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Areas procurement should focus for successful digital transformation

Procurement has shown significant changes in the recent years and furthermore, studies suggest that it will undergo a complete revolution in the coming five years. Technology has already taken hold of things and has accelerated business transformation. Now the coming years will tell us how procurement moves forward along with technology.

An online industry survey states that 32% of the organizations have started using digital technology and 25% have the resources and skills to actually take their procurement functions through digital transformation. Moreover, all the industries across the globe believe in one simple fact that is digital transformation will change the way the procurement function delivers services.

Thus, in order to succeed in coming years, procurement leaders should take care of certain areas which will make digital transformation easier for their organizations. Data and technology are some of the areas that need immediate attention from the leaders.

Figure 1: shows areas to focus to undergo procurement transformation


The main aim of an organization should be to become a well-integrated business where all functions work in an orchestrated fashion. Data is the key to ensure where do various functions stand and what all they need to do in order to achieve a desired state. Procurement being a number-driven function holds a central position here.


Procurement organizations can use various tools including social media, big data, or even cloud computing to accelerate digital transformation. Some researchers say, in order to facilitate digital transformation, a bespoke approach should be developed rather than following a ‘one size fits all’ policy.


In order to facilitate digital transformation within procurement division, organizations can implement a system commonly known as ‘everything as a service’ (XaaS) portfolio. The service oriented architecture will change the way procurement teams work and that will have a long-lasting impact on the business.  


In order to make procurement function fully digitized, organizations should work on the training and development of stakeholders. This will not only generate cost savings but help in efficiency gains also. Moreover the procurement should focus on three areas: first being the stakeholder experience, second being the savings and third being the value creation and sustainability.

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