According to a recent study conducted by SAP and market researcher Oxford Economics, manual procurement processes inhibit cost transparency in purchasing – consequences for the overall performance arise.
The recently published study reveals a large difference between the digital pioneers, i.e., the companies that already use digital technologies for process control and analysis, and the companies that still predominantly rely on manual processes.
According to the report, 49 percent of the 1,000 executives surveyed make their procurement decisions based on manually analyzed data. Although 54 percent of executives say they can make data-driven decisions with the technologies they currently use, 38 percent of respondents still manage most or all procurement processes manually.
According to the study, this unused potential leads to a significant loss of performance: Only 23 percent of respondents have a real-time overview of their total spendings.
The digital pioneers use data analysis, artificial intelligence (AI) and other technologies to manage their procurement processes – with great success. The study shows that they achieve better business results than their less digitized competitors. The study’s authors assume that the use of new technologies and digitized processes leads to a more agile and thus more resilient procurement environment – an important success factor, especially in challenging times and in a competitive environment.
For the “Agile Procurement Insights Research” study, the IT company and the market researcher surveyed a total of 1000 executives responsible for direct or indirect spending. After entering your contact details, you can view the study here free of charge.