PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PwC Digital Procurement Survey 3rd edition 2020-2021
Contents
Survey results 8 On behalf of the PwC Partners and
employees who have been working hard
Purchasing department priorities
during the pandemic, I am proud to present
Overview of purchasing department digital transformation
the third edition of the PwC Digital
Digital use cases and development prospects Procurement Survey. This year, we received
Key success factors for digital transformation in more than 400 responses in almost
Isabelle Carradine
procurement 30 countries. I would like to wholeheartedly
PwC France
Partner
Strategic Supply
thank the more than 100 French purchasing
Impact of Covid-19 28 Management departments who took the time to answer
our questions.
Sector analysis 35 France remains ambitious and continues to
look for ways to accelerate digitisation
practices, with a particular focus on risk
management, the importance of which has
been highlighted during the health crisis.
Authors
Alexandre Roux Philippe Gaurois Florian Tue
Consultant Senior Manager Consultant
France France France
|2| |1|
Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd edition Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd edition
Key findings from the survey
Digital transformation remains a major challenge, although the current context is Making optimum use of digital solutions generates significant performance gains within
1 prompting purchasing departments to refocus on their core operations:
• Process digitisation remains the third strategic priority, and is regarded as a driver of agility
4 purchasing organisations:
• On average, 79% of purchasing departments say that they have seen improvements in
and resilience. business performance and organisational benefits as a result of deploying a digital solution.
This is especially true in companies where the solution is strongly taken up by users and its
• Cost reduction and supplier sourcing are the top two priorities. They enable companies to
features are used in full.
meet their objectives of securing external resources and improving financial performance,
which have been particularly exacerbated by the health crisis.
Among the key success factors for digital transformation projects, adapting procurement
5
• The Covid-19 crisis has led to a change in strategy by purchasing departments: more than
60% of them have reconsidered their priorities in response to the crisis. Cost reduction and processes to the chosen solution and investing heavily in change management are
risk management were favoured in the short term while, in the medium term, process identified as major factors, while the choice of technology or integrator are less
digitisation and supplier sourcing were reprioritised in order to prepare for the future. important:
• Purchasing departments share a common view on the crucial role of business process
transformation in the success of a digital deployment project. Time spent on process
The digital transformation of procurement processes has been steadily progressing over
redesign and change management will bring more value to a digital transformation project
the years and is taking shape more quickly than expected, while continuing to be
2 supported by substantial investment:
• The level of increase in digitisation has exceeded 2017 targets, demonstrating purchasing
than the technical aspects of choosing the solution and the integrator.
departments’ commitment to digital transformation projects, as well as the growing role of
digital technology in the purchasing function. This trend is set to intensify over the next two
years, thanks to significant investment by companies of all sizes.
The digital transformation of procurement practices can be seen in the use of
fundamental use cases, and offers various short-term development perspectives:
3 • Certain digital use cases – including procure-to-pay, source-to-contract, and data analysis
and management – have become the basis for the digitisation of the purchasing function.
They are the most commonly used today and represent the highest investment intentions
for the next two years.
• Use cases that are currently not widely used – such as smart sourcing/relocation sourcing,
risk management and virtual purchasing assistants – are expected to gain traction, with the
number of users within purchasing departments set to double over the next two years.
Such use cases will enable them to respond to the new challenges of agility and resilience.
• The Covid-19 crisis has tested the resilience of both the digital tools available to
purchasing departments, and digital transformation roadmaps. European roadmaps have
been consolidated, while in Africa, two-year investment intentions have been significantly
redistributed both upwards and downwards, in direct correlation with the digital use cases
that were lacking during the crisis.
|2| |3|
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd edition
PwC Digital Procurement Survey
3rd edition
Business sectors
400+ participants
43%
Services Industry
3
57%
major global regions
Europe – Africa – Middle East
Company profiles
29 countries represented
Some of the most representative countries in their region:
Very large companies:
revenue of over €10 billion
and more than 5,000 employees
24% 22% Small companies:
revenue of less than €50 million
and/or fewer than 250 employees
• Europe: France, Turkey, Sweden, Germany, Spain
• Africa: Kenya, Uganda, Zambia
Large companies:
revenue of between €1.5 and Medium-sized companies:
• Middle East: United Arab Emirates, Qatar €10 billion and/or more than 18% 36% revenue of between €50 million
5,000 employees and €1.5 billion and/or more than
Other countries: Austria, Bahrain, Belgium, Côte d’Ivoire, Denmark, Egypt, 250 employees
Gabon, Lebanon, Luxembourg, Morocco, Netherlands, Nigeria, Norway,
Oman, Saudi Arabia, South Africa, Switzerland, Tanzania, United Kingdom
Participant profiles
12 themes covered Including:
• Strategic priorities of purchasing departments
Other (general management,
finance departments)
Supply Chain/Operations Managers 9%
11%
23% CPO (Chief Procurement Officer)
• Digital roadmaps and future investment Purchasing IS Manager 5%
• Impact of Covid-19 on the digitisation of procurement processes
• Digital use cases and perceived value Category Purchaser 12%
40% Procurement Manager
Responses received between March and September 2020
|4| |5|
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd edition
1
Survey results
|6| |7|
Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd edition Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd edition
Digital transformation remains a strategic priority, although the
current context is prompting purchasing departments to
refocus on cost issues and supplier sourcing
3
rd
Digital transformation is the third strategic priority Despite the crisis, digital transformation
for purchasing departments remains a fundamental trend
Top three strategic priorities for purchasing departments Changes in purchasing departments' strategic priorities between 2019 and 2020
Consolidation and simplification, mass 43%
#1
Cost reduction
purchasing, supplier portfolio downsizing, cost 22%
control, financial gains, productivity
Cost reduction 43%
Identification and qualification of new
Supplier sourcing, 24%
purchasing strategies, selection of new vendors,
industrial partnerships, locations, supplier SRM 20%
#2
relationship management (SRM)
Supplier sourcing and management 24% Digital 12%
Process digitisation, operational excellence,
transformation 17%
digital innovation, process automation
#3
Anticipation of both internal and external risks, 9%
Risk management
Process digitisation 12% management of economic instability, supplier
risks, supply chain risk
20%
Attractiveness, retention, upskilling and Talent acquisition 5%
human capital management and development 12%
In response to the current challenges of improving financial performance and increasing supply chain
security, purchasing departments are refocusing on their core operations by reprioritising cost Strategic sourcing, open innovation, 4%
reduction and supplier sourcing. co-innovation, supplier partnership Innovation
7%
However, process digitisation remains a key concern, particularly as we are seeing a shift towards
remote working practices.
