Hackett Group Research Points to Significant Talent and Strategy Gaps in Procurement
There’s a gap between procurement’s “transformation agenda” and enterprise-level digital transformation priorities, and the risk that this divide may widen
Latest NewsProcurement is getting its digitized act together Third Party Risk: Too Close for Comfort Pacific Basin conflict and its impact on high tech manufacturing The New York Shipping Exchange steps up its game to serve “digitized” logistics What Maersk Really Means About Global Integration More News
Latest ResourceThird Party Risk: Too Close for Comfort You’ve got a handle on many of the potential supply chain "disrupters" that can paralyze your business. But the real risk is embedded in areas you may have overlooked.
While supply chain managers and procurement leaders are well aware of the potentially dramatic impact of digital transformation on their operations, new research from The Hackett Group, Inc. reveals that few feel they have the necessary strategy, talent and competencies in place to seize an advantage.
Consequently, there’s a gap between procurement’s “transformation agenda” and enterprise-level digital transformation priorities, and the risk that this divide may widen, say researchers.
“The gap between awareness and capabilities in digital transformation is not unique to procurement. We’ve seen similar results in finance, HR, and even IT,” says The Hackett Group Principal and Global Procurement Advisory Practice Leader Chris Sawchuk. “Yet it is disconcerting to see that many procurement organizations are simply moving ahead in this critical development area without a comprehensive plan or the requisite talent. This is simply not a recipe for success.
The Hackett Group’s research identified four key areas procurement can focus in to enable digital transformation: improving the stakeholder experience; orchestrating a procurement-as-a-service portfolio; setting a foundation of analytics-driven insight; and leveraging technology to accelerate transformation.
A complimentary version of the research is available for download, following registration, at this link: http://www.thehackettgroup.com/research/2017/social-media/key17pr/
The Hackett Group’s research showed that nearly 85 percent of all procurement organizations believe that digital transformation will fundamentally change the way they deliver services over the next three to five years. The use of cloud-based applications, advanced analytics, robotic process automation (RPA), mobile computing and big data are also expected to grow dramatically, the study found.
Yet only 32 percent of procurement organizations currently have a formal digital strategy and only 25 percent have the needed resources and competencies in place today.
“Procurement has been focused on agility for several years now, and today, digital transformation is clearly a strong way to enable that, while at the same time improving efficiency and effectiveness,” says Sawchuk. “But procurement leaders need to make sure they are aware of the technology that’s out there, understand which ones they want to focus on first, and build a foundation on which they can move forward.”
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
Subscribe to Supply Chain Management Review Magazine!Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
Get Smart (about replenishment) The Benefits of Blockchain: Fact or Wishful Thinking? View More From this Issue