Economist Impact’s report uncovered how recent events heightened expectations for procurement processes in various industries. With this, the integral role of SAP in procurement transformation was reinforced as organizations utilize its solutions to streamline procurement operations.
Over the past years, changes have been made to procurement as a result of the COVID-19 pandemic. Organizations were able to identify areas of improvement, but also areas of concern with their current procurement strategy. To explore how companies are incorporating these changes into their procurement strategy, Economist Impact conducted a global survey of 430 procurement professionals from 14 major economies who had been actively involved with procurement in recent years.
Titled Chain reactions: Building value in procurement through digitalization, the report provides valuable insight into how the role of procurement has evolved over time. The report reveals how events caused by the pandemic have elevated expectations for the role of procurement within businesses. It also highlights how, as a result, procurement is now being tasked with driving business innovation and value creation.
In light of the current economic conditions, business leaders are advised to focus on controlling costs for their respective businesses. The Economist Impact survey found that more companies will be focusing on maximizing cost savings by 39.8% of the respondents to bring value to their respective businesses – this is the strategy that is put forth by 45.1% of chief procurement officers.
Additionally, reducing risk — an issue that has managed to grow in significance due to the dependence of Western Europe and the United States on Asian manufacturing — is the second most identified approach out of the top three in order to deliver increased value to procurement. This strategy received 37.9% of the total survey results.
Indeed, the SAP sponsored wide-ranging research that was released just a few days ago shows the shifting procurement functions and strategies within organizations and highlights the main factors driving the trends. Moreover, the study further reinforces the contribution of SAP in procurement transformation and how the company’s solutions and services can help organizations transition to a more agile, efficient, modern, and sustainable procurement process.
How SAP Solutions Contribute to Procurement Transformation
SAP has a long history in the procurement industry and their diverse software solutions prove just how well they have transformed over the years. The company’s wide range of products and services has now expanded to include not just procurement, but also other industries like manufacturing, retail, and more.
The German tech giant’s procurement solutions for the SAP Ariba network are designed to help organizations solve complex procurement challenges and optimize their supply chain. These solutions demonstrate SAP’s commitment to providing comprehensive solutions that maximize efficiency, reduce expenses, and drive growth by delivering best-in-class guidance and expertise that can be accessed globally through a wide range of innovative services.
A notable example of how SAP has contributed to procurement transformation is when Flint Group streamlined its indirect materials and services procurement processes by implementing the SAP Ariba procurement system. This allowed Flint Group to easily find suppliers and make pricing comparisons, while also providing the ability to increase efficiency with automated workflows.
Moreover, the SAP Ariba catalog is a single searchable location where suppliers can post their products and services. The benefits of using this system include significantly reduced administrative effort, improved visibility into existing inventories, and the ability to make informed purchasing decisions through better negotiation positions with suppliers.
