Electronic tools have become stalwarts of modern society, to the point where many are even considered ubiquitous. As a result, it may seem as though digital transformation is old news, and that most (if not all) organizations are already fully digital.
According to a recent report by The Hackett Group, however, the situation in procurement is very different: “84% of procurement organizations believe that digital transformation will fundamentally change the way their services are delivered over the next three to five years. Yet only 32% have developed a strategy for getting there.”
In Hackett’s latest study, they’ve found that world-class procurement organizations have a quantifiable performance advantage, which includes having 22% lower labor costs and 29% fewer full-time equivalents (FTEs) than more typical organizations. In addition, organizations can continue to reduce costs by implementing digital technology.
In the coming years, a digital revolution is set to take place, and the procurement world can expect substantial changes as a result. During this wave of technological change, there are several concepts that procurement professionals should familiarize themselves with to ensure they remain at the forefront of procurement processes. These changes also represent an opportunity for procurement to adopt a new operating model that is the key to its future.
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