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LATEST THINKING


Is yours a procurement organization of one?

Digital technologies will transform the way procurement organizations do business.

Overview

After decades of relative inertia, procurement organizations are poised for radical change. Indeed, within the next five to seven years, we expect digital platforms and technologies to totally transform the way most procurement organizations do business.

Not only will they be operating at radically lower cost, they will also be driving more strategic value for the enterprises they serve.

And all because they will have leveraged digital to become what are, in effect, procurement organizations of one:

  • “One” with the business as an embedded, strategic team

  • “One” with an expanded ecosystem of suppliers

  • “One” with re-imagined processes as digital evolves

Download PDFView the Infographic [PDF, 926KB]

Key Findings

Leading players are already envisioning a new breed of procurement, a vision distinguished by three key characteristics:

  • Small organizations that pack a big punch. Leaders foresee a more prominent strategic role for the CPO, and a dramatically different organizational structure —a structure enabled by digital to make procurement “one” with the business.

  • An extended ecosystem. Leaders plan to leverage digital technologies to extend their supply networks into an “ecosystem of 3”: strategic, transactional and uncharted (new, or not yet known).

  • A process revolution. Leaders expect digital technologies to allow them to re-evaluate and re-imagine the entire procurement process, even down to the most fundamental of procurement processes.

Recommendations

It’s time to let digital platforms and technologies help you see the art of the possible in procurement. By leveraging them, you can drive a new vision and strategy. But where do you begin?

  • Consider how radically digital will change the lay out of your procurement organization.

  • Identify the digital components that will enable the virtually integrated enterprise.

  • Challenge the status quo by reconstructing your source-to-pay process with digital in mind.