Source One's series for keeping up with the most recent highlights in procurement, strategic sourcing, and supply chain news week-to-week. Check in with us every Monday to stay up to date with the latest supply management news.
While around half of supply chain and logistics organizations are currently implementing digital technologies, most professionals believe their organizations are average or below average where digital maturity is concerned. Lazarus points this out in her summary of a new Janiero Digital report. The report also suggests that cultural resistance is the number one road block to digital transformation and maturation. Clearly, the first step in a transformation is often the most difficult. Procurement still struggles to achieve the necessary executive buy-in; even this isn't always enough to guarantee success. Unrealistic budgets, too, keep many digital transformations from reaching their conclusion.
Procurement departments, the Doctor suggests, are perfectly equipped to promote ethical practices across the supply chain. While achieving the necessary executive buy-in will take time, it could prove well worth the effort. If the organization takes pains to market themselves as particularly sustainable and ethical, consumer interest could quickly recoup the additional costs of more purposeful Procurement. Less ethical practices can lead your company to face fines and other legal action. As competitors face these consequences, c-suite executives will recognize the benefit of new practices.
Sydney Lazarus, Spend Matters, 5/4/2018
A recent survey from the University of Applied Sciences Wurzberg-Schweinfurt and SAP Ariba has found that 83% of Procurement leaders believe digital transformation will play an increasingly large role in their operations as 2018 continues. 21%, however, report that their current operations are still largely manual. Among the 452 respondents, digital transformation generally means investing in IoT, robotic process automation, and machine learning technologies. In addition to the usual KPIs (cost reduction, cost avoidance, etc.), 'purposeful procurement' is an increasingly relevant concern. Nearly 90% of survey respondents plan to invest in sustainability, CSR, and diversity in the near future.