The digital evolution of the procurement and supply chain market plays a key role in the generation of value for companies and enhances competitiveness.
However, this process is still not widely understood by businesses, most of which still rely on overly centralized systems of management. These are the conclusions drawn from the results of a study conducted by IFABER.
The digital evolution of the procurement and supply chain market plays a key role in the generation of value for companies and enhances competitiveness. However, this process is still not widely understood by businesses, most of which still rely on overly centralized systems of management - indeed, around 90% of companies surveyed declared low levels of integration between business management and purchasing tools. Accordingly, the potential of the stock of information gained by purchasing divisions through big data, analytics and real-time information remains largely unexploited, despite the fact that this could help to create additional value for these companies.
These are the results that have emerged from a survey conducted by IFABER, a leading name in the procurement and supply chain markets. The findings were presented by Ludovica Lardera, CEO of IFABER, during the Procurement Executive Circle 2015 (PEC) event at the UniCredit Tower in Milan. She is convinced that the digitalization of procurement processes is set to assume an increasingly important role in the competitiveness of Italian companies, marking the evolution of a strategic function for businesses.
Lardera revealed that Italian purchasing departments are aware of the importance of the process of supply chain digitalization - indeed, so much so that this is cited as being among the main priorities for the procurement and supply chain sector for the coming years, along with the optimization of working capital and the development of relationships with suppliers. This awareness, however, only corresponds with a limited degree of digital evolution within purchasing divisions, and indeed, only 15% of Chief Procurement Officers (CPO) have a full set of the latest IT tools at their disposal. Incorporating innovation into Italian purchasing divisions is crucial for the future, particularly in light of the increasingly direct role that these business functions play in generating value (according to 41% of respondents) and in achieving business objectives: indeed, 56% of CPOs are entrusted with strategic internal objectives (for example, ensuring adequate levels of service, supporting expansion into new geographical areas, providing product innovation support).
"The picture that emerges from the research carried out on procurement and supply chain divisions in companies has confirmed that the digital evolution of this sector is key to creating value for businesses, enabling the transformation of processes and business models," declared Ludovica Lardera. "At IFABER, we are dedicated to driving the evolution of this strategic sector, thanks to our ability to offer innovative solutions to our clients, but above all by establishing ourselves as a key partner for companies, offering value-added services developed through our deep knowledge of the real needs of buyers and sellers."
Lardera asks whether the organizational structure of a company is capable of defining business strategy. Too often, companies are tied to strict internal systems of logic, or rely on external suppliers. The results of the survey demonstrated that 19% of these suppliers claim to work within structures where staff are given managerial responsibilities to support strategy. With regard to knowledge of the supply chain, many companies do not have a firm understanding of what lies beyond the boundaries of their business: they find themselves bound to the same strategic supplier they have always relied on, without being able to find a new strategic supplier.
In Italy, IFABER is engaged in promoting the digital transformation of the procurement and supply chain sectors. In an economic environment that remains delicate, the number of clients on the company's platform has doubled, courtesy of an effective business strategy, the continuous innovation of its solutions and the capacity of these to meet the needs of clients, as well as the evolution of IFABER's own skills.
For the next few years, the company resolves to contribute to the evolution of the purchasing culture in our country, in collaboration with key stakeholders, from the academic world in particular, promoting advanced training programs such as the Masters in Procurement Management at the University of Rome Tor Vergata, and supporting research in the field, such as the Supply Chain Finance initiative supported by the Polytechnic University of Milan. IFABER also organizes events dedicated to this industry and its major players, such as the User Experience Forum, created to serve as an incubator for ideas that in turn can help to evolve and innovate the IFABER e-procurement platform together with the company's customer communities.
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ChannelBiz - IFABER: purchasing departments must lean towards a culture of digital sharing
“At IFABER, we are dedicated to driving the evolution of this strategic sector, thanks to our ability to offer innovative solutions to our clients, but above all by establishing ourselves as a key partner for companies, offering value-added services developed through our deep knowledge of the real needs of buyers and sellers."