Integration of social and ethical issues,
sustainable procurement 3%
CSR
2%
0 10 20 30 40 50
2020 2019
Digital transformation remains a strategic priority: not only does it increase resilience and enable
companies to react to the economic context, it is also a driver of agility and a source of
competitiveness in the longer term.
|8| |9|
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd edition
The digital transformation of procurement processes is
steadily progressing and has exceeded 2017 forecasts
The digital transformation of procurement processes – both Procurement process automation has exceeded 2017
transactional and strategic – continues to progress forecasts
The projects undertaken by purchasing departments in all industries are showing results year after Procurement process automation rates have exceeded the targets set by the 2017 Digital
year, and demonstrate the importance placed on automating procurement processes. But there is Procurement Survey, demonstrating the purchasing function's strong commitment to companies'
still a long way to go to take full advantage of digitisation. digital transformation.
Rate of automation of procurement processes
Rate of process automation:
-15pts -12pts To be achieved by 2022
48% Achieved
50%
46% (2017 projections)
-12pts
40% Automation of transactional processes
36% 36%
31% 2017 projections vs 2020 achievement
30%
24% 55%
Automation of strategic process
50%
20% 50% 48% 2017 projections vs 2020 achievement
46%
45%
45%
10%
39%
40%
40%
0% 36%
36%
36%
2017(1) 2018 2019(2) 2020 35%
35%
31%
Processus transactionnels Processus stratégiques 30%
Transactional processes: 30%
From purchase ordering to payment (procure-to-pay), e-invoicing 24%
25%
25%
2017 (1) 2018 2019 (2) 2020 2021 2022
Strategic processes: 20%
From strategic sourcing to contractualisation (tendering process, contract management,
supplier relationship management, risk anticipation) 15%
(1)
2017 2018 2019 (2) 2020 2021 2022
Process automation rate:
(1) PwC Digital Procurement Survey 2017/(2) PwC Digital Procurement Survey 2019
Proportion of processes partially or fully automated by a digital solution
(1) PwC Digital Procurement Survey 2017/(2) PwC Digital Procurement Survey 2019
| 10 | | 11 |
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd edition
Significant investment planned to support the digital
transformation of purchasing departments
Investment forecasts for the digital transformation of purchasing departments over
the next two years
Small companies €270k
revenue of less than €50 million and/or
fewer than 250 employees
Two-year
average
Medium-sized companies €420k investment
revenue of between forecasts per
€50 million and €1.5 billion company, all
and/or more than 250 employees sectors
combined
Large companies €900k
revenue of between €1.5 and
€10 billion and/or more
€1,200k
than 5,000 employees
Very large companies
revenue of over €10 billionand more €2,500k
than 5,000 employees
These ambitious investment forecasts offer support for the implementation of purchasing
departments’ digital roadmaps. They show the expected tangible return on investment and therefore,
the importance given to the digital transformation of the purchasing function.
| 12 | | 13 |
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd edition
The survey highlights three groups of digital use cases for which
we propose a different development strategy
Estimated growth in the number of users over the next two years
Number of businesses using the use case currently/number of businesses using the use case currently and
Purchasing departments' digital roadmaps highlight three groups of use cases based on their stage
are planning to prioritise the use case over the next two years
of development. We recommend implementing different development strategies in order to continue
the digital transformation.
3 - High-potential
use cases
200% PwC recommendations
Smart sourcing,
relocation sourcing 1 – Fundamental use cases
Virtual purchasing assistant Development matrix Procure-to-pay (P2P), source-to-contract (S2C), Extend
Experiment for digital use cases and data analysis tools are the use cases most
frequently used by purchasing departments • Continue to develop best practices and
150%
today, and which represent the highest harmonise processes
Risk management investment intentions. They form the basis of
the purchasing department's digital • Increase the number of users and the
transformation. purchasing scope
100%
Automation of 1 - Fundamental
administrative tasks Data analysis and visualisation use cases
Collaborative portal
2 – Developing use cases
They are already used by a large number, but Confirm
not the majority, of purchasing departments.
50% Marketplaces P2P digitisation and Nevertheless, they remain the focus of • Measure the value contributed by the
Supply chain traceability S2C digitisation
e-invoicing significant investments. use case
and supplier knowledge
• Accelerate the development of the most
promising use cases
2 - Developing Confirm Extend
use cases • Roll out across the organisation
0%
0% 10% 20% 30% 40% 50% 60% 70%
Current usage of the use case: 3 – High-potential use cases
% of companies who say the use case is one of their top three most used use cases These are the use cases that offer the strongest Experiment
development potential over the next two years
compared to their current use. They respond to • Test use cases
>35% the new challenges of supply chain agility and
25% Prioritisation of the use case over the next two years: resilience, and should see their number of users • Confirm the ROI
PwC's vision: the digital journey of tomorrow’s purchaser can
be illustrated using high-potential use cases
By 2025, the purchaser’s journey will be supported by numerous high-potential digital use cases to Industry Lab: Located at PwC's premises in Neuilly-sur-Seine, France, the Industry Lab is an
facilitate day-to-day tasks and boost the added value of the purchasing function. The results of the immersive space dedicated to Industry 4.0 that provides technological demonstrators and use cases
survey confirm PwC’s vision of procurement process digitisation. PwC is always on the hunt for relating to industrial processes and technological innovations. This infographic shows an example of
innovative technology, and helps its clients identify and deploy digital innovations. a purchaser’s journey, presented at the lab during a digital immersion session.
