The Deloitte Global CPO Survey 2016 is based on a poll of 324 procurement leaders from 33 countries. There has been much talk recently of Industry 4.0 and digital integration in manufacturing. But the report found that investment in digital technologies such as cloud and analytics looks set to leg behind comparative levels in other sectors, such as retail and financial services, over the next 12 months.
James Gregson, EMEA head of sourcing and procurement at Deloitte, said that despite some areas increasing spending, a lack of direction around digital procurement is something that spans several sectors.
“Careful work needs to be done first as 60 per cent of CPOs admit they do not have a clear digital strategy,” he warned.
“The key will be to get this strategy in place first, so the right technology is being used in the right way. Done correctly, a digital strategy can improve accuracy, speed and outcomes. This is potentially a double edged sword – digital can either reinvigorate or replace procurement’s role. It’s up to the CPO to set the strategy and lead the change, or risk being left behind.”
One area of good news for manufacturing was the report’s findings around internal working relationships. It found that CPOs within the industry often have a better relationship with their CEO than those in other sectors. As a result they typically play a more active role in key decision-making and have a better understanding of business requirements.
WATCH: Is procurement at a digital tipping point?
