By fully embracing digital transformation, procurement organizations can achieve higher levels of efficiency, effectiveness, and customer experience, including 25% lower costs, 2.5x greater ROI on procurement, and more, according to a study by The Hackett Group, Inc.
âFor decades, the Hackett Group benchmarks have been the gold standard by which most global companies measure world-class performance in procurement and other business services. Today, with the growing impact of digital transformation, The Hackett Group is raising the bar even higher by moving to a world-class digital measurement standard. Our new research details how high-tech organizations are reaching new levels of peak performance, âsaid Erik Dorr, vice president of research for the Hackett group.
âThe results are impressive. But, the result is simple. Our research provides empirical evidence of the impact of digital transformation, âsays Dorr. âFor years, companies have made incremental improvements, optimized their processes, reduced costs and reduced transactional labor to achieve world-class performance. However, new technologies are enabling many companies to achieve levels of operational excellence and digital world-class business value. And they can get much of that advantage by layering digital technology on top of their existing systems, rather than embarking on large-scale infrastructure changes. “
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- World-class digital procurement organizations now operate at a cost 25% lower than typical procurement organizations (i.e. peers) and at a cost of 6% lower than enterprise organizations. traditional world-class supply, despite greater spending on technology.
- Technology plays a key role in driving these results, with world-class digital procurement organizations spending 20% ââmore on technology than their peers.
- World-class digital organizations are 85% more likely to be seen by stakeholders as taking a proactive approach to mitigating procurement risks and 19% more likely to be seen as a valued business partner.