ng
cki
t ra
ty
bili
i na
sta
Su
nd
g a ent
rcin em
n sou anag
atio k m Co
Pri loc r ris ntr
ce Re pplie ac
f or su ta
ec na
ast lyti
ing cs
n
sca ce
aud en
Fr lli g
s i nte
ces
Pro
Vir
t
ass ual p
ista urc
nt ha
sin
g
Ta
il s
ing ue
p en rc a log
sou cat
da
u to
ma art on
ic
tio
n Sm ctr
Ele
n
sc a
ost li very
oc De
nt
sig
De
Relocation sourcing and Process intelligence:
supplier risk management:
Tail spend automation: Optimise procure-to-pay and
Map high-risk suppliers (e.g., accounts payable processes by Virtual purchasing assistant:
Automate the purchasing based on financial situation, using data mining and advanced
department's management Automate communications
dependency, location, market data analysis to identify
process for low-value tenders to between suppliers and accounts
tensions, CSR criteria) and bottlenecks and establish action
allow purchasers to focus on payable teams, enabling them to
identify potential alternatives plans.
strategic suppliers and tenders. track the status of their invoice
through the use of the
directly without having to
"AGIR-PwC" app for the digital
contact the purchaser
management of risks and
relocation sourcing.
| 16 | | 17 |
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd editionDespite its still limited uptake by purchasing departments,
blockchain technology represents a big development
opportunity
Perception of Blockchain technology by purchasing departments in 2020
A concrete example of the use of Blockchain
in a purchasing organisation:
13% Being tested in
their organisation
Supply chain security:
Opportunity identified, but no Blockchain tools help to secure supply chains and maintain sovereignty in a context of
appropriate offering available interdependence. They can also be used to:
50% on the market • give each stakeholder the possibility to transparently monitor supply chain flows, including
37% complex supply chains such as those for medical devices, while increasing the overall
responsiveness of the supply chain;
No added value perceived
for their function • create a platform to certify the origin of components of products or services;
• generate a digital ID for each of the different stakeholders in the supply chain;
• raw up a map of n-tier suppliers to protect the company's sovereignty in the event of a
d
Blockchain technology is not currently widely used by purchasing departments, however, it
systemic crisis.
represents a good development opportunity. Many companies are considering certain applications of
the technology – for example in the areas of supply chain traceability or traceability of quality-related
events – in order to improve risk management.
The 2019 survey found that purchasing departments were already exploring this technology:
Expectations
Blockchain
Industry 4.0 Data analytics
Peak of inflated expectations
Automation S2P tools
Artificial
intelligence
Maturity
Appropriation
Trough of disillusionment
Arrival on the market of a new technology Time
Source: PwC Digital Procurement survey 2019
| 18 | | 19 |
PwC
PwCDigital
Digital Procurement Survey –– 33rdrd edition
Procurement Survey edition PwC Digital Procurement Survey – 3rd editionThe higher the take-up of digital technology, the greater the
benefits companies see on purchasing department performance
2 8
in 10 purchasing departments in 10 purchasing departments
say that they are making optimum, long-lasting use of have noticed a positive impact on their organisation and
their digital solutions (22%) performance (79%). The perceived value of these positive
impacts is directly correlated with the company’s profile.
Companies can be divided into three profiles based on the rate of user take-up and feature Perception of positive impacts by company profile:
use:
% of companies having noticed an improvement in their performance following the deployment of a digital solution
% of companies having noticed an improvement in their performance following the deployment of a digital solution
Between 40% and 60% Between 60% and 80% 80% to 90% >90%
Profile 1 (P1) - Optimal deployment
Between 40% and 60% Between 60% and 80% 80% to 90% >90%
Profile
The 1 (P1) - Optimal
purchasing deployment
organisation has rolled out a large number of digital solutions
Improved purchasing
The purchasing organisation has rolled out a large number of digital solutions department performance
Improved purchasing
Proportion of companies* User take-up rate Feature use rate and competitiveness
department performance
and competitiveness P3 P2 P1
22%
Proportion of companies* >75%
User take-up rate >75%
Feature use rate
P3 P2 P1
22% >75% >75%
Simplified
Profile 2 (P2) - Mid-deployment processes
Simplified
Profile
The2purchasing
(P2) - Mid-deployment
organisation is currently rolling out digital solutions processes
The purchasing organisation is currently rolling out digital solutions P3 P2 P1
P3 P2 P1
Proportion of companies* User take-up rate Feature use rate
33%
Proportion of companies* 25 to
User take-up rate75% 25 rate
Feature use to 75% Greater internal
33% 25 to 75% 25 to 75% customer
Greater satisfaction
internal
customer satisfaction
P3 P2 P1
P3 P2 P1
Profile 3 (P3) - Limited deployment
Profile
The 3 (P3) - Limited
purchasing deployment
organisation has begun to roll out digital solutions
The purchasing organisation has begun to roll out digital solutions
Increased team
efficiency
Increased team
Proportion of companies* User take-up rate Feature use rate efficiency
18%
Proportion of companies*Success factors for the digital transformation of the purchasing
function: process adaptation and change management come
out ahead of the choice of technology or integrator
Business process transformation is the main success factor in
Success factors for the digital transformation of the purchasing function: process
adaptation and change management come out ahead of the choice of technology or digital solution deployment projects
integrator:
0% 20% 40% 60%
Adaptation of existing processes
to digital solutions 54%
Purchasing departments share a common view on the
Support for crucial role of business process transformation in
Investment in change management 54% the transformation of the success of a digital deployment project.
