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Spend management software supplier Ivalua and Forrester Consulting conduced a worldwide study.
A lack of technology adoption is holding procurement functions back from overcoming supply chain challenges, such as the COVID-19 pandemic, a survey has found.
Spend management software supplier Ivalua and Forrester Consulting conduced a worldwide study of procurement, supply chain, and finance business leaders which found that procurement teams were suffering from a lack of data integration.
Respondents to the survey said that this was due to challenges when utilising technology in procurement, with key reasons including: existing systems “not fit for purpose” (36%), poor data quality reducing trust in information (36%), and staff having inaccurate expectations of what technology can do (34%).
The study also found that ‘digitally advanced’ departments were exceeding those the survey classified as less digitally mature procurement departments.
97% of advanced procurement departments said that procurement strategy was well aligned with overall business strategy versus only 14% of those less digitally mature, while 51% of more digitally advanced procurement departments measured performance weekly or biweekly, versus only 26% of those that considered themselves to be less digitally mature.
Again, just 16% of less digitally mature organisations proactively monitored suppliers’ contracts for expiration and risk, versus 94% of more digitally advanced departments. Ivalua said this was a necessary task for helping organisations overcome supply chain challenges, including unforeseen events like COVID-19. Read more
Source: LOGISTICS MANAGER
