Savings
Innovation
Quality
Speed
Sustainability
Risk
Organization
Processes
People
Performance
management
Collaboration
AI and digital analytics
Existing system landscape
How can procurement improve a company’s overall performance?
Value delivery
How should the procurement team be structured to optimally support the targeted value delivery?
Operating model
What are the right digital procurement solutions in a particular situation and how can they best be implemented?
Digital
Savings remains vital. But to unleash the full value potential and make a difference in the market, advanced levers and AI-based solutions (like BCG’s AI Negotiation coach) are key. Next to category and market know-how, a differentiated approach to A, B and C suppliers is required.
Innovation and cutting-edge solutions are a license to operate across functions—and procurement plays a key role by leveraging the supply base and its engineering power. Digital hubs incentivize vendor collaboration through, for example, joint idea generation platforms.
Supplier quality plays a major role in streamlining supply chains with minimal failure. Live quality control through preset KPIs—such as delivery time, quantity, and faults per unit—can be measured through IoT, giving suppliers quantitative-data-based, real-time alerts.
The speed of the purchase process is accelerating, improving internal efficiency. Procure-to-pay robotic applications increase speed from purchase request through invoice payment. E-catalog solutions increase speed through “no touch” orders on standard items.
Trade and tariff restrictions, pandemics, and geopolitical conflict are among the factors increasing the risk of supply chain disruptions. Digital solutions make a difference, predicting in real time the likelihood and impact of supply shortages.
Procurement organizations committed to sustainable business practices, such as reducing CO emissions and decarbonizing operations, will not only comply with today’s extensive laws, regulations, and consumer demands but also set themselves up for success well into the future.
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Tools that analyze spans, layers, and overall depths of the organization—automatically suggesting and evaluating alternative setups—are the basic; aligning on global versus local responsibilities along the procurement process and across business units remains the art.
AI and digital analytics
Existing system
landscape
A company’s underlying ability to leverage AI-powered and analytical solutions is key to the digital transformation of procurement. This includes deriving procurement insights from master data sources, using advanced analytics or AI tools, to quickly make educated purchasing decisions.
Underlying data availability and quality will determine how a company can leverage digital analytics and drive cutting-edge solutions. The current IT landscape—including ERP and business warehouse systems—and expected improvements should form the backbone of future digital applications.
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Existing system landscape
Digital analytics
Collaboration
Performance
management
People
Processes
Organization
Sustainability
Risk
Speed
Quality
Innovation
Savings
Innovation and cutting-edge solutions are a license to operate across functions—and procurement plays a key role by leveraging the supply base and its engineering power. Digital hubs incentivize vendor collaboration through, for example, joint idea generation platforms.
Savings remains vital. But to unleash the full value potential and make a difference in the market, advanced levers and AI-based solutions (like BCG’s AI Negotiation coach) are key. Next to category and market know-how, a differentiated approach to A, B and C suppliers is required.
Supplier quality plays a major role in streamlining supply chains with minimal failure. Live quality control through preset KPIs—such as delivery time, quantity, and faults per unit—can be measured through IoT, giving suppliers quantitative-data-based, real-time alerts.
The speed of the purchase process is accelerating, improving internal efficiency. Procure-to-pay robotic applications increase speed from purchase request through invoice payment. E-catalog solutions increase speed through “no touch” orders on standard items.
Trade and tariff restrictions, pandemics, and geopolitical conflict are among the factors increasing the risk of supply chain disruptions. Digital solutions make a difference, predicting in real time the likelihood and impact of supply shortages.
Procurement organizations committed to sustainable business practices, such as reducing CO emissions and decarbonizing operations, will not only comply with today’s extensive laws, regulations, and consumer demands but also set themselves up for success well into the future.
Tools that analyze spans, layers, and overall depths of the organization—automatically suggesting and evaluating alternative setups—are the basic; aligning on global versus local responsibilities along the procurement process and across business units remains the art.
Processes are still the primary allocation of procurement resources in most organizations—and there is great potential for optimization. Many manual tasks can be automated and made “bionic,” with bots, digital coaches, and data supporting the human buyer.
Organizations must assess strengths and weaknesses to address learning needs—especially as deep content knowledge is increasingly important for category managers. Skill sets vary from operational to strategic positions, and digitization skills need to be augmented.
Organizations are increasingly integrating procurement performance management and ERP systems. Digital solutions include integrated management tools, linking to financial accounts, and customer satisfaction questionnaires.
As the supply chain grows more complex, supplier collaboration becomes more important in end-to-end processes—to enable delivery on the respective value dimensions. Live supplier feedback and collaborative innovation sharing can help.
A company’s underlying ability to leverage AI-powered and analytical solutions is key to the digital transformation of procurement. This includes deriving procurement insights from master data sources, using advanced analytics or AI tools, to quickly make educated purchasing decisions.
Underlying data availability and quality will determine how a company can leverage digital analytics and drive cutting-edge solutions. The current IT landscape—including ERP and business warehouse systems—and expected improvements should form the backbone of future digital applications.
Existing system landscape
Digital analytics
Collaboration
Performance
management
People
Processes
Organization
Sustainability
Risk
Speed
Quality
Innovation
Savings
Savings
Innovation
Quality
Speed
Risk
Sustainability
Organization
Processes
People
Performance
management
Collaboration
Processes are still the primary allocation of procurement resources in most organizations—and there is great potential for optimization. Many manual tasks can be automated and made “bionic,” with bots, digital coaches, and data supporting the human buyer.
Organizations must assess strengths and weaknesses to address learning needs—especially as deep content knowledge is increasingly important for category managers. Skill sets vary from operational to strategic positions, and digitization skills need to be augmented.
Organizations are increasingly integrating procurement performance management and ERP systems. Digital solutions include integrated management tools, linking to financial accounts, and customer satisfaction questionnaires.
As the supply chain grows more complex, supplier collaboration becomes more important in end-to-end processes—to enable delivery on the respective value dimensions. Live supplier feedback and collaborative innovation sharing can help.
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How can procurement improve a company’s overall performance?