As PwC, we are pleased to share the results of our 4th edition of the Digital Procurement Survey, which we conducted to gain more insight into how widely and successfully new digital technologies are used in purchasing. With over 800 participating companies from more than 60 countries, it uniquely represents the global barometer of digital procurement transformation. We thank very much the purchasing professionals in Turkey that provided valuable contributions by high-level participation with 100 answers.
Supply chain disruptions, new working methods (remote / hybrid), rising prices for many commodities, scarcity of some key ingredients... Procurement has become more central to business operations than ever before in the wake of the COVID-19 crisis.
The emergence of these new risks has changed Procurement departments' perception of digital transformation. As digitalization continues to advance in companies across all industries, it is now becoming a necessity to address the challenges of cost control, process efficiency, supply chain traceability and securing supplier relationships. In addition, digital transformation is now also motivated by Risk management and compliance.
The digital roadmaps of companies around the world include examples of innovative and sustainable use cases, most notably following CO2 emissions. ESG issues are expected to gain importance in Turkey in the coming years. This very clearly shows that procurement is now actively driving the transition to achieve the targets for sustainability.
We, as PwC Turkey, will continue to develop best practices and sample solutions at every stage from strategy to execution in the field of supply management including digitalization in the line with the prominent and changing balances since the pandemic period.
İsmail Karakış
Survey sample: A global insight into the Procurement professionals' world
PwC Global Digital Procurement survey – 4th edition Executive summary
Current state of Digital Procurement
- Digital Transformation is progressing on CPOs’ roadmap (+6 points), of which Cost reduction and Strategic Sourcing are still the spearhead (61%).
- Digital transformation is now also motivated by Risk management and Compliance, in addition to traditional objectives of process optimization and cost reduction.
- Source-to-Pay digitalisation has become the “New normal” for Procurement departments as 90% of respondents use either S2C nor P2P solutions and 77% use both of them.
- 80% of companies with a high level of process digitalisation succeed with value creation thanks to data availability. However, 55% of companies still struggle leveraging their data.
Future state of Digital Procurement
- Procurement departments set very ambitious digitalisation objectives for 2025, with an average target of 72% of digitalisation. However, perception of actual digitalisation rates of Procurement processes ran into COVID-19 reality, with a 6% decrease to reach an average 41% digitalisation rate.
- Middle market companies plan to strongly increase their investments in Procurement digital transformation (+50% between 2020 and 2022), while large and very large companies will maintain their budgets.
- CPOs are focusing their roadmap on Source-to-Pay digitalisation as well as on innovative use cases of ESG and Supply chain traceability. The trends tend to a shift of digital roadmaps: focusing on proven added-value use cases while shelving exploratory digital use cases.
- The tracking of suppliers’ CO2 emissions is at a starting point to be a “Game-changer” for Procurement departments: already 27% of companies use or experiment this emerging use case within their organization.
- The applicability of Blockchain in Procurement processes still needs to be clarified for 59% of Procurement departments. However, they see it as a vector of valuable improvements for the entire Supply chain processes.
