In 2021, digital world-class procurement organizations are operating at 25% lower cost than typical procurement organizations and 6% lower cost than traditional world-class procurement organizations, according to new research from the Hackett Group.
In fact, digital world-class procurement organizations are 85% more likely to be viewed by stakeholders as taking a proactive approach to supply risk mitigation.
From The Hackett Group:
- Digital world-class procurement organizations are able to deliver greater business value in the form of higher-quality services. Compared to peers, they have 2.5 times higher procurement ROI and 25% more spend influenced or managed by procurement.
- They are 85% more likely to be viewed by stakeholders as taking a proactive approach to supply risk mitigation and 19% more likely to be considered a valued business partner.
- To fully unlock the potential of technology, leading procurement organizations must transform in data and analytics; technology architecture (more cloud-based and modern); operating model; end-to-end process design and ownership; and talent.