Lack of Urgency. Budget
50% of senior procurement executives surveyed found that the greatest roadblock to their digital transformation efforts came in the form of integrating new technologies within their legacy IT frameworks.
3rd Annual WBR Insights CPO Study.
According to a recent study by Worldwide Business Research, other significant challenges faced by senior procurement executives included the lack of urgency of the part of senior management to implement new technologies, as well as the necessary budget to move forward with these initiatives.
Produced by WBR Insights, in cooperation with Amazon Business, Beeline, Capriza, and GEP, this year’s report, “Examining the Role of the CPO as a Catalyst For Digital Transformation in a Time of Disruption,” explores the challenges that procurement leadership face in advancing digital transformation from both internal and external.
Other key findings from the report include:
Blockchainis the cutting-edge technology that most procurement executives are currently intrigued by and are actively investigating (46%), followed by Robotic Process Automation (RPA; 25%) and AI/Machine Learning (18%) respectively.
- 89% of the executives surveyed plan to have at least 50% percent of their procurement processes automated in the next 12 months.
- Contingent labor and managed services will continue to be a large part of procurement executive’s tactical strategy, with over 33% planning to increase the amount of contingent labor they utilize within the next 12 months (37% plan to maintain their current level)
. Strategicsourcing and category management are the two greatest priorities in regards to managed services (82% respectively), followed closely by supply risk management (75%).
“Many CPOs have completed the first steps towards digital transformation in the form of integrating traditional procurement IT solutions (Source to Contract, Procure to Pay, etc.), and are just beginning to explore the potential of cutting-edge technologies like AI and Blockchain,” said Andrew Greissman, Digital Content Director, WBR Insights. “As procurement begins to take on a greater role in risk management within the organization, they will need to balance the desire to be ‘first to market’ based on market projections for these solutions and the need for clear, demonstrable success metrics.”
The full report is currently available for download. For more information, visit WBR Insights.