Cost reduction, Supplier sourcing and Digital transformation /PWC, 2022/
As per PwC Global Digital Procurement Survey 2022 Top 3 strategic priorities of Procurement are Cost reduction, Supplier sourcing and Digital transformation.
The necessity of digital has become mandatory to enable procurement departments to navigate a context of rising uncertainty and digitisationof all business exchanges. It helps at both reacting to immediate risks and at generating long-term procurement transformation.
Cost reduction and strategic sourcing are still the spearhead of CPOs, while digital transformation is expanding on roadmaps.
61% of procurement professionals keep focusing on cost reduction (37%) and strategic sourcing (24%) to address the challenging context
Shortages, price increase, inflation, health crisis –procurement departments are strongly focusing on their core objectives within the company in these times of increasing threats on supply chains.
New challenges appeared regarding costs, with the skyrocketing prices of raw materials, and decrease of activity for some sectors calling for drastic cost saving objectives.
Building partnerships with suppliers, reshoring strategic suppliers and reviewing supplier panels to find alternative sources are key initiatives to secure needed supplies.
Digital transformation is strongly anchored in procurement departments’ agendas:
- It is ranked third among the top priorities, with an increase of 6 points compared to 2020
- It is mentioned by half of procurement professionals as being an important priority for coming years.