{"id":21271,"date":"2021-03-08T14:33:00","date_gmt":"2021-03-08T11:33:00","guid":{"rendered":"https:\/\/saudishopper.com.sa\/en\/?p=21271"},"modified":"2026-03-27T20:40:57","modified_gmt":"2026-03-27T17:40:57","slug":"organizations-view-procurement-as-increasingly-strategic","status":"publish","type":"post","link":"https:\/\/saudishopper.com.sa\/en\/organizations-view-procurement-as-increasingly-strategic\/","title":{"rendered":"Organizations view procurement as increasingly strategic"},"content":{"rendered":"\n<p class=\"has-text-align-center wp-block-paragraph\"><em>IPG-JAGGAER survey identifies steady overall progress but also a \u201cCovid-19\u201d effect<\/em><em><\/em><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/saudishopper.com.sa\/ar\/?p=37656\" target=\"_blank\" rel=\"noreferrer noopener\">\u0639\u0631\u0628\u064a<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Dubai, United Arab Emirates, March 7, 2021:<\/strong>\u00a0Procurement remains heavily weighted towards operational as opposed to strategic functions, but the latest survey conducted by Swiss-based innovation consultancy\u00a0<a href=\"http:\/\/www.swiss-ipg.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">IPG Group<\/a>\u00a0and leading spend management technology company\u00a0<a href=\"http:\/\/www.jaggaer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">JAGGAER<\/a>\u00a0has identified an ongoing shift towards the strategic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Between July and October 2020, chief procurement officers, directors of procurement, and other senior executive-level decision-makers participated in the 2020 Procurement Performance Excellence (PPE) Survey. The PPE method is based on a proven approach developed by IPG in the early 2000s and regularly adapted to the changing best practices in procurement. In 2016, IPG conducted a similar study, enabling analysis of progress over the past four years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe main positive from this report, in my opinion, is that procurement is viewed more strategically than four years ago. Heads of procurement have moved up the hierarchy. This gives procurement the visibility and proximity to the leaders of the stakeholder functions that they need to push for change, for investment, and project sponsorship,\u201d JAGGAER CEO Jim Bureau said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It seems that Covid-19 negatively impacted the supplier portfolio structure pyramid compared with 2016 and, as a result, slightly diluted the rate of concentration on key suppliers,\u00a0defined in this context as large suppliers that account for 80% of spend volume, although it remains high.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The survey report also indicated that the average number of suppliers managed by a strategic procurement professional had increased considerably, from six in 2016 to 16 in 2020. \u201cThis would seem to be a blip caused by Covid-19 because it is unsustainable for any length of time,\u201d commented Carsten Vollrath, Founder, IPG Group.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201c2020 was, of course, an exceptional year. Consequently, some of the results have been influenced by the \u2018Covid-19 effect\u2019. One likely impact is that more strategic approaches to procurement technology may have had to take a backseat. At the same time, companies digitalize those functions that enable them to weather the storm, for example, by facilitating remote working and paper-free document exchange,\u201d Vollrath added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">, According to the report authors, the identified average performance can be interpreted as \u201cunderdeveloped\u201d in relation to the new normal of digital procurement standards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe level of maturity is limited to digitization and surfacing of information \u2013 and analytics that goes deeper and would bring greater efficiency, has not yet been widely adopted,\u201d said Michael R\u00f6sch, SVP Customer Engagement Europe, JAGGAER.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The survey found that 70% of participants have at least started to digitize highly standardized procurement processes. Still, the high number of operational procurement employees (on average, 125 operational procurement FTEs to 37 strategic procurement FTEs) indicates that there is still lots of potential for further digitalization and automation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cJust 17% are doing simulations, and a tiny 2% are already doing predictive analytics \u2013 we expect this figure to increase significantly as business turbulences will continue to rise and predictions become more and more critical to procurement success,\u201d R\u00f6sch said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The\u00a0<a href=\"https:\/\/bit.ly\/3qkCHkR\" target=\"_blank\" rel=\"noreferrer noopener\">survey report<\/a>\u00a0is available for free download from IPG Group and JAGGAER. Participants in the survey receive individualized reports, enabling them to benchmark their organizations\u2019 performance against the survey averages.\u00a0<a href=\"https:\/\/bit.ly\/3bVFN9J\" target=\"_blank\" rel=\"noreferrer noopener\">Webinars<\/a>\u00a0presenting the main findings are scheduled for March 17 (English) and March 16 (German).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IPG-JAGGAER survey identifies steady overall progress but also a \u201cCovid-19\u201d effect Dubai, United Arab Emirates, March 7, 2021:\u00a0Procurement remains heavily weighted towards operational as opposed to strategic functions, but the latest survey conducted by Swiss-based innovation consultancy\u00a0IPG Group\u00a0and leading spend management technology company\u00a0JAGGAER\u00a0has identified an ongoing shift towards the strategic. Between July and October 2020, [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":21272,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_meta-robots-noindex":"","_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","_pr_autopilot_social_copy":"","_yoast_wpseo_opengraph_title":"","_yoast_wpseo_opengraph_description":"","_yoast_wpseo_opengraph_image":"","_yoast_wpseo_opengraph_image_id":0,"_yoast_wpseo_twitter_title":"","_yoast_wpseo_twitter_description":"","_yoast_wpseo_twitter_image":"","_yoast_wpseo_twitter_image_id":0,"_yoast_wpseo_primary_category":24,"_extra_hide_author_box":"","_extra_featured_post":"","_partner_post_id":0,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-21271","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>strategic procurement - Organizations shift procurement | Saudi Shopper<\/title>\n<meta name=\"description\" content=\"Strategic procurement is gaining momentum. 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