The Hackett Group cites another example of “digital transformation”

Constantine Limberakis, Senior Director, Advisory, The Hackett Group, told us in an interview last April that risk mitigation is enhanced by digitization. Now evidence is surfacing that it is also having an impact on total landed costs.

A new research paper released by The Hackett Group maintains that “world-class” procurement organizations now operate at 21 percent lower labor costs than peers and have 29 percent fewer staff.

The research also found that digital transformation enables typical procurement organizations to reduce process costs by 30 percent, and world-class procurement organizations by 22 percent.

“Technology has always played an important role in enabling world-class performance through improved efficiency and effectiveness,” said spokesmen. “But procurement is now at an inflection point, the research found, and both world-class and typical procurement organizations will need to turn to digital transformation to ensure that they can continue to reduce costs and add value.”

A public version of the research, “Raising the World-Class Bar in Procurement Through DigitalTransformation,” is available on a comp limentary basis, with registration, at this link: http://go.poweredbyhackett.com/wcpro1806sm