Research from Ivalua, a leading provider of global spend management cloud solutions, has found that almost half (46%) of UK businesses are frustrated by a lack of procurement process digitalisation. According to the study, 43% of respondents believe that the rate of digitalisation within procurement is low, while a third (33%) claim that procurement digitalisation is stagnant and hasn’t progressed in the last 12 months.
The research, conducted by Vanson Bourne on behalf of Ivalua, surveyed 200 UK-based procurement, supply chain and finance professionals to examine digitalisation in procurement. Eight-in-ten (81%) UK businesses say a lack of digitalisation is preventing them from collaborating with suppliers and internal stakeholders, while 83% believe it is preventing them from innovating and executing on new revenue streams and opportunities. Additionally, two-thirds (67%) of UK businesses say a lack of digitalisation reduces their ability to gain insights into spend and suppliers.
Digitalising processes still has a long way to go
While businesses recognise the need to digitally transform, the report found that on average, UK businesses have digitalised less than half (43%) of their procurement processes. The most digitalised tasks were transactional processes such as invoicing (55%), purchasing (42%) and budget management (33%).
UK businesses have also failed to digitalise strategic processes such as spend analysis (32%) and risk management (26%). Identifying and bringing on new suppliers is also critical for businesses looking to identify new opportunities to collaborate and innovate, but worryingly, most businesses have not digitalised supplier onboarding (89%) or sourcing (84%) processes. When it comes to digitalising procurement and these processes, UK businesses face a number of challenges, with the most common obstacles to digital transformation being their suppliers (29%), their technology (20%) and their processes (18%).
“Procurement has become a much more strategic part of every business, but a lack of digitalisation is preventing many teams from realising the potential value of their spend and suppliers. UK businesses need to take a smarter approach to procurement and move away from managing processes over email, phone, or paper, to instead capture everything digitally. This will help businesses identify opportunities to innovate, collaborate and grow revenues, giving them the chance to build better products and services that will differentiate them from the competition. Digitalising procurement creates an all-encompassing view for businesses, helping to create a competitive advantage that will see them soar past digital laggard competitors,” concludes Saric.
To download the full report, “Gaining the advantage in challenging times – why businesses need to digitally transform procurement now more than ever”, please visit: https://info.ivalua.com/uk/report-competitive-advantage