By fully embracing digital transformation, procurement organizations can achieve superior levels of efficiency, effectiveness and customer experience, including 25% lower cost, 2.5 times greater procurement ROI, and more, according to research from The Hackett Group, Inc.
“For decades The Hackett Group’s benchmarks have been the gold standard by which most global companies measure world-class performance in procurement and other business services. Now, with the growing impact of digital transformation, The Hackett Group is raising the bar further with its shift to a Digital World Class measurement standard. Our new research details how highly technology-enabled organizations are achieving new levels of peak performance,” says The Hackett Group VP, research, Erik Dorr.
“The results are impressive. But, the bottom line is straightforward. Our research provides empirical evidence of the impact that digital transformation is having,” says Dorr. “For years, companies have been making incremental improvements, optimizing processes, cutting costs and reducing transactional labor to reach world-class performance. But, new technologies allow many companies to fast-forward to Digital World Class levels of operational excellence and business value. And they can get much of this benefit by overlaying digital technology on their existing systems, rather than embarking on large-scale infrastructure changes.”
From Finance! Yahoo:
- Digital world-class procurement organizations now operate at 25% lower cost than typical procurement organizations (i.e., peers) and 6% lower cost than traditional world-class procurement organizations, despite having greater spend on technology.
- Technology plays a key role in achieving these results, with digital world-class procurement organizations spending 20% more on technology than peers.
- Digital world-class organizations 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.