Seven in ten UK organisations say the global pandemic has increased the need for procurement to digitally transform…

Subscribe

The COVID-19 pandemic has reinforced the importance of digital transformation in procurement and supply chain management according to a new study from Ivalua, a leading provider of global spend management cloud solutions. The research has shown that seven in ten (70%) UK organisations say COVID-19 has increased the need for digital transformation in procurement. The study of 200 procurement, supply chain and finance professionals in the UK found organisations believe that greater digitalisation (84%) and better digital skills (83%) will enable them to more effectively mitigate the impact of COVID-19 on the business.

“The global COVID-19 pandemic will be the catalyst for accelerated digital transformation in procurement,” explains Alex Saric, Smart Procurement Expert at Ivalua. “The supply chain disruption caused by COVID-19 is completely unprecedented. Procurement is on the front line mitigating its impact, but the dearth of digital technology and skills in hindering its effectiveness. Teams are still reliant on paper-based processes or outdated systems, making it impossible to gain visibility into the thousands of suppliers they work with. This has made digital transformation vital, as those organisations that are more digitally mature will be able to quickly adapt to this new normal.”

According to the study, the biggest challenges organisations face when it comes to mitigating the impact of COVID-19 include: an overdependence on a limited set of suppliers (35%), identifying alternate suppliers (30%), a lack of understanding of suppliers’ risk exposure (28%), and a lack of visibility into tier 2 or 3 suppliers (18%). In response, 78% of organisations say that COVID-19 has increased their focus on supplier visibility, while 88% say greater digitalisation will improve their ability to collaborate with suppliers and find alternative supply during the global pandemic.

“COVID-19 has exposed gaps in organisations’ ability to gain complete visibility into their suppliers,” advises Saric. “This is leaving them in the dark as to the true vulnerability of the business and the supply chain to COVID-19. Digitally transforming procurement will allow organisations to create a 360-degree view of what is happening in the supply chain in near real-time, enabling them to make informed decisions about how to mitigate the impact of the pandemic. COVID-19 has exposed the discrepancy between more and less digitally mature organisations. As a result, we’ll see organisations accelerate their plans to digitally transform procurement, allowing them to mitigate the impact of this crisis and the next.”

Methodology: A UK study of 200 procurement, supply chain and finance professionals in organisations with over 1,000 employees, conducted by Vanson Bourne in May 2020 and commissioned by Ivalua.

Subscribe

Related Stories

How CEOs can drive culture change around diversity and inclusion

Diane Lightfoot, CEO of Business Disability Forum, on changing the narrative around diversity and inclusion in the workplace

Issue 39 of Interface magazine is live!

Ian Povey, CIO – Head of Payments Services & Technology, on the strategic transformation taking place at NatWest benefitting both the bank and its customers

Issue 34 of Interface magazine is live!

Our cover story this month investigates how Fleur Twohig, Executive Vice President, leading Personalisation & Experimentation across Consumer Data & Engagement Platforms, and her team are executing Wells Fargo’s strategy to promote personalised customer engagement across all consumer banking channels

Inside the great supply chain reset

We look into the need for a supply chain reset amidst inflation concerns, supply uncertainty, geopolitical issues and sustainability drives.

Five forward-looking skills for the future generation of leaders

Dominic Fitch, Head of Creative Change at leadership development specialist Impact International, outlines five forward-looking skills for the next generation of leaders.

EY: Why European CEO’s face speedbumps instead of roadblocks

In EY’s January 2023 European CEO Outlook Survey, it was discovered European CEOs expect short-term challenges but have reason for optimism.

A Sustainable Revolution

We explore the transformation of sustainability in procurement & visions of a future where sustainability & procurement are fully integrated.

Welcome to issue 40 of CPOstrategy!

STADA graces the cover of CPOstrategy this month!

Managing procurement in a volatile world

Nicolas Walden, The Hackett Group, discusses today’s landscape & what procurement’s future could hold amid a turbulent time for the industry.

How to build a people-first strategy that enables growth

Mike Randall, CEO at Simply Asset Finance, discusses how to build a people-first strategy that enables growth.

CEOstrategy is live!

Welcome to the launch issue of CEOstrategy where we highlight the challenges and opportunities that come with ‘the’ leadership role

We believe in a personal approach

By working closely with our customers at every step of the way we ensure that we capture the dedication, enthusiasm and passion which has driven change within their organisations and inspire others with motivational real-life stories.