Findings of a DPW survey point to AI adoption set to grow 187% in the next year, but just 20% of teams currently use AI at scale.

DPW Amsterdam, one of the procurement and supply chain sector’s leading events, has released the findings of its new 10X Procurement study. The study is a collaboration between DPW and Professor Remko van Hoek from the University of Arkansas. Its research draws insights from over 200 global procurement leaders, and claims to have found a “staggering disconnect” between the appetite for digital transformation among procurement teams and their ability to actually execute those transformations.

As businesses grapple with rapid changes in the market, the findings underscore the urgent need for procurement to evolve and drive meaningful change.

“Technology is advancing at the speed of light – but procurement leaders are struggling to drive change at the same rate,” said Matthias Gutzmann, Founder of DPW. “There’s a disconnect between the ambition to transform and the readiness to make it happen.” Gutzmann adds that the 10X Procurement study demonstrates that “while procurement is on the brink of something groundbreaking, teams are ill-equipped to harness that potential.” 

DPW: preparing procurement to capitalise on technological advancement

DPW aims to provide procurement teams with the insights, technology, and partnerships needed to “think and act ten times bigger than their current capacity.”

Key findings from the DPW 10X Procurement Study include:

1. Skills Gap Widens the Divide Between Vision and Execution

Procurement technology providers are sounding the alarm on a widening skills gap, citing a 30-35% shortfall in critical capabilities such as change management, openness to AI, and digital acumen, threatening the success of procurement’s digital transformation efforts.

2. Tech Adoption is Rising, But Underutilization Hampers Progress  

Despite AI making waves across industries, just 20% of respondents are adopting or scaling AI within their procurement functions, and procurement processes remain only 50% automated on average. This lack of adoption represents a significant missed opportunity to streamline operations and drive innovation, putting procurement at risk of falling behind on the digital transformation movement.

3. 2025 Set to Drive a Digital Revolution in Procurement

Looking ahead, respondents predict a dramatic 187% increase in AI adoption and scaling in 2025 across procurement processes and tech stacks. This points to a shift from operational technologies to more strategic, relationship-driven solutions.

4. Culture Lag Holding Back Digital Transformation Despite Clear Roadmaps

While many procurement teams boast clear roadmaps for digital transformation, DPW’s report finds that the culture required to embrace and sustain this change remains underdeveloped. Respondents rated their organisations’ readiness to drive the kind of sweeping transformations required to stay competitive as low.

5. New Playbook Requires Agility and Innovation Over Cost Savings

A large number of respondents were found to put cost savings before other objectives. In contrast, organisations that emphasise agility and resilience consistently see better results than their peers. This underscores the urgent need for procurement to redefine success metrics and shift away from rigid cost-saving goals toward more innovative, relationship-driven strategies that drive more resilience.

The findings of the study will be highlighted at the DPW Amsterdam 2024 conference currently underway in the Netherlands, featuring sessions led by industry experts designed to empower procurement teams and technology innovators in navigating the path toward 10X Procurement

Global research and advisory giants Deloitte and DPW has announced a partnership to bring procurement innovation to organisations.

Deloitte and DPW has announced a partnership to bring procurement innovation to organisations.

Under the terms of this strategic alliance, DPW LABS, the consulting arm of DPW, and Deloitte will work together to refine the boundaries of innovation in procurement.

From problem and strategy definition to proof of concept and deployment, through the DPW LABS innovation capabilities and digital ecosystem and Deloitte’s global transformation capabilities, the move allows for impact to be delivered at scale.

Deloitte is a global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services.

The firm, which is a member of the Big Four in professional services, currently has about 330,000 employees in more than 150 countries and territories. 

Founded in 2019, DPW stands as a global leader in procurement innovation. DPW LABS empowers organisations to identify and seize collaborative innovation opportunities with DPW’s line-up of pioneering startups, scale-ups, and tech innovation experts.

Herman Knevel, co-founder and co-CEO at DPW, said: “We are excited about this strategic partnership with Deloitte.

“This partnership will enable us to join forces and make tech work, expand and complement our impact at global scale.” 

Michiel Junge, partner of sourcing and procurement at Deloitte, added: “We are united in our mission to make procurement awesome.

“The partnership with DPW will enable our clients to tap into DPW’s capabilities and ecosystem and define their procurement future.”

The move comes after DPW welcomed over 1,250 procurement professionals to Amsterdam for its annual conference.

DPW Amsterdam has quickly made its name as a hub of innovation and collaboration. It is one of the biggest and most influential tech events in procurement and supply chain.

CPOstrategy travels to the Netherlands to soak in the atmosphere of one of the world’s biggest and most influential tech events in procurement and supply chain – DPW Amsterdam 2023

“You are the reason why DPW exists.

“It’s been my mission from day one to break procurement out of its silo and create what I call the end-to-end ecosystem and that is you.”

Digital Procurement World (DPW) Founder Matthias Gutzmann’s first address to the crowd gathered before the main stage had a clear tone of appreciation.

The rise of DPW Amsterdam

Today, DPW Amsterdam is one of the world’s biggest and most influential tech events in procurement and supply chain. Its exponential rise in a relatively short space of time is undeniable. Its story began with a frustrated Gutzmann having discovered a lack of procurement conferences to showcase his previous employer. This led to Gutzmann finding a gap in the market and set about solving the issue himself. He left his job in New York, moved into his parent’s house and invested all his savings to launch DPW. Months later, DPW’s launch conference in September 2019 welcomed 400 industry leaders while being praised from across procurement. Under the watch of Gutzmann and co-CEO Herman Knevel, DPW’s influence and pull has only grown since.

This year’s event was located at the historic former stock exchange building, the Beurs van Berlage. Built in 1896, the building breathes character and history. Its architecture and rich past, alongside its central Amsterdam location, showcases its sense of place and being.

DPW Conference, Amsterdam 2023

Innovation

DPW Amsterdam has quickly made its name as a hub of innovation and collaboration. This year, more than 1,250 procurement professionals gathered to connect, learn and innovate, while over 2,500 virtual attendees watched along at home. The buzz and hum of chatter was audible, the sense of excitement evident. And the attendees were certainly in for a treat. This year’s theme was “Make Tech Work” which focused on turning digital aspirations into a reality. There was a deep dive into discussions surrounding AI and machine learning in procurement, digital transformation strategies, sustainable procurement, supplier collaboration, risk management as well as innovation and disruption. It was all centred on ensuring the vision of digital procurement happens now and how organisations can be challenged to deliver results now instead of only concepts and theories.

Speakers across the two days included renowned experts and visionaries including the likes of Dr. Elouise Epstein, Partner at Kearney, Yossi Sheffi, Director of Massachusetts Institute of Technology and author David Rogers, among dozens more. Sarah Barnes-Humphrey led superb virtual coverage of the event and allowed those unable to make it to still feel a part of such an important conference in the procurement calendar. There were book signings from Sheffi and Atif Rafiq, eye-catching tech innovations showcased on stage and even an appearance from F1 legend and Haas Formula One team principal Guenther Steiner.

DPW's founder Matthias Gutzmann

Digital future

To sum up, in comedian and host of DPW Amsterdam Andrew Moskos’ opening speech he reflected on procurement’s evolution and transformation. “Procurement used to be boring but now we’re all rockstars. We run the company, we’re in the c-suite, we run ESG, sustainability, risk, and 80% of the spend of a company goes through us.”

Change is here and procurement holds the cards. Let’s Make Tech Work.