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Inefficient procurement costing firms £2m a year

New research reveals that two thirds of UK businesses are still reliant on manual and paper-based procurement processes, with the lack of digitalisation wasting nearly £2 million year on average.

The research, commissioned by spend management and cloud solutions provider Ivalua, found that procurement, supply chain and finance staff were spending almost a third (31 per cent) of their time dealing with inefficient-paper based processes, with two thirds of businesses still reliant on them.

Nearly three quarters (71 per cent) of the 200 professionals surveyed across a range of sectors - including manufacturing - believed the rate of digitalisation in procurement was not going fast enough, with 64 per cent saying it was holding them back from doing their jobs. The vast majority felt digitalisation was happening far quicker in other departments such as marketing, HR or accounting.

Alex Saric, Smart Procurement Expert at Ivalua, said:

“Whilst functions such as accounting and marketing have embraced digitisation and made great strides over time, procurement at most organsations has remained a digital laggard, leaving many businesses unprepared to face today’s rapidly shifting business landscape.

“The lack of digitisation is creating serious problems for UK businesses, preventing teams from focusing efforts on more strategic activities and maximising the value of their spend and supply chains. For businesses serious about creating a competitive advantage and unlocking the strategic benefits procurement holds, much more needs to be done to invest in the right technology to enable digitalisation.”

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