Long-Term Investment in Procurement Technology Lays the Foundation for Gen AI Adoption
The Hackett Group's latest research reveals that Digital World Class® procurement organizations are poised for significant gains with the adoption of generative AI (Gen AI). These top-performing organizations can expect a 54% increase in staff productivity and a 47% reduction in process costs. Despite industry-wide cost escalations, Digital World Class® procurement organizations operate at 21% lower costs than peers and deliver 2.5 times greater procurement return on investment.
Key advantages include managing 21% more spend, achieving two times higher spend cost reduction savings, and a 59% reduction in maverick buying. They also demonstrate superior operational excellence with 23% shorter sourcing cycle times and 76% lower process costs per order. These organizations invest 15% of their operating budget in technology, which is 32% higher than typical organizations, reflecting a significant increase from five years ago.
La ricerca più recente del Hackett Group rivela che le organizzazioni di approvvigionamento Digital World Class® sono pronte per guadagni significativi con l'adozione dell'AI generativa (Gen AI). Queste organizzazioni di alto livello possono aspettarsi un aumento del 54% della produttività del personale e una riduzione del 47% dei costi di processo. Nonostante gli aumenti dei costi a livello di settore, le organizzazioni di approvvigionamento Digital World Class® operano con costi inferiori del 21% rispetto ai colleghi e garantiscono un ritorno sugli investimenti di approvvigionamento 2,5 volte maggiore.
I principali vantaggi includono la gestione di 21% in più di spesa, il raggiungimento di risparmi sui costi di spesa due volte superiori e una riduzione del 59% degli acquisti non autorizzati. Dimostrano anche un'eccellenza operativa superiore con tempi di ciclo di approvvigionamento più brevi del 23% e costi di processo per ordine inferiori del 76%. Queste organizzazioni investono il 15% del loro budget operativo in tecnologia, che è superiore del 32% rispetto alle organizzazioni tipiche, riflettendo un aumento significativo rispetto a cinque anni fa.
La última investigación del Hackett Group revela que las organizaciones de aprovisionamiento Digital World Class® están listas para obtener ganancias significativas con la adopción de la IA generativa (Gen AI). Estas organizaciones de alto rendimiento pueden esperar un aumento del 54% en la productividad del personal y una reducción del 47% en los costos de proceso. A pesar de los aumentos de costos en toda la industria, las organizaciones de aprovisionamiento Digital World Class® operan con costos un 21% más bajos que sus pares y ofrecen un retorno sobre la inversión en aprovisionamiento 2,5 veces mayor.
Las principales ventajas incluyen gestionar un 21% más de gasto, lograr ahorros en la reducción de costos que son el doble de los habituales y una reducción del 59% en la compra no autorizada. También demuestran una excelencia operativa superior con un 23% menos de tiempo en el ciclo de aprovisionamiento y costos de proceso por pedido un 76% más bajos. Estas organizaciones invierten el 15% de su presupuesto operativo en tecnología, lo que es un 32% más alto que las organizaciones típicas, reflejando un aumento significativo desde hace cinco años.
해켓 그룹의 최신 연구에 따르면, 디지털 월드 클래스(Digital World Class®) 조달 조직이 생성 AI(Generative AI)의 채택으로 중대한 이익을 실현할 준비가 되어 있습니다. 이러한 최고의 성과를 내는 조직은 직원 생산성 54% 증가와 프로세스 비용 47% 절감을 기대할 수 있습니다. 업계 전반의 비용 증가에도 불구하고, 디지털 월드 클래스 조달 조직은 동종 업계보다 21% 낮은 비용으로 운영되며, 조달 투자 수익 2.5배 증가를 제공합니다.
주요 장점으로는 21% 더 많은 지출 관리, 지출 비용 절감이 두 배로 높음, 비공식 구매 59% 감소가 있습니다. 이들은 또한 소싱 사이클 시간 23% 단축 및 주문 당 프로세스 비용 76% 절감으로 뛰어난 운영 우수성을 보여줍니다. 이러한 조직은 운영 예산의 15%를 기술에 투자하며, 이는 일반 조직보다 32% 높음, 5년 전보다 크게 증가한 것입니다.
Les dernières recherches du Hackett Group révèlent que les organisations d'approvisionnement Digital World Class® sont prêtes pour des gains significatifs grâce à l'adoption de l'IA générative (Gen AI). Ces organisations performantes peuvent s'attendre à une augmentation de 54% de la productivité du personnel et une réduction de 47% des coûts de processus. Malgré l'escalade des coûts dans l'industrie, les organisations d'approvisionnement Digital World Class® fonctionnent à 21% de coûts en moins que leurs pairs et offrent un retour sur investissement en approvisionnement 2,5 fois plus élevé.
Les principaux avantages incluent la gestion de 21% de dépenses en plus, l'atteinte de réductions de coûts d'achat deux fois plus élevées et une réduction de 59% des achats imprévus. Elles démontrent également une excellence opérationnelle supérieure avec 23% de temps de cycle d'approvisionnement en moins et 76% de coûts de processus par commande en moins. Ces organisations investissent 15% de leur budget opérationnel dans la technologie, soit 32% de plus que les organisations typiques, ce qui reflète une augmentation significative par rapport à il y a cinq ans.
