Digital Procurement Takes Flight
New survey shows companies betting big on technology to transform
function; results to be shared at SAP Ariba Live Amsterdam April 23-25
PALO ALTO, Calif.–(BUSINESS WIRE)–For the last 20 years, procurement has slowly been transforming from a
tactical, manual process to a strategic digital function. But things are
about to take off. According to the results of a new global survey
conducted by the University of Applied Sciences Würzburg-Schweinfurt
with support from SAP
Ariba, leading procurement organizations see digitization as the
future. And they are investing heavily in technologies that beyond
automating things and saving money, can help them drive business
innovation and make a difference in the world. The results of the
measure will be shared at SAP
Ariba Live, the premier global commerce conference that kicks off
April 23 at the RAI Amsterdam.
“The message is loud and clear,” said Prof. Dr. Karsten Machholz,
Strategic Procurement & SCM, the University of Applied Sciences
Würzburg-Schweinfurt, co-author of What’s the Next Big Thing in
Procurement. “Procurement executives around the world believe
digitization is more critical than ever. And they are taking steps to
accelerate it within their organizations and increase the value they
deliver.”
To understand their goals, Machholz joined forces with SAP Ariba to
survey more than 450 procurement and supply chain executives across
EMEA, North and South America and Asia Pacific. The study covered all
major industries and included blue chip enterprises and mid-market
companies alike and found that:
-
The journey is just beginning. While 83 percent of respondents
believe digitization will profoundly impact their business, only five
percent have highly automated processes in place. -
Procurement has a conscience. Savings are still their number
one priority. But 88 percent of procurement executives surveyed
have higher objectives – such as eliminating forced labor, conflict
minerals and poverty from their supply chains – and see the value in
helping their companies both do good and do well. -
Things will get smarter and faster. Robots won’t replace
buyers, but alongside artificial intelligence and machine learning,
they will make them more intelligent and efficient. And to this end,
more than 60 percent of respondents plan investments in robotic
process automation (20 percent), artificial intelligence/cognitive
computing (17 percent), machine learning (15 percent) and chat bots
(nine percent).
Digital transformation isn’t without its challenges. “Within many
organizations, insufficient analytics, poor data quality, budget
restrictions and lack of talent are creating roadblocks,” says What’s
the Next Big Thing in Procurement co-author and SAP Ariba Chief
Digital Officer Marcell Vollmer. Among the actions that can be taken to
remove them outlined in the study:
-
Don’t just automate, innovate. Use digital technologies to redesign
processes and make them work the way they should. -
Cleanse data and leverage intelligent technologies and predictive
analytics to make smarter decisions. -
Look beyond savings to measure success. Find a purpose – and execute
it. -
Recognize that companies are only as good as the people they keep.
Develop a talent management strategy to advance roles, skills and
knowledge.
“Over the next 10 years, companies will see more opportunity than they
have in the past two decades combined,” Vollmer said. “In embracing
digital technologies and strategies, procurement can take the lead in
maximizing these opportunities and beyond delivering cost savings and
process efficiencies, fuel innovation and market advantage.”
Thousands will gather to explore what lies ahead and imagine business
the way it should work at SAP
Ariba Live, the largest gathering of procurement and supply chain
professionals in Europe. From dynamic general sessions and interactive
breakouts to industry and role-specific networking opportunities and an
exclusive Diversity and Leadership forum, there’s something for everyone
at SAP Ariba Live. Registration for the can’t-miss event is open today.
Click here
to reserve your place.
About SAP Ariba
SAP Ariba is how companies connect to get business done. On the Ariba
Network, buyers and suppliers from more than 3.3 million companies and
190 countries discover new opportunities, collaborate on transactions
and grow their relationships. Buyers can manage the entire purchasing
process, while controlling spending, finding new sources of savings and
building a healthy supply chain. And suppliers can connect with
profitable customers and efficiently scale existing relationships –
simplifying sales cycles and improving cash control along the way. The
result is a dynamic, digital marketplace, where over $1.6 trillion in
commerce gets done every year.
To learn more about SAP Ariba, visit www.ariba.com
About SAP
As market leader in enterprise application software, SAP (NYSE: SAP)
helps companies of all sizes and industries run better. From back office
to boardroom, warehouse to storefront, desktop to mobile device – SAP
empowers people and organizations to work together more efficiently and
use business insight more effectively to stay ahead of the competition.
SAP applications and services enable approximately 378,000 customers to
operate profitably, adapt continuously, and grow sustainably. For more
information, visit www.sap.com.
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