Companies believe that the coronavirus pandemic will be a driving force for the increased need for digital transformation in procurement.
Research conducted by Ivalua shows that of the 200 procurement, supply chain, and finance professionals surveyed, 84% believe that greater digitalisation and 35% believe that better digital skills, will enable them to more effectively mitigate the impact of COVID-19 on the business.
Alex Saric, Smart Procurement Expert at Ivalua said: “The global COVID-19 pandemic will be the catalyst for accelerated digital transformation in procurement.
“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“Teams are still reliant on paper-based processes or outdated systems, making it impossible to gain visibility into the thousands of suppliers they work with.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.”
The survey found that 70% of organisations say the global Covid-19 pandemic has increased the need for digital transformation in procurement.
Companies are concerned of “over-depending” 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%). All present challenges that need to be overcome.
Saric adds: “COVID-19 has exposed gaps in organisations’ ability to gain complete visibility into their suppliers.”
He concludes: “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.”