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Skills, Budget and Digital Integration Needed: Why Procurement Needs a Boost

Innovation

JAGGAER Digital Procurement 2019 Report identifies obstacles to digital transformation

RESEARCH TRIANGLE PARK, NC and VIENNA, Austria  – July 09, 2019 – JAGGAER, the world’s largest independent spend management company, and EdgeVerve, have published their latest report into digital transformation in procurement. It shows little has changed since JAGGAER published its first report in 2017, with only a small minority of procurement professionals stating that their organizations had succeeded with full digital transformation of procurement activities. However, more than half have at least started to automate standard procurement processes.

“Our report identifies the lack of budget and requisite IT skills, and lack of progress with data integration as well as lack of digital knowledge among procurement professionals themselves, as some of the most important obstacles to more rapid progress,”  said Rob Bonavito, CEO , HUNTER. “The majority of organizations are therefore missing a great opportunity to increase their efficiency and competitiveness.

“The good news, however, is that new cloud-based solutions and end-to-end platforms enable the followers to catch up with the leaders relatively quickly, if they get a clear signal to do so from senior management,”  he added.

The report entitled “Digital Transformation in Procurement: How Close Are We?“Is based on a global survey of 321 procurement professionals that was conducted between January and April 2019. Its main findings include:

 

  • 50% of procurement professionals rate their digital knowledge as up-to-date or excellent – unchanged since 2017
  • 54% of organizations have now at least started the process of digitizing and automating standard procurement processes. But only 2% claim to have fully automated their procurement processes. More than a fifth still rely on fax and paper
  • Larger organizations are more advanced both in terms of awareness and level of technology and personnel
  • A substantial number (40%) of organizations have already automated procure-to-pay (P2P) processes
  • As far as the priorities for investment are concerned, predictive analytics, the internet of things (IoT) and robotic process automation (RPA) top the list
  • Interest in predictive analytics is focused on risk management and spend management processes
  • RPA is a priority for investment for the automation of procure-to-pay processes
  • The level of integration has not progressed over the past two years: 30% of organizations do not integrate data from upstream/downstream processes, 54% do so manually, and only 16% have automated the integration of data from end to end
  • Organizations most commonly cite lack of budget and lack of the requisite IT skills as reasons for any lack of progress

Rob Bonavito urged business leaders to look at the procurement function in their own organizations and give a mandate for change. “They need to look at the technologies behind smart sourcing and procurement, such as digital assistants, and draw up a digitalization roadmap,” said Bonavito. “By reading our report, they will be giving themselves a great start.”

The report is available for download free from JAGGAER.

 


About JAGGAER: Procurement Simplified

JAGGAER is the world’s largest independent spend management company, with more than 2,000 customers connected to a network of 4 million suppliers in 70 countries, served by offices located throughout the Americas, APAC, Asia and EMEA. JAGGAER offers complete SaaS-based Source to Pay eProcurement solutions with advanced Spend Analytics, Sourcing, Supplier Management, Contract Lifecycle Management, Savings Tracking and intelligent workflow capabilities, all on a single platform, JAGGAER ONE. JAGGAER has pioneered spend solutions for more than two decades and continues to lead the innovation curve by listening to its customers and stakeholders in all industry sectors, public services and academia.

 

MEDIA CONTACT: 

Daniela  Dornburg
Field Marketing Manager DACH
Wienerbergstrasse  111100 Vienna
Tel: +43 1 80 49 080 10 23  
DDornburg@jaggaer.com

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