Involvement of internal stakeholders purchasing practices Time spent on process redesign and change
(business players, sponsors, etc.) 44% management will bring more value to a digital
transformation project than the technical aspects of
choosing the solution and the integrator.
Choice of vendor 30% Choice of digital solution
Digital transformation can also be seen as a driver of
and integrator
Choice of integrator/project business process transformation.
29%
management support
Consideration of corporate culture 26%
Supplier enrolment 21%
In the 2019 Digital Procurement
Survey, the main obstacles
preventing companies with a high
IT skills
rate of digitisation from implementing
The success of a digital deployment project depends on the
technologies were skills, closely
followed by change management and
Change
management 19%
18%
sponsorship. Sponsorship
company's ability to standardise and implement processes.
#1
The 2020 and 2019 findings confirm
the crucial importance of business 16%
#2
process transformation, and in
Purchasing IS Manager for a large automotive company particular change management, in a
#3
digital transformation project. These
are factors for success, but can also
become sources of failure.
| 22 | | 23 |
PwC Digital Procurement Survey – 3rd edition PwC
PwCDigital
Digital Procurement Survey –– 33rdrd edition
Procurement Survey editionTo go a step further, PwC’s Digital Procurement Maturity Model
can be used as a starting point to build a digital roadmap
aligned with your purchasing function's development objectives
PwC’s Digital Procurement Maturity Model
PwC has developed a tool to evaluate
purchasing department's digital maturity.
It looks at 8 different aspects to provide Advanced
an assessment of the level of process • Regarded by the company as a
strategic partner
digitisation within purchasing Mature
• Purchasing category
management optimised overall
departments, which can then be used • Proactive supplier development
to refine their roadmaps. • SRM programme in place programme with integrated
CSR programme
• Frequent use of supply levers
In development • Ongoing review of the supplier
• Highly automated systems
pool
• Contract templates available
• Product-oriented electronically • Fully automated contract
cross-functional teams process
• Very efficient operations
• Purchasing considered a • Advanced data and market
Aware strategic function • Processes are automated and analysis to support decision
exceptions automatically making
• Focus on total cost of ownership passed on to users
• Basic S2P practices streamlined • Integrated S2P • Completely automated AP
• Frequent use of 3-way
Beginner • Purchasing department • Contract templates, electronic
processes
matching
systematically involved in a signatures and digitised • All invoices received
• Considered a back office • “NO PO - No Pay” policy in
limited scope of purchases delegation of authority electronically
transactional function place, PR also required
• Procurement process still very • Systematic involvement of • Comprehensive supplier risk
• Limited systems and data • 360-degree view of supplier
inconsistent across the rest of purchasing in the supplier life management solution
availability data
the purchasing category scope cycle (selection, supplier pool, • Invoice indexing automated
• Purchasing policies (contractual, approval, etc.) • Preventive controls built into
• Delegation of authority is defined using AI
validation, processes) lack platforms
and consistent across the group • Clear separation of duties • Automatic cash flow forecasting
harmonisation • Shared and integrated supplier
• Collaborative supplier portal • No duplicate suppliers based on AI and past
• Decentralised operation database performance
• Partial digitisation of downstream • Invoice integration via an
• Local practices and consistency • Marketplace
processes (orders, invoicing, integrated digital platform • Integration with digital tax tools
of varied processes • Little administrative work
etc.) and regulatory requirements
• High percentage of
• Partially shared and integrated • Fully integrated technological
time-consuming manual and
supplier database ecosystem
administrative tasks
• Manual control environment
• Collaboration and manual
exchanges with suppliers • Contract database
• Very little use of digitised S2C
and P2P processes (invoicing,
orders, communication, etc.)
| 24 | | 25 |
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd edition2 Impact of Covid-19
| 26 | | 27 |
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd editionPurchasing departments are adapting their strategy and
reconsidering their priorities to respond to the crisis in the
short and medium term
2/3 2
purchasing departments have reconsidered their nd Risk management ranked as second most used
priorities following the Covid-19 crisis digital use case in response to the crisis
Percentage of respondents who have Most common use cases in a non-crisis environment
reconsidered their priorities as a result of the Purchasing departments' strategic
Covid-19 crisis priorities have been affected by the
Covid-19 crisis
Fundamental use
#1 P2P digitisation & e-invoicing
Priorities The short-term financial impact has led
case
maintained to greater priority being given to cost
reduction, while the need for agility in an
(the most used and
attracting the most
#2 Source-to-contract digitisation
uncertain environment has pushed investments)
62% 38% companies to capitalise on risk
management, digital transformation and #3 Data analysis
sourcing.
Companies are aiming to build their
Priorities finances back up before continuing their Most common use cases during the Covid-19 crisis
reconsidered operations in a more agile way so that
they are ready to face future crises.
#1 P2P digitisation & e-invoicing
High-potential use
>50% of purchasing departments that have reconsidered their priorities following the
Covid-19 crisis want to promote risk management and cost reduction within their
organisation
cases
(potential for strong
#2 Risk management
growth in use)
Changes in purchasing
department priorities are
Reconsideration of purchasing department's strategic
priorities following
Reconsideration the Covid-19
of purchasing departments’crisis:
strategic priorities following the Covid-19 crisis: #3 Data analysis
consistent with their
0% 20% 40% 60%
company’s strategy
The Covid-19 crisis has tested the resilience of the digital tools available to purchasing
According to the PwC CFO Risk management 54%
departments
survey*, which gauged the
Cost reduction 53% Procure-to-pay continues to form the basis of The use case that saw the largest increase in
views of Chief Financial Officers
following the Covid-19 crisis, purchasing department digitisation and has use during the Covid-19 crisis is risk
Digital transformation 28%
cost control is the main priority been the most widely used use case during management. The ability of purchasing
being adopted (for 82% of Supplier sourcing, SRM 26% the crisis. Data management also remains departments to provide solutions to immediate
respondents). crucial in normal circumstances as well as in risks has been put to the test, underlining the
CFOs also believe that Talent acquisition and development 8% times of crisis. importance of implementing a digital
developing alternative supply transformation that increases the versatility of
CSR 5%
More exceptional use cases have highlighted
sources will be their priority for purchasing practices.
the advantages of having a high capacity for
the supply chain. Innovation 4% digital resilience.
