According to Ivalua Research, 53% of procurement and supplier management processes are not yet digitized. Procurement wastes 22% of their time dealing with paper-based or manual processes, creating inefficiencies.
The study indicates that half of procurement leaders (50%) think that the rate of digitization within procurement is too slow, while 47% say existing procurement systems are not flexible enough to keep up with constant change and deal with market and economic uncertainty.
The lack of digitization limits the ability to make quick and informed decisions regarding suppliers. It prevents companies from dealing with rising inflation and spiraling costs and makes it nearly impossible to attract the best talent.
The study shows that 85% of organizations have implemented or plan to implement data analytics within the procurement and supplier management function, and 63% say they have already implemented or plan to implement AI or machine learning. Only 30% of respondents say they are “very confident” in the quality and accessibility of supplier data when it comes to supporting effective procurement.
The survey was conducted by Sapio research in July 2023 on behalf of Ivalua, based on a survey of 850 procurement leaders in the UK (250), US (250), Germany (100), France (100), Sweden (50), Netherlands (50) and Italy (50).