Author Archives: Paulie Anthony, Aquiire

Procurement Digital Transformation: The Top 10 Ways Real-Time E-Procurement Matters

The Hackett Group’s 2017 reportRaising the World-Class Bar in Procurement Through Digital Transformation cited that 84% of procurement leaders believe that digital transformation will profoundly transform the way they deliver their services over the next three to five years. Conversely, only 32% have developed a strategy for getting there. The report finds that typical procurement organizations can reduce procurement process costs by up to 24% by implementing cloud-based procurement applications, robotic process automation (AI), advanced analytics and other digital transformation approaches. At Aquiire, we have found that even more untapped savings can be achieved by introducing real-time data into the purchasing and procurement processes.

New Ways to Achieve Unprecedented Savings on Indirect Spend

In Deloitte’s 2016 Global CPO Survey 2016 report, 74% of respondents stated cost reduction as their top priority in 2017. Also, 70% of the surveyed procurement executives cited indirect spend as a top focus for controlling and reducing costs. Recent studies have found that indirect spend can account for up to 50% of a company’s purchases, and manufacturers specifically can spend 20% or more of their total revenue on indirect expenditures. It is clear the next profound impact area for procurement professionals is in accessing hidden and unexploited areas of indirect spend.