Here is why World-Class Procurement Organizations Embrace Digital Transformation

At the core of stakes, we have: greater efficiency, effectiveness and higher ROI, agility, lower operating costs, and process optimization, to name a few.

In effect, from a real interest to standardize, simplify, and streamline their operations, I can observe that, world-class procurement organizations are focusing now, much more broadly on digital business opportunities to maintain their performance advantage.

World-class procurement organizations now have 18 percent lower operating costs than typical companies, and operate with 28 percent fewer staff, while generating more than twice the return on investment, according to new benchmark research from The Hackett Group, Inc. 

‘’They understand that cloud, mobile, and other digital business tools can allow them to truly transform the way procurement functions, including forecast and plan more accurately, collaborate with suppliers more effectively, and improve the experience for their customers,” said the Hackett Group Principal and Global Procurement Advisory Practice Leader Chris Sawchuk.

I can also recall that, the Hackett Group’s research revealed a total of five strategies used by current world-class procurement organizations to achieve superior results: embrace digital transformation; reallocate resources from transactional focus to value adding; leverage analytics-based decision making; adopt stakeholder/customer-centric service design and delivery; and re-skill the procurement function.