Eight in 10 firms are not taking full advantage of the potential of digital procurement, according to a survey.
In a report procurement software company Jaggaer said 54% of firms had “laid the foundation” for digital transformation but only 17% have “end-to-end and integrated processes”.
The release of the report follows the announcement of a deal to combine Jaggaer and BravoSolution to form “the largest spend management company in the world”.
The survey, of 168 firms across sectors, found a fifth had no integration of data across areas such as category management, supplier management and sourcing, and of those who did, 77% did so with manual processes.
“These results can be explained by the fact that, in the past, technology was implemented in procurement on a process by process basis,” said the report.
“Technology is still mostly transactional and is primarily used for core processes in SRM, e-sourcing, and e-procurement. Only 2% of organisations already use ‘smart’ technologies that help procurement make better decisions by offering recommendations to users and learning from past activities.”
The report said the technologies with the most potential for efficiency and effectiveness, according to respondents, were SRM, e-procurement, e-sourcing, big data analysis and predictive analytics.
Firms were “still rather reluctant” to implement blockchain, robotics and digital assistants/chatbots.
Robert Bonavito, CEO of Jaggaer, said: “New technology is going to completely revolutionise the daily routine in procurement. By implementing modern procurement software, more than half of all procurement organisations have already taken the first big step towards digital end-to-end processes, automation, data consolidation, and using KPIs for strategic decisions.”
Jaggaer is set to acquire BravoSolution from Italmobiliare in a €184m deal to become “the largest independent, vertically-focused spend management solutions company in the world”.
Jaggaer said the acquisition, which is subject to approvals, would result in it having 1,850 customers connected to a network of 3.7m suppliers in 70 countries.
Italmobiliare, which will retain a 9.5% stake in the new entity, said the deal would produce a group offering “a complete range of services for their clients by combining BravoSolution’s B2B sourcing business with Jaggaer’s procure-to-pay business”.
☛ Want to stay up to date with the news? Sign up to our daily bulletin.