Digital Procurement

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.

Strategic Priorities for the Procurement Organization’s Digital Journey

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.

Innovations in Digital Procurement

The digital procurement journey can lead to meaningful results: a 5% to 10% cost savings and a 30% to 50% increase in efficiencies. In this video, BCG’s Daniel Weise discusses the three primary ways in which procurement organizations are pursuing—and benefiting from—innovations in digitization.

Digital Procurement and the Creation of Value

Digital creates value for procurement in three distinct but interrelated ways:

  • Insights and Informed Decisions. Big data and advanced analytics enhance insights, decision making—and performance.
  • Automated Processes. Robotic process automation speeds up transactional tasks while enhancing accuracy and contract compliance. Artificial intelligence can increase cognitive activities, improving speed and productivity.
  • Collaboration. Various digital technologies working together enable procurement work to take place in real time with other functions, business units, and regions within the organization—providing insights into demand and allowing for greater product development.

Featured Experts

protected by reCaptcha

Subscribe to our Procurement eAlert.