McKinsey: Automation is the key to solving procurement ills
At Procurement Magazine we have created a digital community for execs to share their products, learnings, and achievements. Our LinkedIn Newsletter brings the most influential projects, leaders insights, and topics to the forefront.
McKinsey: Automation is the key to solving procurement ills
A recent report from 麦肯锡 highlights the power of automating procurement to solve purchasing troubles brought about by global events.
The troubles in question arise from the usual suspects: The?pandemic ;?Brexit ; rising?inflation ; the?energy crisis ;?the war in Ukraine , and now; the increasing impact of?ecological threats .
The article refers to a recent Mckinsey?survey , which found that “among 160 business procurement leaders, 86% have observed gaps in purchasing capability as a result of the coronavirus.”
It goes on to say that “a similar number also believe that procurement plays an influential role in leading their organisation’s post-COVID recovery— and were nearly unanimous that a reimagination of the entire procurement function is required.”
The news is nothing new. Any organisation that isn’t heeding the incessant clarion calls to automate will find themselves at a major disadvantage in the procurement world, and in the business world at large.
A recent Procurement Magazine?article ?reiterated the message that “digitising procurement,” is “the key to success or failure”.
The article took its cue from a recent Probrand / CIPS - The Chartered Institute of Procurement & Supply report which reveals that the majority of businesses are really lagging behind in digitising their procurement processes.?
There is a clear disconnect between the call to automate and the number of organisations that are moving to do so.
The Probrand/CIPS report revealed that 63% of procurement professionals are still relying on manual systems, while 23% are spending a significant amount of time leafing through printed catalogues.
A cause for concern is that more than a quarter (28%) said they currently have no plans in place to move towards digitalisation at all.
Automation has the potential to counterbalance the obstacles brought about external threats, (now internalised to organisations), but in order for that to happen, procurement must move with haste to automate their processes.?
There are major?benefits to automation, notwithstanding:
Malcolm Harrison FCIPS , Group CEO of CIPS Group has said:
“If you’re standing still on digitalisation, you are already falling behind.”
--------------------------------------------------------------
Top News Stories
World Economic Forum: Circular economies can save our planet
A World Wildlife Federation (WWF) article has stated that "the amount of plastic in the ocean is expected to double in the next 15 years, and by 2050 there could be more plastic than fish in the sea (by weight).
Read more
Staff burnout continues to rock procurement & supply chains
CIPS - The Chartered Institute of Procurement & Supply study finds sustained staff burnout due to stress and high pressures are continuing to have a crippling impact on procurement and supply chains
Read more
Royal Philips, Unilever, Ingka Group & ZF: Towards Net Zero
The World Economic Forum looks at four major companies: Royal 飞利浦 , 联合利华 , Ingka Group & ZF 集团 in their efforts towards net zero economies
Read more
领英推荐
----------------------------------------------------------------
Trailblazer of the month
Paul Robertson : Global Category Director, Procurement, Retail Assets & Advanced Mobility at bp
Paul Robertson is an innovator who is focused on the biggest questions at the heart of consumer energy transition.
Find out more
Discover: The Top 10 reasons to digitise your procurement systems
If your organisation is to succeed it must adapt to the changing procurement landscape. Here are the Top 10 reasons to digitise your procurement processes.
-------------------------------------------------------------------------------
Don't Miss Our exclusive interview with...
飞利浦 ’ Chief Procurement Officer and Head of Sustaining Engineering Scott Schwartz on getting the best from strategic partners to benefit the customer.
----------------------------------------------------
Conclusion
It’s high time that procurement organisations, including yours, move to automate their processes. The fear should not be attached to change, but to the potential failures that will be brought about by failing to change.
----------------------------------------------------
About Procurement Magazine
Procurement Magazine is a digital media platform for you to showcase products, expertise, learnings, partnerships, and achievements with the world’s largest community of [industry] executives. Because, as Robert Noyce famously said,
"Knowledge is power. Knowledge shared is power multiplied."
Do this through a magnitude of digital media such as interviews, articles, case studies, videos and webinars. Download the Media Kit for more information.
Read the latest edition of Procurement Magazine
-----------------------------------------------------------
Thanks for reading
Thank you for being a part of the Procurement Community we're building! To get industry updates like this more often, sign up for our weekly Procurement Magazine Newsletter, here .
B2B Global Sourcing Platform , Procurement Tranformation, Sustainable Procurement, Decarbonisation In Supplychain
2 年Any chance to collaborate? Procurement Magazine , we are procurement solutions company based in India GainEdge Consulting Pvt. Ltd.