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.