Transforming Procurement for a Digital-First Economy
Business is going through a profoundly transformational period that has been called both “The Digital Era” and “The Age of the Customer”. Global innovation driven by the growth of affordable networked storage, sensory, and processing power has made possible dramatically new ways of doing business. New capabilities are touching nearly every aspect of business, and older approaches are fast becoming uncompetitive and obsolete. In face of these changes, we believe that CPOs must rethink their strategies now and assume that nearly all roles in procurement will be affected by these trends within three-to-five years.
CPOs have traditionally used cost savings and cost avoidance as the primary KPIs for their organizations, in some instances adding tracking of compliance, satisfaction, speed and accuracy. While important, none of these operational measurements really address how effective procurement contributes to organizational transformation, either through revenue growth, or innovation and collaboration between the company and its suppliers or the value created as a result of provider innovation toward creating disruptive business models similar to the examples of Amazon, Uber and Airbnb.
To remain relevant in today’s business environment, CPOs must take on new roles and acquire new competencies that enable and support innovation and digital transformation. While the procurement profession has evolved significantly in terms of contributing to business success, much work remains to be done.
This Alsbridge research report, commissioned by GEP, a leading global provider of procurement services and procurement software, examines the state of the procurement profession and key success factors for operating in the digital era. The report includes results and analysis of surveys conducted of procurement and sourcing executives in a wide range of industry sectors, who shared their perspectives on current procurement capabilities and performance. An “Agenda for Transformation” outlines specific steps procurement professionals can take to succeed in today’s rapidly evolving marketplace.
To download this exclusive report, visit the GEP Knowledge Bank.