Procurement transformation 2025: Why invest in procuretech and how to make the case – Kodiak Hub

In readiness for our Q1 2025 theme of Procurement Transformation, which will include how to even start your digital journey, how to make the case for it, how to shape your digital roadmap and how to survive it, we have received input from some solution providers on their own customers’ journeys.

Sam Jenks, Chief Revenue Officer at Kodiak Hub, shares what their customers are looking for from their digital procurement investment.

Customers require operational, tactical and strategic value

Kodiak’s customers receive value from our SRM solution in three dimensions: operational, tactical and strategic.

Operational: The time saved and operational excellence improved by automation of tasks, improved data analytics and process optimization (> OPEX reduction/optimization) is greater than 20%-50% of total FTE.

Tactical: Improved bargaining power and lower total cost of ownership, such as maverick spend, cost avoidance, volume consolidation and overview and control, is greater than 5%-10% of total spend saving.

Strategic: Preventing loss of shareholder value and/or increased top-line, e.g. decreased TTM, increased customer loyalty and improved decisions/optimized resource allocation, is greater than 1%-3% of market cap.

Many businesses go to market for solution support within supplier management with ESG/Corporate sustainability as a primary compelling event, or driving factor. This is primarily grounded in legislative requirements (CSDDD, CSRD, EUDR, LkSG etc.), Customer requirements on more sustainable products/services, and/or requests for supply chain transparency/due diligence.

These metrics also inform the typical basis of the business case.

Change management remains an issue

There are three primary and recurring challenges we see in the market:

• Change management: ambassadorship when adopting new technology and/or lack of willingness to adapt processes to solutions.
• Cleanliness of master data and/or the overall ability to integrate existing systems with new Procuretech.
• Inability to integrate into daily operations.

What urgent trends will inform 2025

While points listed above are some of the primary drivers, some of the macro trends we see driving the urgency for ProcureTech are as follows:

• Sourcing disruptions and supply chain resilience
• Regulatory requirements for transparency and traceability
• Climate change and the Big Shift
• The Efficient Revolution: AI, Automation and Big Data Processing

Many thanks to Kodiak Hub for sharing this insight with us.

Members can read our in-depth analysis of Kodiak Hub’s solution here.

As always, reach out to discover how Spend Matters can help with your procuretech ambitions for next year.

Consult TechMatch – our tech selection tool that helps procurement and finance technology buyers quickly explore the market and identify best-fit solutions.