▾ G11 Media Network: | ChannelCity | ImpresaCity | SecurityOpenLab | GreenCity | Italian Channel Awards | Italian Project Awards | ...
InnovationOpenLab

Supply Chain Management Inefficiencies Threaten Organizations’ Competitive Advantage, New JAGGAER Research Reveals

As C-suites turn to supply chain management and procurement teams to help navigate today’s highly disruptive and volatile business landscape, 75% of organizations worldwide have increased or maintai...

Business Wire

Ninety-three percent of IT teams report that modernizing and digitalizing their supply chain and procurement tech stacks is a priority

RESEARCH TRIANGLE, N.C.: As C-suites turn to supply chain management and procurement teams to help navigate today’s highly disruptive and volatile business landscape, 75% of organizations worldwide have increased or maintained their procurement and supply chain technology budgets, according to a new global research survey released today by JAGGAER. These investments, however, aren’t going far enough: Over 40% of procurement teams state manual and inefficient processes hold them back from fully addressing the C-suite’s critical business priorities.

“Procurement and supply chain professionals are emerging as enterprise linchpins. C-suites are increasingly leaning on the function’s expertise and tools to advance key objectives, such as business continuity, responsible business practices, profitable growth, and competitive advantage. Our research shows that despite the strategic role procurement and supply chain teams play, these professionals remain underequipped, which presents a huge risk to organizations,” said Andy Hovancik, Chief Executive Officer at JAGGAER.

Fifty-three percent of procurement and supply chain managers and directors say that workload issues and inefficiencies are the top risks facing their organizations. Equipped with the right technology and more time, managers and directors state that they would be able to grow the business and drive competitive advantage (51%), increase profitability and lower costs (43%), improve internal efficiency (40%), and strengthen supplier relationships (31%).

JAGGAER’s research – Rising Influence: The State of Procurement in 2024 – is based on insights from more than 220 business leaders. The research explores the rising strategic role of procurement and supply chain management and what these professionals need to be successful. Key findings include:

  • Supply chain tech stack modernization is a priority, according to 93% of IT teams. Thirty-eight percent of IT teams report they’ve decreased spending on function-specific technology. The fact supply chain and procurement technology budgets are growing is a testament to the value of the function.
  • Procurement states that automation and AI would most transform the way they work when it comes to spend analytics for better decision-making (58%), RFP creation and evaluation (38%), PO management (35%), and invoice approvals for payment (31%).
  • Generative AI offers workload relief. Procurement and supply chain professionals anticipate that generative AI will be most useful for helping them summarize supplier performance, identify new suppliers, and automate routine tasks such as writing emails.
  • Financial pressure remains red hot. Despite the improved economic outlook, half of procurement and finance professionals report that inflation, recession risk, and monetary policy changes are having a major or severe impact on their business. Procurement is playing a key role in fighting back by cutting indirect expenses (49%), consolidating spend (48%), and re-negotiating supplier contracts (44%).

Digital Transformation is an Enterprise Priority, But Progress Lags

While organizations are aiming to modernize their technology infrastructure, JAGGAER’s research uncovered that only a small percentage of procurement and supply chain teams are close to fully automated. Many organizations lack automation in strategic areas such as supplier negotiations (58%), sourcing (44%), contract management (38%), and supplier identification and selection (37%).

Procurement teams report that increasing automation and AI would add value in several areas, including helping them identify the best places to reduce costs across the business (60%), be more efficient by handling routine tasks (56%), find alternative suppliers with better prices and quality (45%), work more collaboratively with suppliers (28%), and attract and retain talent by transforming digitally (11%).

“The faster the C-suite invests in automation and AI to equip their procurement and supply chain teams to drive results in strategic areas, the faster the business will be able to hit its critical objectives and preserve its competitive edge,” said Dawn Andre, Chief Product Officer at JAGGAER.

Download the full report to dive deeper into the findings.

About JAGGAER: Autonomous Commerce

JAGGAER is leading the Autonomous Commerce revolution, a self-governing B2B commerce experience between buyers, suppliers, and partners. Over $500 billion worth of goods flows frictionlessly through our Enterprise Commerce Network every year. Leveraging AI and machine learning, our intelligent procurement solutions provide enterprise buyers and suppliers with smart-match recommendations that align buyer needs with supplier capabilities. Our solutions autonomously execute many of the repetitive, behind-the-scenes tasks required to facilitate enterprise commerce. We are Networked, Intelligent, Comprehensive, and Extensible. We are over 1,200 employees strong, all focused on customer success. For more information, visit www.jaggaer.com

Fonte: Business Wire

If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter.

Related news

Last News

Axyon AI: Italian Artificial Intelligence for Finance applications

Axyon AI offers an AI platform specifically designed for asset management, with several interesting strengths for those approaching machine/deep learning…

Italian Artificial Intelligence tackles medical emergencies at sea

Mermaid-AI is a telehealth platform at sea based on a visor equipped with an AR, medical Artificial Intelligence algorithms, satellite communications…

Gyala: a new "Made in Italy" cybersecurity

With a proven track record in the defence field, Gyala now also brings its cybersecurity technologies to the wider enterprise audience

ITALIAN PROJECT AWARDS 2023: the best IT projects of the year, awarded

Now in its third edition, the initiative is targeted at the ICT professional world and honours projects based on innovative ideas and technologies, realised…

Most read

AHSG Announces Leadership Transition as CEO Mark Smith Joins Board of…

AHSG, a technology-driven, healthcare workforce solutions company, today announced Mark Smith will be stepping down at the end of June as Chief Executive…

Verituity Raises $18.8M to Accelerate its B2B and B2C Verified Payout…

Verituity, a leading provider of intelligent, verified payouts solutions, announced the successful close of an $18.8 million funding round led by Sandbox…

HubStar Launches H2O, a Revolutionary New Approach to Optimizing Occupancy…

HubStar, a leader in dynamic workplace management technology, today announced the launch of H2O, the first ever hybrid occupancy platform designed to…

SMILE Health 2024: CareQuest Innovation Partners and MATTER Announce Largest…

CareQuest Innovation Partners, a company focused on validating and scaling transformative solutions to improve overall health through oral health for…

Newsletter signup

Join our mailing list to get weekly updates delivered to your inbox.

Sign me up!