Corporations around the world have seen tumultuous business conditions over the past few years. The steady onslaught of new challenges has pushed many procurement teams into a mode of continually trying to react to the next crisis. Rather than simply managing cost reductions and implementing cost controls, teams are now thinking about workforce sufficiency, risk management, and response preparedness.
A commissioned study conducted by Forrester Consulting on behalf of SAP closely examines the impact of these shifts. The study questionnaire asked procurement professionals about what was most concerning to them in the last six months, and how they’re dealing with those concerns.
As reported in “The P2P Opportunity: Innovative Procurement in a Polycrisis Era,” the results were stark, with a majority of procurement leaders (51%) facing impacts tied to inflation and interest rates on the carrying costs of accounts payable.
Even more stark was that while many procurement leaders have identified the best ways to deal with these concerns, their companies still seem unprepared or underprepared. For example, 67% of respondents said that improving business agility on purchasing activity through reporting and analytics was a high or critical priority, but only 30% felt well-prepared to make it happen.
The research also showed that procure-to-pay (P2P) solutions are critical to achieve needed changes. In fact, 65% of respondents said that P2P solutions have increased in importance in the last six months. Yet while procurement sees the value, the rest of the organization is lagging – revealing the need to better amplify benefits and strengthen buy-in across the business.
To read more about this research and explore procurement leaders’ new priorities and plans, download the study or check out some of the other resources we’ve created.