* PwC’s COVID-19 CFO Pulse Survey (April 2020)
| 28 | | 29 |
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd editionCovid-19 has consolidated European roadmaps
and accelerated them in Africa
57%
of respondents in the region are
Europe
The roadmaps of European purchasing
departments appear to have been largely
unaffected by the crisis, in terms of both
investment and roadmap content. The
Covid-19 crisis has consolidated their
64%
of the region's respondents say
their investment intentions were
Africa
African purchasing departments have been
more heavily impacted by Covid-19:
investment intentions have been disrupted,
and certain use cases that were lacking
during the crisis have been reprioritised in
digital priorities for the next two years. company roadmaps. The Covid-19 crisis has
maintaining their investment disrupted (up or down) by the revealed possible digital weaknesses, thereby
Covid-19 crisis accelerating the digital transformation
planned over the next two years.
Investment
Changes in investment in Europe following the Covid-19 crisis Investment
0% 25% 50% 75% 100% Changes in investment in Africa following the Covid-19 crisis
30% 0% 25% 50% 75% 100%
Investment reduced
57% 35% Investment
Investment maintained 13% increased
Investment reduced 35%
Investment increased Investment 29%
maintained
Digital roadmaps Digital roadmaps
High-potential use cases are those for which there is the greatest correlation between the lack of The lack of digital capabilities during the Covid-19 crisis was felt most acutely in Africa. There
these uses during the crisis and the resulting prioritisation over the next two years. This is therefore a greater correlation between the use cases that were seen to be lacking during the
correlation is less significant for fundamental use cases, for which the crisis has simply reinforced Covid-19 crisis and the digital use cases being prioritised over the next two years, showing that the
their prioritisation. crisis has accelerated companies' roadmaps.
Use case being prioritised over the next 2 years Uses cases lacking during the Covid-19 crisis
Use cases being prioritised over the next 2 years Use cases lacking during the Covid-19 crisis
37% -13 pts 35% -6 pts
29% +4 pts
24% 26% -6 pts 25% -3 pts 25%
21% 22% 21%
20% 18% -3 pts
+7 pts
+5 pts
vs Europe +2 pts
Fundamental use cases Developing High-potential use cases
Fundamental use cases Developing High-potential use cases
use cases use cases
Fundamental use cases High-potential use cases Developing use cases
P2P digitisation & e-invoicing, Smart sourcing and relocation sourcing, risk management, Automation of administrative tasks, marketplaces, collaborative portals, supply chain traceability and supplier knowledge
S2C digitisation, data analysis and visualisation virtual purchasing assistants
| 30 | | 31 |
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd editionFind out more
3
Purchasing issues and practices can vary widely from one industry to
another. That’s why we wanted to study the digital characteristics of
purchasing departments in the industries most represented in this
survey*, so as to benchmark them within their sector and observe
what is specific about them.
Close-up on industries
Industry
Manufacturing
Energy & Utilities
Automotive Services
Retail &
Pharmaceuticals Distribution
& Healthcare
Banking, Insurance &
Financial Services
Technology, Software &
Telecoms
* Industries not analysed: Aerospace, Defence & Security; Construction & Infrastructure; Consumer
Goods; Chemicals & Metallurgy; Entertainment, Communications & Media; Agri-Food; Public Sector;
Business Services; and Transport & Logistics
| 32 | | 33 |
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd editionManufacturing businesses use digital transformation to increase their
Manufacturing
visibility across their supply chain
Strategic priorities of purchasing departments Digital transformation performance
% of businesses rolling out their digital solutions in an
Industry Manufacturing optimal way % of businesses seeing
an improvement in their
High user take-up rate* High feature use rate** average performance
Industry 31% 26% 79%
Manufacturing 26% 24% 84%
2 1 3 4 2 1 3 4
Supplier Cost Digital Innovation Supplier Cost Risk Digital
* solution used by more than 75% of targeted users
sourcing, reduction transformation sourcing, reduction management transformation ** solution used in an efficient way thanks to use of more than 75% of its features
SRM SRM
Digital roadmap While cost reduction is the top Although manufacturing companies seem to have more difficulty deploying digital solutions than their
priority for purchasing counterparts in industry, they are able to effectively leverage the added value of digital solutions.
departments in manufacturing Manufacturing companies are in agreement that adapting processes in line with digital solutions is the primary
Industry Manufacturing companies, digital success factor for their digitisation projects, which suggests that this was lacking previously. When integrating
transformation is not widely with complex processes and business practices, the interface of a digital solution is of paramount
Current most used digital use cases
perceived as a strategic importance. It is therefore key to gain an understanding of these processes before launching any digital
1 P2P digitisation & e-invoicing P2P digitisation & e-invoicing priority, and will therefore see a transformation project.
more moderate level of
2 Data analysis and visualisation S2C digitisation
investment than the average
3 S2C digitisation Supply chain traceability for industry over the next two
years.
