How can raw material procurement measure and improve its digital maturity and readiness?

1 What is digital maturity and readiness?

Digital maturity and readiness are two related but distinct concepts that describe the level of adoption, integration, and optimization of digital technologies and capabilities in a business function. Digital maturity refers to the extent to which digital solutions are aligned with the strategic goals, processes, and culture of the function, and how well they deliver value and performance. Digital readiness refers to the ability and willingness of the function to adopt, adapt, and scale digital solutions, and how prepared they are for future changes and disruptions. Both concepts are essential for raw material procurement to leverage the benefits of digitalization and automation.

2 Why do digital maturity and readiness matter?

Digital maturity and readiness are essential for the competitiveness, resilience, and innovation of raw material procurement. Measuring and improving their digital maturity and readiness can help procurement teams to increase their efficiency and productivity by automating repetitive tasks, as well as improve their agility and responsiveness by accessing real-time data, insights, and forecasts. Additionally, it can enhance visibility and collaboration by integrating data sources, systems, and stakeholders, while driving sustainability and value creation by optimizing resource utilization and minimizing waste and emissions.

3 How to measure digital maturity and readiness?

To measure their digital maturity and readiness, raw material procurement teams can use various frameworks, tools, and indicators that assess their current state, gaps, and potential. For instance, they can benchmark their performance against industry standards, best practices, and competitors with metrics such as cost savings, cycle times, quality, and customer satisfaction. Additionally, they can conduct a digital maturity assessment using a questionnaire or scorecard to evaluate their digital strategy, capabilities, culture, and outcomes. Lastly, they can perform a digital readiness audit through a checklist or survey to examine their digital skills, resources, infrastructure, and governance while identifying their strengths, weaknesses, opportunities, and threats.

4 How to improve digital maturity and readiness?

To improve their digital maturity and readiness, raw material procurement teams need to develop and implement a digital transformation roadmap that defines their vision, objectives, priorities, and actions. They should align their digital initiatives with their business goals, customer needs, and stakeholder expectations, and invest in the right digital solutions that suit their specific needs. Furthermore, they should build their digital skills and capabilities by providing training, coaching, and support. Additionally, they should monitor and evaluate their digital progress and impact by using data, analytics, and feedback in order to adjust their plans and practices accordingly.

5 What are the benefits of digital maturity and readiness?

By measuring and improving their digital maturity and readiness, raw material procurement teams can gain several benefits that enhance their performance, competitiveness, and value. Cost reduction is achievable by automating and optimizing processes, while risk mitigation is possible by accessing and analyzing data. Moreover, customer satisfaction can be achieved by delivering faster, better service. Additionally, innovation is possible by exploring new technologies, solutions, and opportunities. These benefits will help procurement teams lower operational costs, improve margins, manage risks, meet customer expectations, create new value propositions, differentiate from competitors and drive growth and sustainability.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?