New CAMELOT study investigates trends in procurement
Mannheim, 07/09/2019 – For many procurement organizations, the development of digitalization is among their top priorities. Nevertheless, to date 98% of procurement departments in businesses have had difficulties in implementing this goal and by their own estimate are currently showing a low to middling level of digitalization. Over 70% of procurement managers see errors and the low quality of data analysis as a significant problem for procurement. These are the results of the new procurement study from CAMELOT Management Consultants, for which the consulting specialist surveyed procurement managers from 10 countries.
Procurement organizations clearly see the significance of digital technologies for the implementation of the procurement strategy. However, in reality the use of these technologies is severely lagging behind digital ambitions. The pace of the digital transformation can only increase if strategy and the human aspect are brought to the fore”, commented Ferhat Eryurt, Head of Procurement Consulting at CAMELOT, on the results of the study.
The study shows how important it is to develop the procurement strategy in harmony with digitalization and with a clear focus on change management. Underused data (71%), the application of outdated technology (51%) and the lack of cooperation within the company (36%) are some of the challenges with which procurement departments are currently forced to contend. Half of the study’s participants cited change management, inclusion of executive management and development of know-how as factors critical to the success of digitalization initiatives.
Procurement managers have clear expectations with regard to digitalization projects: for them, the additional value of digitalization initiatives lies in process optimization (75%) and cost reduction (59%).
The cross-sectoral study “Digital Transformation in Procurement” is available as a free download at www.camelot-mc.com.