Gartner released their predictions for 2017 on Procurement Technology at the end of 2016 and this is what the future of procurement is – the procurement technology market is evolving rapidly. The future is here.
The impact of digitising processes, machine learning, cloud delivery and the overall consumer experience will all be part of your future.
Gartner says that:
By 2018, indirect procure-to-pay (P2P) solutions will deliver double the savings of older P2P solutions
By 2019, adoption of e-invoicing, e-sourcing and supplier information management technology will result in a tenfold increase in digital B2B interactions
In 2020, modest adoption of procurement and sourcing technology will limit smart machine technology’s penetration to 10% of the total available market
By 2020, over 70% of spend on procurement and sourcing technology will be for cloud delivered solutions
This is the future
Cloud delivery is becoming the de facto standard for procurement and sourcing technology. In 2016, cloud delivery accounted for almost all (over 90%) of the new implementations of procure to pay (P2P) solutions globally, in both the public and private sector.
The move from paper-based process to digital between business buyers and suppliers will accelerate dramatically. “Adoption is not going to be of all-in-one supply collaboration platforms, but solutions that digitise clusters of related domain activities.”
Leaders must now pursue a “cloud first” strategy for procurement and sourcing technology investments to improve access to innovation. Consulting key suppliers is again key before investing in what can be expensive legacy procurement technology. Instead of relying on “nobody got fired for buying IBM”, look at the new breed of tech which is likely to be more flexible and cheaper.
Look to P2P solution functionality that supports real-time transparency for all users and ongoing access to data “as it happens”.
Be smart, Start Small
Keeping up to date with developments in smart procurement technologies is key. Understanding what opportunities are available both from existing vendors and in the broader market for your specific business is paramount. Don’t just get it because it says Oracle or SAP on the side.
Conducting proofs of concept with vendors of smart technologies is a great way to minimise risk and cost. Once you have tested, you can replicate and eliminate all blockers on a small scale before expanding to the entire organisation. Be smart about the future.