We’ve read through some of the best analyst reports and surveys to bring you this procurement fact file containing some of the most interesting findings, statistics and quotes.

Procurement Fact File Claritum
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Procurement

Indirect Spend represents on average 22% of a company’s revenues.

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source: Accenture, High Performance Procurement

TOP 3 PRIORITIES FOR CPO’S

In Deloitte’s Global CPO Survey 2018 the top 3 priorities for CPO’s were found to be cost reduction, new product/market development and managing risk.

  • Cost Reduction 78%
  • New Product/Market Development 58%
  • Managing Risk 54%
  • Consolidating spend 37%
  • Reducing Total Lifecycle / Ownership costs 32%
  • Increasing competition 31%
  • Specification improvement 24%
  • Increasing level of supplier collaboration 23%
  • Business Partnering 22%
  • Restructuring existing relationships 21%
  • Restructuring the supply base 19%
  • Reducing transactions costs 16%
  • Reducing demand 13%
  • Managing commodity price volatility 11%
  • Outsourcing of non-core procurement activities 10%

Technology areas with most impact on the business in the next two years

  • Analytics 54%
  • Renewal of strategic procurement tools 43%
  • Renewal of e-procurement tools 43%
  • ERP platform renewal 33%
  • Digital (mobile, social media, web) 26%
  • Cloud computing 25%
  • Robotics process automation 24%
  • Cybersecurity/data privacy 18%
  • Emerging technologies 14%
Procurement Fact File Claritum
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HOW MAJORITY OF POs ARE SENT TO SUPPLIERS

71% Email
13% Phone
13% Online
4% Paper

TOP BARRIERS TO E-PROCUREMENT AUTOMATION

34% Current Processes Work
16% No Executive Sponsorship
15.5% Lack of understanding of current solutions
15% Lack of budget
11% Do not expect ROI for automation
8%  Business process re-engineering too difficult

Procurement Fact File Claritum
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  • Cost control and supplier negotiations 21%
  • Spend Visibility 19%
  • Ease of requisition an approval process 14%
  • Data accuracy 12%
  • Integration of AP within procurement process 12%
  • Off contract spend reduction 10%
  • Contract compliance 8%

Top opportunities for improvement in procurement process

B2B business is now dwarfing B2C with £7.7 trillion ecommerce sails versus only $2.3 trillion for B2C

Global e-commerce statistics, Shopify

Maverick Spend

MAVERICK SPEND THE BIGGEST CHALLENGE RELATING TO INDIRECT PROCUREMENT

71 per cent of our respondents regarded maverick spend by non-procurement professionals as the biggest challenge relating to indirect procurement.

%

Said Maverick Spend the Biggest Challenge

%

Think training employees could reduce maverick spend

Digitization of Procurement

Most valuable e-procurement supplier network services

  • Order management 21%
  • Supplier self assessment portal 17%
  • Contract management 13%
  • Catalog management 12%
  • Payment management 12%
  • vendor file management 12%
  • Supplier risk management 11%
  • Supplier onboarding 11%
Supply chain transparency is poor, with 65% of procurement leaders having limited or no visibility beyond their tier 1 suppliers

Source: Deloitte, The Global Chief Procurement Survey 2018

Does your organization utilize an eProcurement solution?

53 % YES
47 %  NO

%

%

33% of procurement leaders believe that their digital procurement strategy will enable them to deliver on their objectives and value

  • Digital strategy will deliver 33%

5% [of respondents] in 2017 said that they were seeking to increase internal stakeholder satisfaction. Whereas in 2018 this has increased to 23%.

source: The Hackett Group, Procurement executive Insight 2018

%

2017

%

2018

The main risks reported by participants in the 2018 edition of The Hackett Group’s annual Key Issues Study

The Hackett Group’s annual Key Issues Study 2018

  • Cyber / information security 50%
  • Access to critical talent 43%
  • Intensified competition 49%
  • Regulatory risk 29%
  • Disruptive innovation 29%
  • IP theft / industrial espionage 20%
  • Percentage of process in scope for digital transformation 30%
  • Percentage of staff involved in executing digital transformation 8%
  • Percentage of procurement roles that will be impacted by digital transformation 27%

30 percent of the procurement processes is in scope for digital transformation

8% of staff are involved in executing digital transformation initiatives

27% of procurement roles will be impacted by digital transformation in 2018-19

USE OF MAINSTREAM TECHNOLOGIES IN PROCUREMENT

  • Cloud-based applications / SaaS 45%
  • Data Visualisation 22%
  • Master Data Management 16%
  • Advanced Analytics 20%
  • Mobile Computing 20%
  • Social Media 11%

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