Only 6% of leading companies have fully embraced digital transformation in the way they buy services in the $16 trillion global market, a new survey released today shows.
The study, organized by the Sourcing Industry Group (SIG), in association with Globality, the company transforming the way global enterprises source services with its leading AI-powered digital solution, found that 94% are in early- to mid-stages of their transformation, meaning the vast majority have considerable work to do.
Furthermore, only 15% of organizations surveyed believe they are either “best in class” or “industry leaders when it comes to digital transformation of their procurement processes and operating models, and 50% of global procurement leaders admit their companies are ‘laggards’ when it comes to the digital transformation of their B2B sourcing processes and operating models.”
“Organizations who take proactive measures to transform their current procurement processes and operating models will enjoy considerable competitive advantage in a rapidly changing market, both now and well into the future,” said Dawn Tiura, SIG Chief Executive Officer. “This study illustrates how companies further along that journey are able to focus on high-profile goals and initiatives such as supplier diversity and corporate social responsibility.”
The survey questioned more than 120 global procurement leaders, with 84% of respondents at the director level or above. The industries represented ranged from arts and entertainment to manufacturing, finance and insurance. More than half of the respondents were responsible for procurement spend in North America, and more than 40% percent were accountable for global spending.
Globality’s Platform and Marketplace is used by leading global companies, including British Telecom, Santander, HSBC and GEA, to transform the sourcing of high-value services by automating demand creation, supplier identification, proposal evaluation, and the statement of work creation process through an intuitive self-service experience.
“The average Global 2000 company spends over $4 billion a year on services, and all of it can be spent smarter and better,” said Keith Hausmann, Globality’s Chief Revenue Officer. “These findings highlight the need for companies to utilize the sophisticated, AI-powered technology that now exists to enable fair, competitive, and sustainable self-serve sourcing.”
“Through digital transformation, procurement can create far more impact on a company’s profitability, as well as help enable its ESG agenda,” he added.
Click here to download the full survey report: The Future of Procurement, Today: How Leaders Can Seize the Moment by Digitizing Procurement.