Digital transformation in sourcing processes is making lives easier and raising the profile of the procurement function. Sourcing has moved beyond manual processes and email and Excel, which can be error-prone and difficult to keep current. Sourcing is becoming data-driven and technology is becoming the liberator.
Digitization in procurement is not new: according to PwC 77% of the companies they recently surveyed are already onboard. Cost reduction remains the #1 strategic priority in procurement. Digital transformation is the enabler. The majority of companies in PwC’s 2022 review are already equipped with a procure-to-pay (P2P) solution or one that helps manage the RFX (request for x encompasses all RFI, RFP, RFQ or RFB) process. Affordable solutions to transform the sourcing process have been long in the making but are now widely accepted as the new normal for procurement teams. There are many benefits from digitizing: more efficient workflows, better data quality, risk reduction, higher price transparency, and driving purchase prices down, leading to both time- and cost-saving.According to PwC, “82% of companies with a high level of process digitization succeed with value creation, thanks to data availability. Digital transformation is now also motivated by risk management and compliance, in addition to traditional objectives of process optimization and cost reduction. By 2025, middle market companies plan to strongly increase their investments in procurement digital transformation (+50% between 2020 and 2022), while large and very large companies will maintain their budgets.” Deloitte and PwC agree that CPOs are focusing their roadmap on S2P (source-to-pay) digitization. Automating the S2P process is no longer just nice to have.Image Source: Deloitte
