As organizations slowly advance towards a new year, 300+ CPOs identify the deployment of new or improved technology as a key driver to elevate procurement to the next level.
While the European economic landscape has been away from ideal, the slow growth puts the weight on procurement teams to reduce costs and sweep in savings. CPO’s globally are, gearing up for the challenges focusing on various factors of efficiency, execution and effectiveness and chalking out investments to enable technologies.
Let’s have a look at few common issues that are faced across Europe:
- Bad Data – Though we have grown leaps & bounds into the era of Big Data; Bad quality of data is still a pressing problem. Procurement Teams across the globe are hungry for good quality of data in their legacy processes which is in turn hampering their ability to track savings.
- Governance – Over 6 out of 10 CPO’s mark corporate governance as a hindrance for procurement performance. Poor governance often overshadows procurement as a business driver. It is imperative for procurement to be considered as a key contributor to the business.
- Adoption – Legacy technologies are slowly being repelled by procurement professionals. The lack of good quality data and organized processes hamper the performance of procurement. More and more professionals are thus seeking out to advanced technology to improve processes. Teams are looking up to automation for the benefits that they bring along for example clear spend visibility, actionable analytics and so on.
More and more European organizations are more likely to implement integrated source-to-pay suite of solutions to take procurement performance to the next level. As of 2015, a procurement team’s ability to use technology is considered as a game changing strategy by CPOs alike.
So how should a 2016 CPO tackle the incompetency? Stay tuned for the next post.
Our latest research report from the CPO Game Changer Series talks about: New and Improved Technology. Authored by Andrew Bartolini, Chief Research Officer at Ardent Partners the report talks about:
- Gearing up for Procurement 2016
- CPO’s Top Game Changing Strategies
- Technology Adoption Rates and its Impact
- Value of process automation tool across the Source-to-Settle Process