Procurement magazine October 2025 | Page 114

PROCUREMENT TECHNOLOGY
These areas require dedicated internal resources and cannot be effectively outsourced to system integrators.
Measuring success in procurement automation requires a phased approach to key performance indicators. Jessica recommends focusing initially on adoption metrics:“ I suggest in the first three to six months to focus on adoption metrics. We’ ll ask: how many transactions are happening in the system versus outside of the system? How many suppliers are enabled that are using the system and following the workflow as it should be?”
Only after establishing strong adoption patterns should organisations shift focus to operational performance indicators such as cycle time, cost per purchase order, cost per invoice and the number of no-touch transactions.
The procurement professional of tomorrow The future of procurement technology lies not in choosing between custom and off-the-shelf solutions, but in finding the right balance. Tricia says:“ A good mix is around 80 % off-the-shelf and around 20 % custom. This balance ensures companies can scale value quickly while keeping technology costs and maintenance manageable in the long run.”
This pragmatic approach recognises that while standardised automation delivers proven efficiencies, custom solutions may be necessary to address unique industry requirements or organisational processes.
Measuring Success in Phases
Successful procurement automation requires a phased approach to KPIs. Focus on adoption metrics for the first 3-6 months: transaction volumes within the system, supplier enablement rates and workflow compliance. Only after establishing strong adoption should organisations shift to operational performance indicators like cycle time, cost per PO and no-touch transaction rates.
The transformation of procurement roles through automation represents more than technological change, signifying a fundamental evolution in how organisations view and utilise their procurement capabilities.
As Giulio concludes, this evolution positions procurement teams to“ focus on value creation, crossfunctional collaboration and broader business goals – without changing the core skill sets required to manage payments effectively.”
The procurement professionals of tomorrow will be strategic advisors, relationship builders and data analysts rolled into one.
They will leverage automated systems to handle routine transactions while focusing their human intelligence on complex negotiations, risk assessment and strategic supplier partnerships.
114 October 2025