According to a new study, conducted by Jaggaer in collaboration with the Austrian Association for Supply Chain Management, Procurement and Logistics, 83% of companies are failing to take full advantage of the potential of digital procurement.
The study surveyed a total of 168 companies of all different sizes across a variety of industries, evaluating their current digital procurement strategies.
“New technology is going to completely revolutionize the daily routine in procurement,” said Thomas Dieringer, Managing Director of Jaggaer EMEA. “By implementing modern procurement software, more than half of all procurement organizations have already taken the first big step towards digital end-to-end processes, automation, data consolidation, and using KPIs for strategic decisions.”
However, whilst the majority of firms see investment in digital procurement as a top priority, this was not reflected by the study in new and emerging technologies, suggesting that companies are taking a more pragmatic, risk-free approach to digital procurement.
The likes of blockchain, robotic process automation (RPA) and digital assistants were all seen as being low priority investments, despite many recognising digital procurement to be a key driver in improving performance.
“The next step is to link data more effectively and use it more intelligently,” Dieringer continued. “This will open up many new opportunities for procurement that will give organizations a strategic advantage.”