Despite digital’s promise, most companies’ procurement functions still live in the analog past and are missing out on digital’s key benefits. To implement an effective digital procurement strategy and take full advantage of the opportunities that digital offers, procurement leaders must start by defining the core value that their function brings to the organization.
Chief procurement officers can prioritize their digital focus and drive change where their organization needs it most. They can use digital to increase savings and unlock innovation with better connected suppliers. They can use robots for every stage of the transaction process, greatly reducing cycle times. Most important, data analytics can support all procurement activities by storing and analyzing data for improved decision making. And digital applications can be easily and efficiently connected to the existing system landscape.
Digital creates value for procurement in three distinct but interrelated ways:
At the foundation of every successful future procurement strategy lies the smart application of digital analytics, deeply embedded within the existing system landscape. Chief procurement officers must follow four simple steps to unleash the full value potential of digital.Learn more about digital analytics in procurement
With the importance of innovation rising to the top of the chief procurement officer’s agenda, leaders must establish a procurement innovation strategy—defining the type of innovation needed for different products.Learn more about digital innovation in procurement