Key success factors for digital transformation
Use cases receiving the most investment Manufacturing companies
1 Data analysis and visualisation Automation of administrative tasks mainly use digital tools for
transactional purposes (P2P 90%
2 S2C digitisation S2C digitisation Industry
and S2P). 76%
3 Automation of administrative tasks Data analysis and visualisation 80% Manufacturing
Supply chain traceability
70%
seems to be a common use 59%
High-potential use cases case for manufacturing 60% 53%
50%
1 Smart sourcing, relocation sourcing Virtual purchasing assistant companies, as a response to 50% 43%
42%
the need to (i) secure
2 Automation of administrative tasks Marketplaces 40% 34%
significant supply risks, and 30% 28% 26%
3 Risk management Data analysis and visualisation (ii) know who their suppliers 30% 26% 24% 23%
are outside of tier 1. 20%
11%
Average investment over 2 years 10%
€1,075k €880k 0%
Adaptation of Involvement of Investment in Choice of Consideration Choice of Supplier
existing internal change integrator/ of corporate vendor enrolment
processes to stakeholders management project culture
digital solutions (business management
players, support
sponsors, etc.)
Base: 54 respondents
| 34 | | 35 |
PwC Digital Procurement Survey – 3rd edition PwC Digital Procurement Survey – 3rd editionModerate use of digital technology despite excellent performance
Energy & Utilities
from rollout of solutions
Strategic priorities of purchasing departments Digital transformation performance
% of businesses rolling out their digital solutions in an
optimal way % of businesses seeing
Industry Energy & Utilities
an improvement in their
High user take-up rate* High feature use rate** average performance
Industry 31% 26% 79%
2 1 3 4 2 1 3 4 Energy & Utilities 50% 40% 68%
Supplier Cost Digital Innovation Supplier Cost Risk Digital
sourcing, reduction transformation sourcing, reduction management transformation * solution used by more than 75% of targeted users
SRM SRM ** solution used in an efficient way thanks to use of more than 75% of its features
The procure-to-pay process is The Energy & Utilities industry has shown excellent performance in the rollout of digital solutions, both
Digital roadmap the use case targeted as a in terms of user take-up and the use of technical features. It is one of the leading industries for the
priority by purchasing digital transformation of purchasing departments. Bringing stakeholders on board is seen as the main
departments in the energy success factor for digital transformation projects, which explains a high rate of take-up by business
Industry Energy & Utilities industry. It is the most players within the company. However, the perceived performance gains remain lower than for its
Current most used digital use cases widespread today and accounts counterparts in the industry sector, which can be explained by a less advanced usage of digital
P2P digitisation & e-invoicing P2P digitisation & e-invoicing for enough investment for it to solutions.
1
be considered a high potential
2 Data analysis and visualisation Data analysis and visualisation use case.
3 S2C digitisation S2C digitisation
This fundamental use case
appears to present fewer
Use cases receiving the most investment prospects for development in Key success factors for digital transformation
1 Data analysis and visualisation Data analysis and visualisation the industry sector.
2 S2C digitisation P2P digitisation & e-invoicing The wide range of purchases
potentially makes it more Industry
3 Automation of administrative tasks S2C digitisation 70% 66%
complicated to implement a Energy & Utilities
59%
digital P2P solution for the 60% 56%
53%
High-potential use cases energy industry: less than half of
companies regularly use one, 50%
1 Smart sourcing, relocation sourcing Smart sourcing, relocation sourcing 43%
compared to two thirds in the
2 Automation of administrative tasks Automation of administrative tasks 40% 34%
industry sector.
3 Risk management P2P digitisation & e-invoicing 30% 31% 28%
31%
28% 28%
30% 26%
23%
Average investment over 2 years 20%
€1,075k €950k 10%
0%
Adaptation of Involvement of Investment in Choice of Consideration Choice of Supplier
existing internal change integrator/ of corporate vendor enrolment
processes to stakeholders management project culture
digital solutions (business management
players, support
sponsors, etc.)
Base: 42 respondents
| 36 | | 37 |
Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd edition Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd editionA well-controlled digital transformation focused on suppliers to
Automotive
secure the supply chain
Strategic priorities of purchasing departments Digital transformation performance
% of businesses rolling out their digital solutions in an
optimal way % of businesses seeing
Industry Automotive an improvement in their
High user take-up rate* High feature use rate** average performance
Industry 31% 26% 79%
Automotive 47% 41% 85%
2 1 3 4 2 1 3 3
Supplier Cost Digital Innovation Supplier Cost Risk Digital * solution used by more than 75% of targeted users
sourcing, reduction transformation sourcing, reduction management transformation
SRM SRM ** solution used in an efficient way thanks to use of more than 75% of its features
Digital roadmap Purchasing departments in the
The Automotive industry is successfully optimising the rollout and use of its digital tools and maximising
automotive industry are rolling performance gains in its operations. It is performing better than its counterparts in the industry sector.
out and maximising their digital
Industry Automotive It bears highlighting that bringing suppliers on board is the main factor for the success of digital transformation
solutions to ensure traceability projects. It would appear that efforts made to involve suppliers and encourage them to use the digital tools are
Current most used digital use cases in their supply chains and bearing fruit, resulting in performance gains.
consolidate their knowledge of
1 P2P digitisation & e-invoicing P2P digitisation & e-invoicing
their suppliers.
2 Data analysis and visualisation S2C digitisation
This digital use case is one of
3 S2C digitisation Supply chain traceability the most-used today, and
presents considerable
prospects for development. Key success factors for digital transformation
Use cases receiving the most investment
1 Data analysis and visualisation Data analysis and visualisation Digital transformation is used to
2 S2C digitisation S2C digitisation address procurement
challenges specific to the 70% Industry
3 Automation of administrative tasks Supply chain traceability automotive industry, in terms of Automotive
59%
60%
managing relationships with 53% 53% 53%
High-potential use cases suppliers at tier 1 level and 47%
50%
below, and the associated risks. 43%
1 Smart sourcing, relocation sourcing Data analysis and visualisation
40%
2 Automation of administrative tasks Supply chain traceability 33%
30% 28%
3 Risk management S2C digitisation 30% 26%
23%
20%
20%
Average investment over 2 years
€1,075k €1,200k 10% 7% 7%
0%
Adaptation of Involvement of Investment in Choice of Consideration Choice of Supplier
existing internal change integrator/ of corporate vendor enrolment
processes to stakeholders management project culture
digital solutions (business management
players, support
sponsors, etc.)
