarantee perfection. It can get close, but nothing will ever be 100%. That’s why having human input combined with AI is the future.
63% of respondents reported that their sustainable procurement initiatives have helped them build the supply chain resilience needed to endure the COVID-19 pandemic
84% of survey respondents believe that they lack a truly effective Information Technology Asset Management (ITAM) initiative in their organization
Organizations have had mixed success in process automation – Nearly 4 in 10 (37%) executives say that most or all of their procurement processes are manual.
Leading procurement organizations deliver 60% higher returns on assets invested in procurement, with significant benefits to the bottom line and reduced supply chain risks.