Digital procurement leaders are delivering greater business leadership, execution speed, ROI, UX and savings than their peers.
89% of companies require new leadership skills and 86% are seeking enhanced supplier digital capabilities.
Surveyed from over 170 global procurement leaders, ProcureTech’s research in association with Globality provides an insight into The Digital Future of Procurement Operating Models & Work.
This whitepaper uncovers key findings into companies’ current operating models and how digitalisation is playing an important part, which is set to become more prominent in the near future.
Many procurement leaders are reimagining their digital operating and service delivery models to reduce costs, increase business value and do more with less. Digital transformations and new ways of working will reshape procurement. Agility, decision making, transparency, risk and collaboration are key drivers of digitalisation with leaders focusing on risk and cost.
Dr Elouise Epstein, Partner at Kearney and digital futurist, reveals “now is the great time to be in procurement… [a] digital first approach allows us to redefine every piece about how we do procurement.” Organisations are deploying different approaches to improve digital ways of working, ranging from the technologies they implement through to shared services and skills development.
87% of procurement leaders said their companies are building digital, data and analytics teams (figure 1), and 81% creating shared service capability to shape their procurement function. There is a clear focus on the importance of suppliers both within operating models and skills development.
‘89% of companies see leadership digitalisation skills as being important.’
Findings show multiple skills (figure 2) are required over the next 3 years as organisations are investing more in the digital capabilities of their teams, upskilling talent and using AI and automation to digitalise analogue process to free up time for more strategic activities.
‘”Procurement has a critical, tangible impact on company performance, and adopting innovative digital technologies can help guide organisations through unprecedented levels of cost pressures, uncertainty and shortages of talent, and then build long-term agility and resilience into their operating models and processes”
Joel Hyatt, Co-Founder, CEO and Founder, Globality
Overall, procurement digitalisation appears to be very low, with an average of 10% of respondents having 81-100% of processes automated, revealing there is yet a way to go, and also a significant potential for digitalisation to improve procurement’s performance from speed and UX to savings and business leadership Creating a dynamic digital procurement strategy, roadmap and digital ecosystem is imperative for companies to level up their capabilities and team.