Base: 27 respondents
| 38 | | 39 |
Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd edition Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd editionDigital transformation to support securing complex and critical
Pharmaceuticals & Healthcare
purchases in a highly standardised environment
Strategic priorities of purchasing departments Digital transformation performance
% of businesses rolling out their digital solutions in an
optimal way % of businesses seeing
Industry Pharmaceuticals & Healthcare an improvement in their
High user take-up rate* High feature use rate** average performance
Industry 31% 26% 79%
Pharmaceuticals &
23% 23% 77%
2 1 3 4 2 1 3 3 Healthcare
Supplier Cost Digital Innovation Supplier Cost Risk Skills development * solution used by more than 75% of targeted users
sourcing, reduction transformation sourcing, reduction management and acquisition
SRM SRM ** solution used in an efficient way thanks to use of more than 75% of its features
Although the user take-up rate is lower for purchasing departments in the Pharmaceuticals industry than for
Digital roadmap Data analysis and supply chain
their counterparts in the industry sector, the performance gains are almost equivalent. The potential to improve
traceability are the use cases performance is promising, provided that investments are increased considerably.
accounting for the most
Take-up by and upskilling in digital solutions for employees should therefore be a priority in the coming years for
Industry Pharmaceuticals & Healthcare significant investments and purchasing departments in this industry. There is a widespread observation among players in the
with the highest development Pharmaceuticals & Healthcare industry that performance gains are primarily generated by business process
Current most used digital use cases
potential over the next two transformation.
1 P2P digitisation & e-invoicing P2P digitisation & e-invoicing years. They help manage
2 Data analysis and visualisation S2C digitisation complex and technical
3 S2C digitisation Data analysis and visualisation purchasing categories and
meet standards specific to the
Use cases receiving the most investment Pharmaceuticals & Healthcare Key success factors for digital transformation
industry. In addition, they
1 Data analysis and visualisation Data analysis and visualisation
contribute to securing the
2 S2C digitisation S2C digitisation supply chain, an issue whose
90%
3 Automation of administrative tasks Supply chain traceability critical importance was made Industry
78%
even clearer by the Covid-19 80% Pharmaceuticals &
crisis. Healthcare
High-potential use cases 70%
It bears highlighting that skills 59%
1 Smart sourcing, relocation sourcing Supply chain traceability 60% 53% 56%
2 Automation of administrative tasks Risk management development and acquisition is 50%
positioned as the third priority 50% 43% 44%
3 Risk management Data analysis and visualisation of purchasing departments in 40%
the industry, demonstrating 30% 28%
Average investment over 2 years 30% 26% 23%
the importance of talent 22%
management over the long 17%
€1,075k €515k 20%
11%
term, both in terms of hiring
10%
and retaining employees and
supporting their upskilling. 0%
Adaptation of Involvement of Investment in Choice of Consideration of Choice of Supplier
existing internal change integrator/ corporate vendor enrolment
processes to stakeholders management project culture
digital solutions (business management
players, support
sponsors, etc.)
Base: 25 respondents
| 40 | | 41 |
Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd edition Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd editionDigital transformation to support purchasing as a source of
Retail & Distribution
competitive advantages
Strategic priorities of purchasing departments Digital transformation performance
% of businesses rolling out their digital solutions in an
Service sector Retail & Distribution optimal way % of businesses seeing
an improvement in their
High user take-up rate* High feature use rate** average performance
Service sector 37% 34% 78%
Retail & Distribution
2 1 3 4 2 1 3 4 21% 37% 81%
Supplier Cost Digital Risk Supplier Cost Digital Innovation * solution used by more than 75% of targeted users
sourcing, reduction transformation management sourcing, reduction transformation
** solution used in an efficient way thanks to use of more than 75% of its features
SRM SRM
Digital roadmap Digital tools are mainly used for The industry appears to be experiencing difficulties reaching high levels of take-up of digital solutions by
data management, and this employees. An essential part of digital transformation is the accompanying transformation of business
trend is set to intensify thanks processes, particularly through the promotion of upskilling and changes in practices for employees.
Service sector Retail & Distribution to significant targeted The importance of integrating digital solutions may also be underestimated, explaining why the user take-up
Current most used digital use cases investments. rate is significantly below average.
1 P2P digitisation & e-invoicing P2P digitisation & e-invoicing The use and monitoring of data
2 S2C digitisation Data analysis and visualisation can generate competitive
advantages in Retail &
3 Collaborative portal Collaborative portal Distribution in terms of sales, of
course, but also earlier in the
chain at the purchasing stage. Key success factors for digital transformation
Use cases receiving the most investment
1 P2P digitisation & e-invoicing Data analysis and visualisation In addition, supply chain
2 Data analysis and visualisation P2P digitisation & e-invoicing traceability is a high-potential 60% 56% 56% 56% 56%
digital use case. It is a way to Service sector
3 Risk management Risk management Retail & Distribution
make transactions more reliable 50% 46% 45%
and secure supply while also
High-potential use cases taking into account CSR issues 40% 38% 38%
1 Risk management Risk management (e.g., respect for the
environment, fight against 30% 28%
2 Virtual purchasing assistant Supply chain traceability
undeclared work, etc.), which 21%
3 Data analysis and visualisation Automation of administrative tasks represent a growing concern for 19% 18% 19%
20%
customers. 13%
Average investment over 2 years 10%
€820k €1,470k 0%
Adaptation of Involvement of Investment in Choice of Consideration Choice of Supplier
existing internal change integrator/ of corporate vendor enrolment
processes to stakeholders management project culture
digital solutions (business management
players, support
sponsors, etc.)
