Digital Optimization Paves the Way to Strategic Supplier Management
In the age of digital transformation, supplier management and procurement have been late bloomers. But organizations have learned in the past couple of years just how vulnerable global supply chains are to disruption, prompting renewed emphasis on digitizing supplier management and procurement processes. While reducing costs remains a top priority, procurement must be lighter on its feet and smarter in its strategy. Organizations hope digital technology will help them reduce costs, increase efficiency, and improve data collection and analysis, according to a Harvard Business Review Analytic Services global survey of 271 respondents. Respondents were predominantly high-level managers from companies ranging in size from 100 to more than 10,000 employees across all industries. The survey shows that organizations are increasing investment in digital technologies—41% of respondents report that spending has increased this year, and 45% say it will rise over the next year. Respondents expect digital technology to not only increase efficiency and reduce costs but also improve data collection and analysis.