Supplier performance management software and predictive analytics are the technology solutions most likely to be implemented by procurement functions over the next two years, according to Xchanging’s 2015 Global Procurement Study.
The study, which surveyed 830 procurement decision-makers across the UK, Europe and North America, found that savings tracking (77 per cent) and spend analytics (76 per cent) technologies are the most widely implemented – not surprisingly in a tough economic climate.
Over half of the companies responding also already have automation (68 per cent), reporting dashboards (68 per cent), contract management (67 per cent), supplier performance (64 per cent), market intelligence (60 per cent), e-sourcing (59 per cent), predictive analytics (54 per cent) and Internet of Things (54 per cent) technologies in place.
Predictive analytics and the Internet of Things are expected to be the most revolutionary technologies for supply chain operations, with eight in 10 respondents stating they will have an impact, and nearly a quarter believing they will have a major impact.
“Predictive analytics will drive a far more strategic approach to sourcing, for example, enabling hedging on the price of raw materials to become a daily part of the procurement process, as well as creating further opportunities for automation to increase accuracy and efficiency. Procurement leaders ignore technology-driven progress at their peril. If they don’t seize the opportunity, they will quickly fall behind their competitors,” a statement on the survey findings said.