Base: 29 respondents
| 42 | | 43 |
Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd edition Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd editionA digital transformation dynamic driven by the goal to manage risks
Banking, Insurance & Financial Services in a competitive environment
Strategic priorities of purchasing departments Digital transformation performance
% of businesses rolling out their digital solutions in an
optimal way % of businesses seeing
Service sector Banking, Insurance & Financial Services
an improvement in their
High user take-up rate* High feature use rate** average performance
Service sector 37% 34% 78%
2 1 3 4 2 1 3 3 Retail & Distribution 47% 41% 74%
Supplier Cost Digital Risk Risk Cost Digital Supplier
sourcing, reduction transformation management management reduction transformation sourcing, SRM * solution used by more than 75% of targeted users
SRM ** solution used in an efficient way thanks to use of more than 75% of its features
Digital roadmap The Banking, Insurance &
Financial services industry is The rapid development of fintech and the need for agility to meet customer requirements have led businesses in
the industry to implement their digital transformation more quickly than their counterparts in the service sector,
catching up on the use of
Service sector Banking, Insurance, Financial which explains why they are a step ahead with the deployment of digital solutions.
collaborative portals, which are
Services already well integrated by other
Current most used digital use cases service sector players. Such
1 P2P digitisation & e-invoicing P2P digitisation & e-invoicing tools help streamline
interactions between
2 S2C digitisation S2C digitisation
purchasing advisors, purchasing
3 Collaborative portal Data analysis and visualisation Key success factors for digital transformation
departments and suppliers.
With data security and
Use cases receiving the most investment cybersecurity having become
1 P2P digitisation & e-invoicing Risk management key issues for the industry, risk
management is now the second 60% 56% 56% Service sector
2 Data analysis and visualisation P2P digitisation & e-invoicing
strategic priority. This use case 52% Banking, Insurance &
3 Risk management Collaborative portal is set to see the highest levels 50% Financial Services
46% 45%
of investment and the most
High-potential use cases rapid development. 38% 37%
40% 37%
1 Risk management Risk management The arrival of new “digital 33%
30%
Virtual purchasing assistant Smart sourcing, native” competitors on the 30% 28%
2 market is accelerating the
Relocation sourcing 21% 22%
industry's digital transformation 18%
3 Data analysis and visualisation Collaborative portal 20%
and inciting companies to
rethink their approach to 10%
Average investment over 2 years business processes.
€820k €860k 0%
Involvement of Adaptation of Investment in Choice of Choice of Consideration of Supplier
internal existing change integrator/ vendor corporate enrolment
stakeholders processes to management project culture
(business digital management
players, solutions support
sponsors, etc.)
Base: 45 respondents
| 44 | | 45 |
Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd edition Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd editionPurchasing departments are concentrating on the digital
Technology, Software & Telecoms
transformation of their transactional processes
Strategic priorities of purchasing departments Digital transformation performance
% of businesses rolling out their digital solutions in an
optimal way % of businesses seeing
Service sector Technology, Software & Telecoms an improvement in their
High user take-up rate* High feature use rate** average performance
Service sector 37% 34% 78%
Technology, Software &
44% 40% 87%
2 1 3 4 2 1 3 4 Telecoms
Supplier Cost Digital Risk Digital Cost Supplier sourcing, Skills
* solution used by more than 75% of targeted users
sourcing, reduction transformation management transformation reduction SRM development and
SRM acquisition ** solution used in an efficient way thanks to use of more than 75% of its features
Digital roadmap One third of respondents said
that digital transformation was The Technology, Software & Telecoms industry is successfully maximising performance gains from digital
transformation. The automation of transactional processes helps generate visible benefits in standardised
the top priority for purchasing
Service sector Technology, Software & purchasing categories with a moderate level of complexity.
departments in the Technology,
Telecoms
Software & Telecoms industry,
Current most used digital use cases tied with cost reduction.
1 P2P digitisation & e-invoicing P2P digitisation & e-invoicing
This trend reflects the digital
2 S2C digitisation Collaborative portal transformation challenges that
3 Collaborative portal Automation of administrative tasks these companies are Key success factors for digital transformation
experiencing on their markets,
beyond purchasing department
Use cases receiving the most investment Service sector
level.
1 P2P digitisation & e-invoicing P2P digitisation & e-invoicing Technology, Software &
The use of digital tools is 60% 56% Telecoms
2 Data analysis and visualisation Collaborative portal
concentrated on automating
3 Risk management Data analysis and visualisation transactional processes, such
50%
45% 46% 45% 45%
as procure-to-pay and 40% 40%
40% 38%
High-potential use cases administrative tasks. These
trends are set to intensify 30%
30% 28%
1 Risk management Virtual purchasing assistant thanks to investments planned 21% 20%
2 Virtual purchasing assistant Supply chain traceability over the next two years, 20%
18%
3 Data analysis and visualisation Data analysis and visualisation particularly virtual purchasing
10%
assistants, which have the 10%
highest growth potential in
Average investment over 2 years terms of number of users. 0%
€820k €1,070k
Adaptation of Involvement of Investment in Choice of Consideration of Choice of Supplier
existing internal change integrator/ corporate vendor enrolment
processes to stakeholders management project culture
digital solutions (business management
players, support
sponsors, etc.)
Base: 29 respondents
| 46 | | 47 |
Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd edition Digital Procurement
PwC Digital ProcurementSurvey
Survey– 2019
3rd editionYou can also read
