By Kaitlynn Sommers, senior director analyst, Gartner Supply Chain
Looking ahead, innovation is key for procurement strategies. Chief procurement officers (CPOs) need to act now to meet long-term goals.
Many CPOs are exploring new technologies like AI, predictive analytics, and conversational AI. These tools can boost growth and increase efficiency within organizations.
According to a recent survey by Gartner, CPOs have three main tech priorities: data and analytics, AI and generative AI, and upgrading existing technologies.
1. Investing in Data and Analytics Technologies
Data and analytics are at the heart of modern procurement. In fact, 72% of CPOs see it as a top priority, with 27% ranking it first. This highlights the need for data-driven insights in decision-making.
Effective data and analytics help procurement leaders make smart choices, optimize supply chains, and spot market trends. However, many still struggle with data quality issues.
To make the most of their data, procurement leaders should focus on improving data quality and setting clear governance policies. Identifying high-value use cases will help direct their efforts, allowing them to adopt analytics tools that truly add value.
2. Embracing AI and Generative AI Technologies
AI and generative AI are also top concerns for CPOs. Sixty-eight percent see these as key areas, while 24% rank it as their highest priority. Interestingly, only 14% have fully implemented these technologies, showing significant room for growth.
AI can automate routine tasks, enhance decision-making, and provide predictive insights. This streamlining can lead to cost savings and improved supplier relationships. As AI evolves, it presents new ways for procurement teams to stand out.
CPOs should explore various AI use cases that align with their business goals. Conducting pilot projects can help test solutions before wider rollout, allowing for quicker adjustments as needed.
3. Optimizing Current Technologies
With 60% of CPOs focusing on upgrading existing technologies, it’s clear that getting the most from current investments is vital.
By optimizing existing tools, procurement teams can boost efficiency and maintain competitiveness. This ensures that they can deliver better results and allocate resources for new tech investments.
To enhance current technologies, leaders should review their tech portfolio for any gaps. Collaborating with vendors and engaging users for feedback can help improve and maximize technology use.
By embracing these tech trends, CPOs can better navigate the changing digital landscape and add more value for their organizations.
About the author:
Kaitlynn Sommers works in sourcing and procurement within Gartner’s Supply Chain team. She advises CPOs and procurement tech leaders on digital transformation.
SC
MR
Check out this related article: Unlocking the Future: What OpenAI’s New Agent Means for Robotics and You
Source link