Procurement: at digital tipping point?
Faced with spending constraints, it has become critical for CPOs to unlock the value of emerging Digital technology. Chief Procurement Officers are under increasing pressure to rein in costs in a stagnant market, they are also being presented with a unique opportunity to embrace Digital business processes and bypass inefficient legacy systems. Globally, CPOs are concerned with rising risk levels and a skills shortage, with the former being fuelled by weakness in global economic metrics and geopolitical uncertainty.
The Deloitte Global CPO Report 2016 explores CPO sentiment in key areas of talent, business engagement & technology. Local CPOs are under increasing pressure amidst widespread market volatility and general economic malaise. Political conflict, a crippling drought, and a beleaguered Rand, are some of the issues local organisations are faced with, forcing them to find new supply chain solutions and adjust their strategies.
A major theme of this year’s Global CPO Survey 2016 was the need to implement new and emerging technologies in order to streamline processes. The survey found that Digital technology spend is rising, with 70 percent of CPOs investing in self-service solutions, up by more than one-third in a year, while investment in mobile, cloud and social media is also increasing. In South Africa, there is undoubtedly a unique opportunity to leapfrog legacy systems and move straight into the Digital era.
Is the procurement function at a digital tipping point? To what extent will emerging trends such as artificial intelligence and cognitive analytics revolutionise the function? Does your procurement function have the capabilities to embrace the digital storm? Read more in The Deloitte Global CPO Report 2016.
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