Digital Procurement Takes Flight
April 10 2018 - 8:30AM
Business Wire
New survey shows companies betting big on
technology to transform function; results to be shared at SAP Ariba
Live Amsterdam April 23-25
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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SAP AribaKaren Master, +1 412-297-8177karen.master@sap.com
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