Four in five companies "missing the boat" when it comes to digital procurement
The research, condu...
A new report has found that more than four in five (83%) companies are “missing the boat” when it comes to digital procurement.
The research, conducted by source-to-pay provider Jaggaer, uncovered a worrying lack of progress when it comes to private businesses preparing and implementing strategies for digital procurement.
Some 83% of companies were found not to be 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 recognised 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, 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 minimise their own risk.
Overall, companies recognised that digitalisation 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 organisation.
“New technology is going to completely revolutionise the daily routine in procurement,” said Robert Bonavito, CEO of Jaggaer.
“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.”
Vizibl: The Future of Supplier Relationship Management (SRM)
Even the best procurement team on the planet can only derive so much value from their suppliers by tinkering with spreadsheets or negotiating another half-percent-per-unit from a regular bulk-buy.
The value of relationships count in today’s fast-paced and disrupted business environment, where partnerships, future efficiencies and risk mitigation are just as vital a measure of an organisation’s maturing procurement organisation as overhead reduction.
A recent McKinsey survey into 100 large organisations found that the more cooperative an organisation, the more financially competitive it could become. "Companies with advanced supplier-collaboration capabilities tend to outperform their peers,” it found, but also admitted that this value is not a simple thing to access.
Visibl is a company built from the ground up with the philosophy of ‘delivering mutual value' in mind. Its digital procurement platform is designed to place collaboration at the centre of supplier relationships. Greater transparency for all stakeholders not only simplifies and quantifies contractual obligations, but also provides opportunities to discover and align on common goals and business objectives.
How does Vizibl’s platform work?
Vizibl’s supplier relationship management platform feeds off data. By leveraging data from existing enterprise applications such as ERP, P2P, risk management, or project management systems, all stakeholders can share a central source of truth. The result is greater transparency, visibility and accountability on both sides of a contract. The platform is divided into several focus areas:
- Vizibl Relationships: This system helps organisations move beyond transactional interactions with their suppliers, instead building trust and applying a governance framework that is both scalable and consistent to better support core business objectives.
- Vizibl Workspace: Operating in one virtual workspace removes friction in collaborative endeavours and aligned initiatives. Vizibl Workspace enables partners to drive goals together, whether improved cost-savings, ESG commitments, new product launches or boosting operational efficiency.
- Vizibl Reporting: Measuring results is critical in achieving business objectives, forward planning and risk management. This system helps business leaders leverage actionable data to quantify and drive initiatives, support and mange supplier performance, and understand true ROI.
Key Vizibl customers: Heineken, Vodafone, Astellas
“Gartner lists supplier collaboration as supply chain leaders’ number one focus to solve for agility and resilience”
Speaking to SupplyChainDigital.com earlier this year in June, Mark Perera, CEO and co-founder of Vizibl said: “We work with companies across multiple industries, but regardless of sector, we really see agility and resilience as overarching topic areas in the supply chain. From a resilience perspective, that’s both in terms of operational resilience, but also strategic resilience; we see organisations looking at implementing the desired levels of flexibility and the ability to change with demand, as they look towards the future of their company.”
“Gartner lists supplier collaboration as supply chain leaders’ number one focus to solve for agility and resilience,” he added. “The mindset and process change to switch to a supplier collaboration model will be a challenge for organisations that are falling behind.”