The Challenge of Outdated Procurement Processes
In today’s competitive landscape, businesses risk losing their edge and innovation opportunities by relying on outdated procurement processes. New research from Vertice, a leading SaaS and cloud spend optimisation platform, highlights this pressing issue. As organisations strive for efficiency, the need to modernise procurement practices becomes increasingly critical.
Vertice conducted a survey of 300 global procurement leaders, revealing a direct link between procurement maturity and overall commercial performance. Shockingly, only 18% of businesses have optimised their procurement processes to be customised, transparent, automated, and intelligent. These forward-thinking organisations are reaping significant rewards, demonstrating a 32% greater capacity to implement new initiatives and a 29% faster pace in launching products and services.
Conversely, the remaining 82% of companies, whose procurement teams depend on decentralised, reactive, and manual processes, are not faring as well. The report indicates that this challenge is particularly pronounced in the US, where nearly 44% of businesses operate at the lowest maturity levels. In contrast, the UK presents a more optimistic picture, with two-thirds (67%) of businesses advancing their procurement practices through greater automation, AI integration, and strategic approaches.
Barriers to Procurement Maturity
Despite the clear advantages of enhanced procurement maturity, many leaders face obstacles in building high-performing procurement functions. The survey found that 37% of respondents believe their organisations do not prioritise procurement strategically, while 35% reported a lack of investment in necessary skills to address these challenges. This disconnect can hinder a company’s ability to remain agile in a fast-evolving market.
Introducing Intelligent Workflows
To empower procurement teams to elevate their maturity and achieve strategic impact more rapidly, Vertice has launched Intelligent Workflows, a procurement orchestration tool designed to simplify and expedite purchasing processes. This innovative solution alleviates the manual workload often shouldered by busy procurement teams, enabling them to focus on higher-value activities.
Features of Intelligent Workflows
Intelligent Workflows introduces smart, proactive decision-making capabilities within the procurement process. It features automated pre-approvals and routing, alongside simplified compliance measures, all while offering granular control and visibility for every ongoing purchase, renewal, and intake. By providing a clearer view of procurement activities, businesses can make informed decisions that align with their strategic goals.
Insights from Vertice’s Leadership
Eldar Tuvey, CEO and founder of Vertice, stated, Today’s procurement teams encounter roles that are becoming ever more complex and broad. In fast-growing or rapidly changing businesses, procurement processes often lag behind, forcing teams to fill in gaps manually. This approach hinders progress when businesses need to advance.”
He added, “Intelligent Workflows provides the necessary boost. Our new procurement orchestration tool injects automation and intelligence into purchasing, eliminating manual approval routing, anticipating bottlenecks, and lightening the daily workload for procurement teams—ultimately enhancing control and speeding up outcomes.”
As companies continue to navigate the complexities of digital transformation, solutions like Intelligent Workflows will play a vital role in driving efficiency and competitive advantage. By adopting modern procurement practices, organisations can position themselves for success in an increasingly digital world.