A study conducted by The Hackett Group, Inc. found that a digital transformation can reduce the operational costs of typical procurement organizations by 45% and world-class procurement companies by 33%.
The findings suggest that a simple interim approach will result in a 17% cost reduction in typical procurement organizations and 21% in world-class procurement companies. This approach includes the deployment of cognitive automation, smart data capture and robotic process automation.
The report also highlighted the influence of digital transformation in supply chain management such as the changes in the skills requirements for supply management professionals and the growing focus of procurement organizations on the customer.
According to Chris Sawchuk, The Hackett Group Principal & Global Procurement Advisory Practice Leader, digital transformation is making traditional skills relevant. Thus, procurement professionals need to improve their skills in change orientation and data analysis and modeling.
To achieve a complete transformation, procurement organizations must also service delivery, human capital, service partnering, information management and analytics.