DIGITAL PROCUREMENT
“ In our benchmark database , we are seeing a significant gap between the median performer and the top quarter performer ”
NICOLAS WALDEN SENIOR DIRECTOR , THE HACKETT GROUP
Understanding the transformation gap in procurement “ In our benchmark database , we are seeing a significant gap between the median performer and the top quarter performer ,” says Nicolas Walden , Senior Director , Procurement Executive Advisory Membership Programmes , The Hackett Group . “ And it ’ s a significant gap , a two to three X difference whether you are talking about cost savings , ROI , number of suppliers , level of automation , or touchless orders . And that gap is growing year-onyear , and it ' s not one single industry that is outperforming over others It is specific leading organisations across all industries . They have taken a systematic and deliberate approach to invest in their procurement functions , they see the value potential in the future , so they are building in the best practices , they are developing capabilities , people , data and technology .”
Agreeing with Walden , Belotserkovskiy adds : “ in many organisations procurement is a cost centre , it is not a profit centre . So the investment in technology and procurement can be hard to justify . If you think about the journey of procurement technology there has been a wave of big ERP implementations in the last decade or so , but while these have some procurement features they are not going to fix procurement problems . Organisations have come to realise that they need a whole different layer of specific procurement tools on top of your ERP which many organisations are lagging behind in . So we have been seeing a lack of prioritisation
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