Are Fully Digital Supply Chains the Future?

How Supply Chain Management is Currently Done

The PwC survey polled over 800 procurement professionals from 64 countries, with over 50% representing industrial companies. According to survey responses, cost reduction and supplier sourcing are the first and second strategic priorities of digitalization plans.

Likewise, the increasing transparency requirements by government regulators and customers are driving digital transformation projects.  

Unfortunately, process/data readiness and digital maturity are significant hurdles in the procurement transformation. Shortages, inflation, price increases, and product delays are just a few of the factors interrupting supply chains.

Consequently, procurement professionals must navigate these uncertainties. Here are some reasons why digital supply chain software is the answer.

Promote Better Data Management and Efficiency

“A company’s value stream starts with its purchases. It is, therefore, necessary to have a rigorous and complete control of all physical and digital assets.”- PwC survey. 

Procurement departments must have procedures and infrastructure to optimize data management. The flow and volume of data and information are expanding exponentially. Multiple information providers and users (buyers, suppliers, internal clients, third parties, and more) can create unstructured data. 

Additional drivers for procurement digitalization include agility, greater control, and operation efficiency. Therefore, developing digital procurement platforms to store, organize, and maintain supply chain information is urgent. But more importantly, procurement operations require standard processes (digital platforms) to leverage data into sourcing improvements.   

According to the PwC survey, only 10% of the respondents had a high digitalization rate. Of that group, approximately 82% created value with their procurement data. The ability to leverage data is linked to digital maturity. Unfortunately, over 55% of the respondents reported struggles with fully utilizing procurement data in their decision-making.  

Improved Risk Management

Improved risk management and compliance are vital needs in digitalization projects. But more importantly, procurement professionals want greater transparency across supply chains and sourcing.

Nearly 60% of survey respondents ranked process efficiency and simplicity as primary goals, followed by transparency and traceability. Transparency of supply chains and sources enables procurement professionals to react quickly to risks and foster a long-term transformation. 

Meet ESG and CSR Goals

The goal of digital procurement processes is to meet Corporate, Social Responsibility (CSR) metrics. Businesses are addressing their carbon footprint as part of CSR. Over 60% of the companies surveyed plan to implement ESG and CSR goals in their operations and reporting.  

For example, supply chains contribute roughly 80% of company emissions. Laying carbon-management accounting processes into procurement operations centralizes information into a single source.

Accordingly, procurement professionals can review and rank suppliers based on their ESG performance. Mounting pressure to meet CSR targets from government regulators and customers will drive increased improvements in carbon-emission reductions from procurement operations.  

Win-Win for All 

Digital procurement platforms improve data utilization and provide long-term value creation. New technologies such as Requis are essential in managing growing volumes of data into real-time information and distributing it to users. In addition, Requis’ platform enables companies to add sustainability performance and carbon footprint management as part of RFQs. 

Through digital supply-chain processes, procurement professionals have the tools to achieve ESG and CSR goals, improve operational performance, and reduce business risks.

New procurement platforms are energizing procurement teams to take control of their data and process it in efficient and productive ways that were not possible just 5 years ago.

Schedule a Digital Supply Chain Software Demo Today

Requis is excited to guide procurement teams in the adoption of the next generation of cloud procurement platforms. To learn more about our digital platform and how we can simplify your procurement efforts, please contact us here.