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Digital Procurement Reports 2018-9


We read a lot of digital and IT procurement reports, white papers etc. It’s important to keep up with the trends in IT purchasing. To save you some time here are some of the key take outs from 3 important 2018/9 reports based on surveys related to digital procurement. 

It’s with some comfort that at Markit we are making great progress, and more often or not far ahead of the curve, in helping our clients succeed in addressing some of the fundamental issues and opportunities exposed in these reports.  

Perhaps that’s why 20+% of the Forbes Global 2000 use Markit as their IT purchasing solution internationally and we are growing so fast?  

EMEA Digital Procurement Survey 2019 by PWC
200 responses from survey participants with various leadership roles in procurement departments from 20 European countries. 

1. Digitalisation is a strategic priority for procurement departments across Europe. Regardless of the country, sector or business size, procurement departments’ number two priority is to digitise their processes, with streamlining their organisation only just taking first place. Talent management and developing supplier collaboration rank next in importance. 

2. Digitalisation is well on track, with an average 2.5 out of 7 procurement processes having already switched to digital, compared to 1.5 in 2017. 

3. Another striking difference compared to 2017: the digital leap forward in “strategic” processes – a trend that will gain in momentum.  
*60% of companies have started digitising strategic procurement processes – strategic sourcing, predictive analytics and supplier collaboration tools – compared to 21% in 2017 
*For transactional aspects – Source-to-Pay, contract preparation and spend trackers – nearly 75% of companies are currently adopting digital solutions. In line with the 2017 findings, these processes take priority. 

4. 78% of companies, regardless of their sector or country, stated their intention to invest in at least three digital solutions. Germany has a clear leading position in procurement digitalisation compared to its European counterparts. For the degree of process digitisation, Germany’s procurement departments have above average or even leading maturity in 6 out of 7 processes surveyed. (More details in the report).  

Source: EMEA Digital Procurement Survey 2019 by PWC

Procurement, Finance and Supply Chain Survey Results 2019 by SAP Ariba/University of Mannheim
Survey of 3000 executives in procurement functions with 466 responses from across the globe. 

1. 82% of participants believe Digital Transformation will affect procurement more in 2019 than in 2018  

2. 28% of participants rated their digital maturity as better or much better than their competitor 

3. 83.9% consider digitalization important to improve procurement performance  

4. More than 80% of participants are generally not risk averse and highly entrepreneurial 

5. Goals for digitalization include automating processes, improving data quality, achieving cost savings and improving compliance 

6. The adoption of mature technologies is moderate. Only 65% of respondents are leveraging cloud solutions 

7. Budget restrictions, analytics/data insights and talent shortage are the largest roadblocks for procurement function performance. 

Source: Procurement, Finance and Supply Chain Survey Results 2019 by SAP Ariba/University of Mannheim

Dun & Bradstreet 2018 Compliance and Procurement Sentiment Report
The first-ever Dun & Bradstreet 2018 Compliance and Procurement Sentiment Report gathered responses from more than 600 respondents from the US and UK answered a range of questions on confidence, concerns, risk, technology and priorities. 

For compliance and procurement professionals across the globe, their objectives remain unchanged: mitigate risk, reduce costs, and create world-class, advanced due-diligence programs. These areas of focus are not mutually exclusive and cannot be done in silos. There are external and internal factors, often outside the compliance and procurement professional’s scope of responsibility, that impact success.  

1. Procurement and compliance professionals are optimistic about the future of their disciplines today.  

2. There is an overall positive sentiment in both the current and future effectiveness of their respective areas as a function. 

3. While the overall sentiment is positive, respondents continue to be concerned with regulations. As the regulatory landscape in the US and UK becomes more complex, compliance and procurement organizations need to have comprehensive due diligence programs in place. They also need to be nimble enough to respond to change quickly, while meeting regulatory requirements.  

4. The convergence between supply risk management and compliance continues. Both disciplines have similar, overlapping needs, and in some companies, we are seeing one executive responsible for both. In those cases, professionals who hold dual roles tend to have better business outcomes and are more successful. 

5. Many organizations have adopted technology as part of their compliance and procurement programs, but there is still room for improvement. As technology changes and solutions like artificial intelligence and predictive analytics come into play, an organization’s due-diligence program can benefit if the technology is adopted correctly. However, technology was highlighted by numerous respondents as a possible barrier to their success.  

Source: Dun & Bradstreet 2018 Compliance and Procurement Sentiment Report