What are the silent killers of digital procurement transformation?

The series of online meetings Procurement Power Team we started with an intriguing webinar The Silent Killer of Digital Procurement Transformation. Our first guests were experienced procurement professionals Renata Ivaštinović from the company Nabava Plus and Vlado Gazdek from Podravka. 

In order for business organizations to achieve their goals and keep up with the market, they strive for progress and undertake activities that will enable them to be more efficient, competitive and successful. 

Today, progress implies digital transformation. 

Visionaries and initiators of change face a number of problems and obstacles that are not talked about enough due to fear or shame. 

In Ensolva’s online studio, we analyzed the results of independent research and updated the problems encountered by procurement professionals who strive for improvement that implies change. 

Digital transformation is imperative, but it is a long and challenging process 

The survey was conducted globally through expert groups and procurement forums. Interestingly, the survey was completed by as many as 52.2% of procurement directors. Most respondents (82.6%) consider digital transformation necessary. They singled out transparency, time savings and the need for better analysis and reporting as the main priorities. 

Despite the fact that different tools are used and combined in procurement for communication, bidding and data analysis (Excel, e-mail, mail, phone, calculator and papers), the initiators of changes in procurement point out that they encounter many problems. 

As the most common problems (silent killers), procurement professionals single out: 

Lack of support from senior management 

User resistance to change

Complexity of processes and organizational structure

Uneducated users in the field of technology

Expensive specialized procurement solutions 

Respondents believe that investing in employee education and user-friendly solutions would significantly accelerate the process of digital procurement transformation. More than half of respondents believe that digital procurement will progress in the next five years at the latest. 

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The key to progress in procurement is people 

Renata Ivaštinović and Vlado Gazdek shared their experiences from foreign and domestic business organizations with the webinar participants. It was interesting to hear how procurement has evolved over the last two decades. 

According to them, there are always three key elements: time, money and people. “If you have the support of the management, there will be time and there will be money. People are the key link for progress. They are the ones who create new values. New tools and methods cannot be avoided, but they cannot be made without people “, said Vlado Gazdek.