Keeping Up with the Latest Procurement Tech Trends
It’s January, a great time to start making positive changes, so what are some of the areas in you procurement department you plan to tweak or refresh to help your team take a major step forward in 2017. The best place to start is to look at the best practices of your colleagues and the trends that are taking place with procurement technology. That’s why JAGGAER has released findings from a recent Tech Trends survey.
The 2017 Global Procurement Tech Trends Survey
We polled more than 1,000 procurement professionals from our global customer network, which includes manufacturing, consumer packaged goods, higher education and transportation companies with an annual spend of between $150 million to $2 billion dollars. Responses were received from nearly 500 companies, and were split between those actively using procurement solutions and those making solution purchasing decisions.
Specific findings from the survey include:
The Role of Procurement is Evolving in Multiple Critical Ways.
- 25% strongly feel that procurement is considered a profit center within their companies.
- 72% said they are actively planning or currently using use spend analytics to access data and supplier visibility to drive business decisions.
- 67% of procurement professionals stated they expect that executive interest will increase over the next 12 months, as procurement is encouraged to deliver cost savings and value to their organizations.
- 60% of responders believe the role of procurement is evolving to facilitate collaboration across business units.
- 56% feel that are trusted advisors.
Procurement is Being Tasked with New Areas of Responsibility.
As procurement becomes more visible in a company, its reach is expanding to other areas. It’s no longer buttonholed into helping users purchase office supplies and other indirect materials; procurement is now being asked to source and purchase training services, IT/telecom, direct materials, financial Services, as well as reagents/chemicals.
- 52% feel that they are tasked with driving the company’s risk tolerance.
- 37% of respondents stated that they will be involved with financial services decisions.
- 29% feel that they will gain additional responsibility with legal services.
Efficiency, Business Intelligence and Compliance Are the Top 3 Challenges for 2017
- 41% of respondents feel that greater process efficiency is their biggest challenge of the year.
- 25% state that business intelligence and analytics are their biggest challenges.
- 20% are concerned with improved supplier management and compliance.
“Today, procurement departments have to look beyond individual metrics to drive success,” said Edwin Carter, Director of Procurement, Analytics at the Coca-Cola Company. “Procurement managers are consistently challenged at the highest levels to extend that success to the greater organization in order to achieve wider strategic initiatives through a data-driven, process-oriented approach”
In the rapid pace of technology, trends come and go. Some trends have a broader, lasting impact, and part your role as a procurement pro is to keep a close eye on what’s happening in the world of procurement, and be ready to shirt to new and better ways of doing things.