Just 4% of businesses are prioritising automation and mechanisation in their procurement processes.
This figure, from procurement advisory firm Odesma, highlights the industry’s ongoing struggle to adopt the latest tech, despite a wider range of procurement technology being available than ever before.
The data also shows that 82% of businesses have an inflated view of the maturity of their procurement operation, and one of the weakest areas of assessment was SRM (supplier relationship management), with 95% of companies falling well below par.
On a more positive note, competency was shown to be consistently high, with the procurement industry’s knowledge of its own function remaining stronger than ever. This may be of little consolation though when other areas are falling so far behind.
The data was obtained via Odesma’s Assessor tool. Launched in November 2018, the software analyses procurement function via self-assessment and external competitive comparison with peer group organisations. It targets specific improvement actions that enhance performance, competitive advantage and adds value to an organisation.
Ed Cross, executive director at Odesma, said: “This reticence to prioritise technology in procurement strategy reflects a lack of understanding of the tech market and current price points. It also shows a failure to acknowledge the proven benefits gained through improved efficiency. Education of c-suite decision makers on the long term savings to be made through short-term investment is vital for making any form of progress here.
“Such an inflated view of businesses’ own procurement functions is down to a lack of understanding of what is going on outside their own markets. This inward mentality can leave companies trailing behind competitors, and we need to start looking outside our own industry to truly excel.”
Odesma Assessor has cut time taken to analyse procurement function by over two thirds. This can now be done in two weeks, instead of the industry average of 6-8 weeks, allowing improvement strategies to be put in place much faster.