Traditionally, procurement was considered a cost center but, of late, procurement has become a strategic business function within enterprises. As a result, the role of a Chief Procurement Officer (CPO) is evolving from reducing costs to maintaining supply chain resilience in addition to deriving higher value from their sourcing and procurement function. The priority is not new; however, varied supply chain disruptions are bringing it to the forefront. Further, companies are engaging domain experts and investing in AI, automation, and analytics to generate higher value from the procurement function. They are increasingly leveraging service provider support to parallelly transform people, processes, and technology. As a result, procurement business process transformation deals have grown by over 15% between March 2022 and March 2023.
Both demand- and supply-side trends are covered in Avasant’s Procurement Business Process Transformation 2023 Market Insights™ and Procurement Business Process Transformation 2023 RadarView™, respectively. These reports present a comprehensive study of procurement business process transformation service providers and closely examine the market leaders, innovators, disruptors, and challengers. They also provide a view into key market trends and developments impacting the procurement services space.
We evaluated service providers across three dimensions: practice maturity, domain ecosystem, and investments and innovation. Of the 20 providers, we recognized 15 that brought the most value to the market during the past 12 months.
The report recognizes service providers in four categories:
Figure 1 below from the full report illustrates these categories:
“Procurement function is no longer a cost center; it has evolved as a strategic value lever for enterprises,” said Avasant Partner Shobhit Patnaik. “For true value addition, CPOs are focusing on supply chain resilience, digital adoption, domain expertise, and ESG initiatives.”
The reports provide several findings, including the following:
“To meet CPO priorities, enterprises need to digitalize processes and improve both domain and digital skills of sourcing professionals,” said Ritika Nijhawan, senior research analyst with Avasant. “Service providers with dedicated category managers, digital tools, regional expertise, and ESG services have an edge in supporting CPO priorities.”
The Procurement Business Process Transformation 2023 RadarView features detailed profiles of 15 service providers, along with their solutions, offerings, and experience in assisting enterprises in their procurement services.
This Research Byte is a brief overview of the Procurement Business Process Transformation 2023 Market Insights™ and Procurement Business Process Transformation 2023 RadarView™ (click for pricing).
Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.
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