Die neuesten Forschungen der Hackett Group zeigen, dass Digital World Class® Beschaffungsorganisationen gut positioniert sind, um durch die Einführung von generativer KI (Gen AI) erhebliche Gewinne zu erzielen. Diese leistungsstarken Organisationen können mit einem 54%igen Anstieg der Mitarbeitereffizienz und einer 47%igen Reduzierung der Prozesskosten rechnen. Trotz der branchenweiten Kostensteigerungen arbeiten Digital World Class® Beschaffungsorganisationen 21% kostengünstiger als ihre Wettbewerber und erzielen 2,5-mal höhere Renditen auf Investitionen im Beschaffungsbereich.
Wichtige Vorteile umfassen die Verwaltung von 21% mehr Ausgaben, das Erreichen von doppelt so hohen Einsparungen bei den Ausgaben und eine 59%ige Reduzierung von nicht genehmigten Käufen. Sie zeigen auch überlegene operative Exzellenz mit 23% kürzeren Beschaffungskostenzyklen und 76% niedrigeren Prozesskosten pro Auftrag. Diese Organisationen investieren 15% ihres Betriebsbudgets in Technologie, was 32% höher ist als bei typischen Organisationen und einen signifikanten Anstieg im Vergleich zu vor fünf Jahren widerspiegelt.
- Digital World Class® procurement organizations operate at 21% lower cost compared to peers
- Procurement return on investment is 2.5 times greater than peers, up from 2.2 times in 2019
- Manage 21% more spend and achieve two times higher spend cost reduction savings
- 59% reduction in maverick buying
- 23% shorter sourcing cycle times and 76% lower process costs per order
- 15% of operating budget invested in technology, 32% higher than typical organizations
- 3.7 times fewer suppliers per $1 billion in spend, reducing complexity and enhancing control
- Procurement operating costs for typical companies have continued to escalate due to ongoing supply disruptions, inflation, and new compliance requirements
Insights
The adoption of generative AI in procurement marks a significant technological leap. Digital World Class® organizations are poised to leverage this technology effectively, thanks to their consistent investment in process optimization and strategic tech. The projected
These organizations'
The strategic value of this technological investment is evident in the 2.5 times greater procurement ROI compared to peers. As Gen AI capabilities evolve, we can expect even more sophisticated applications in areas like predictive analytics, supplier risk management and automated negotiation strategies, further widening the performance gap between Digital World Class® organizations and their competitors.
The financial implications of Digital World Class® procurement practices are substantial. Operating at
Notably, these procurement leaders manage
Investors should note that while the initial investment in technology (
Latest Report Shows Digital World Class® Procurement Organizations Will Experience
Procurement operating costs for typical companies have continued to escalate in the face of ongoing supply disruptions, inflation and new compliance requirements. However, due to their consistent focus on process optimization and strategic technology investment over the last several years, top-performing procurement organizations are better prepared to harness Gen AI than their peers.
The research shows that despite the high operating costs prevalent in the industry, Digital World Class® procurement organizations excel at cost optimization, operating at a
Furthermore, Digital World Class® procurement organizations deliver superior business outcomes, with procurement return on investment being 2.5 times greater than that of their peers – up from 2.2 times greater in 2019. They also manage
They have
In terms of operational excellence, Digital World Class® procurement organizations have
Digital World Class® procurement organizations not only focus on technology but also on enabling strategic activities. They invest
These organizations also manage their supplier base more effectively than ever before, with 3.7 times fewer suppliers per
Amy Hillcox, senior research director at The Hackett Group, said: “Generative AI is revolutionizing the procurement landscape by enabling unprecedented levels of automation and insight. Digital World Class® procurement organizations have laid a robust technological foundation, highlighting consistent improvements in cost-efficiency, staff allocation and technological investment. Our research indicates that embracing Gen AI will further enhance these aspects, leading to faster and more informed decision-making and enabling procurement teams to deliver even greater strategic value and innovation.”
Principal Chris Sawchuk added, “Digital World Class® procurement organizations are not merely tech-savvy – they represent holistic excellence by integrating superior data management, strategic partnerships and top-tier talent optimization. This comprehensive approach has allowed them to realize rapid and profound improvements across all metrics from 2019 to 2024. Their enhanced focus on technology and data analytics leads to sharper insights and faster decision-making, providing a substantial competitive edge in a fast-evolving market.”
The Hackett Group defines Digital World Class® procurement organizations as those that achieve top-decile performance in business value and operational excellence. The 2024 research includes benchmarks, performance studies and advisory insights from global companies engaged in procurement transformation. A public version of the report, “Insights From Top Performers: How to Level Up With Gen AI,” is available for free, with registration, at: https://go.poweredbyhackett.com/dwcproc2406nr.
About The Hackett Group
The Hackett Group, Inc. (NASDAQ: HCKT) is an IP-based, Gen AI strategic consulting and executive advisory firm that enables Digital World Class® performance. Using AI XPLR™ – our AI assessment platform – our experienced professionals guide organizations to harness the power of Gen AI to digitally transform their operations and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.
Our expertise is grounded in unparalleled best practices insights from benchmarking the world’s leading businesses – including
For more information on The Hackett Group, visit https://www.thehackettgroup.com/ or email media@thehackettgroup.com.
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Source: The Hackett Group, Inc.
FAQ
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