Explanation of Global CPO Survey 2026 findings, interactive presentation after a research conducted with over 300 senior procurement leaders. Digital revolution is coming closer!

1. Procurement: at a digital
tipping point?
The Deloitte Global CPO Survey 2016
Brussels, September 30th 2016
Patrick Vermeulen
Director Deloitte Consulting
Sourcing & Procurement

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Deloitte Supply Chain & Operations
Global expertise in all aspects of the supply chain
Supply Chain & Operations Sourcing & Procurement
 One of the largest supply chain consulting firms in the
world with over 2.000 advisory professionals across the globe
 Able to offer an integrated end-to-end approach helping
clients to improve their supply chain operations and deliver
more value across the business
 Leveraging both deep process, technology and organizational
experience as well as access to a highly ranked range of
capabilities across consulting, financial advisory
services, tax and risk management
 Addressed over $100 billion in sourceable spend in
recent client projects
 Expertise in 250+ spend categories
 140+ category-specific initiatives w/ savings results
exceeding 20%
 Leading implementer of ERP, e-sourcing, and
e-procurement technology
 Leader in e-sourcing on multiple platforms
 Most up-to-date database of category spend benchmarks

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Survey conducted in association with
Odgers Berndtson
From multiple leading organization
spread across 33 countries
With a combined annual turnover of
US$ 4,4 trillion
Covering all major industries
Deloitte Global 2016 CPO Survey
Annual Deloitte survey conducted with 324 of the most senior procurement leaders...
Report available on www.deloitte.com/be/cposurvey2016

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Deloitte Global 2016 CPO Survey
... providing benchmark indicators in the procurement function of today and tomorrow
VALUE
Cost reduction remains the main
focus of procurement
ORGANIZATION
Procurement is increasingly centralized
& strongly linked to the C-Level
RISK
Procurement related risk
increased over the last 12 months
TALENT
Team qualification is becoming
more critical over recent years
INNOVATION
Supplier collaboration & innovation
are turning into a key priorities
TECHNOLOGY
Investments in new technologies
are increasing year on year

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Deloitte Global 2016 CPO Survey
Going forward Procurement is expected to face a major skills and technology gap
Procurement as a bottleneck can lead to worse decisions through:
Business
needs
External
supply
Procurement
Wrong focus – disconnected
with business bottom line
impact & customer experience
Lack of speed – too slow to
respond to rapidly changing
market dynamics
Biases – impacting the ability
to make the right decisions
Insufficient information –
unable to stay on top of all
internal & external market and
category data
Outdated information – lack
of resources to analyze real-
time market info and supplier
performance
Inability to track outcomes
– difficulty tracking the
outcomes and benefits of all its
decisions

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Procurement: at a digital tipping point?
Digital technologies have the potential to help and transform the procurement function
Improving efficiency and user
experience of operational &
transactional procurement activities
Improving procurement value
creation through evidence-based
decision making and increased
accuracy & speed of execution
Digital
technologies
Enabling technologies:
• Self-service portals
• Cloud based solutions
• Mobile
• Social media
• Robotics
Enabling technologies:
• Cognitive analytics
• Internet of things/everything
• Crowdsourcing
• Digital analytics & reporting

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Procurement: at a digital tipping point?
Only 40% of CPOs have a clear digital strategy for Procurement solutions
Procurement
does not have
a clear digital
strategy
60%
Procurement
has a clear
digital strategy
40%
Procurement does not have a
clear digital strategy, but is
exploring options for digital
enhancement
Procurement has a clear
digital strategy aligned to the
needs of the wider
organization
Procurement does not have a
clear digital strategy, not is it
exploring options for digital
enhancement
Procurement has a clear
digital strategy, but this is not
aligned to the wider
organizational needs

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Procurement: at a digital tipping point?
At the same time, CPOs recognize the need to invest in Procurement technologies ...
38%
P-card
Supplier information Mgmt.
30%
37%
Direct Procurement Mgmt.
6%
6%
Electronic data interface
8%
Requisition to pay
Supplier relationship Mgmt.
Innovation Mgmt.
11%
Supplier risk Mgmt.
28%
4%
10%
Procurement Performance Mgmt.
Invoice routing and approval
11%
13%
17%
Electronic payment
Catalogues & Content 19%
24%
eSourcing
Contract Mgmt.
Spend analysis
Key priorities when selecting new
technologies:
• Integration with existing
technology
• Cost
• Highest performing
functionality for required
processes
Procurement technology investments over the next year

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Procurement: at a digital tipping point?
... and leveraging the latest innovative solutions to gain a competitive advantage
TRADITIONAL LEADING
e-procurement
online
catalogues
EDI
spend
reporting
supplier
collaboration
platform
procurement
portal
e-buying
channels
knowledge
exchange (e.g.
SharePoint)
self-service
procurement portals
IoT
big data
robotics /
automationSaaS
mobile
technologies
e-invoicing
cloud-based
computing
crowdsourcing
Adoption of disruptive technologies currently focuses on internal use cases
blockchain
predictive
analyticscognitive
analytics
social media

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Procurement: at a digital tipping point?
70% of CPOs focusing on user engagement & experience through delivering self-service solutions
26%
45%
Cloud-based
computing
2014
2015
6%
16%
Social media
2014
2015
43%
70%
Self-service
portals
2014
2015
Mobile
technologies
2014
2015
23%
42%

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Procurement: at a digital tipping point?
A grasp from successful use cases of digitalization within procurement
Cloud based self-service
procurement portal
Procurement
engagement advisor
Cognitive spend
insights (CSI)
Cloud-based network
connecting buyers &
suppliers

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Is your procurement function ready to
embrace the digital revolution?

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