PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021

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PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
PwC Digital
Procurement Survey
3rd edition

2020-2021
PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
Contents
Survey results                                                     8                         On behalf of the PwC Partners and
                                                                                             employees who have been working hard
    Purchasing department priorities
                                                                                             during the pandemic, I am proud to present
    Overview of purchasing department digital transformation
                                                                                             the third edition of the PwC Digital
    Digital use cases and development prospects                                              Procurement Survey. This year, we received
    Key success factors for digital transformation in                                        more than 400 responses in almost
                                                                        Isabelle Carradine
    procurement                                                                              30 countries. I would like to wholeheartedly
                                                                        PwC France
                                                                        Partner
                                                                        Strategic Supply
                                                                                             thank the more than 100 French purchasing
Impact of Covid-19                                                 28   Management           departments who took the time to answer
                                                                                             our questions.
Sector analysis                                                    35                        France remains ambitious and continues to
                                                                                             look for ways to accelerate digitisation
                                                                                             practices, with a particular focus on risk
                                                                                             management, the importance of which has
                                                                                             been highlighted during the health crisis.

                                                                         Authors

                                                                                             Alexandre Roux               Philippe Gaurois   Florian Tue
                                                                                             Consultant                   Senior Manager     Consultant
                                                                                             France                       France             France

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                         Digital Procurement
                     PwC Digital ProcurementSurvey
                                             Survey– 2019
                                                     3rd edition                                   Digital Procurement
                                                                                               PwC Digital ProcurementSurvey
                                                                                                                       Survey– 2019
                                                                                                                               3rd edition
PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
Key findings from the survey

     Digital transformation remains a major challenge, although the current context is                             Making optimum use of digital solutions generates significant performance gains within

1    prompting purchasing departments to refocus on their core operations:
         • Process digitisation remains the third strategic priority, and is regarded as a driver of agility
                                                                                                               4   purchasing organisations:
                                                                                                                       • On average, 79% of purchasing departments say that they have seen improvements in
           and resilience.                                                                                               business performance and organisational benefits as a result of deploying a digital solution.
                                                                                                                         This is especially true in companies where the solution is strongly taken up by users and its
         • Cost reduction and supplier sourcing are the top two priorities. They enable companies to
                                                                                                                         features are used in full.
           meet their objectives of securing external resources and improving financial performance,
           which have been particularly exacerbated by the health crisis.
                                                                                                                   Among the key success factors for digital transformation projects, adapting procurement
                                                                                                               5
         • The Covid-19 crisis has led to a change in strategy by purchasing departments: more than
           60% of them have reconsidered their priorities in response to the crisis. Cost reduction and            processes to the chosen solution and investing heavily in change management are
           risk management were favoured in the short term while, in the medium term, process                      identified as major factors, while the choice of technology or integrator are less
           digitisation and supplier sourcing were reprioritised in order to prepare for the future.               important:
                                                                                                                       • Purchasing departments share a common view on the crucial role of business process
                                                                                                                         transformation in the success of a digital deployment project. Time spent on process
     The digital transformation of procurement processes has been steadily progressing over
                                                                                                                         redesign and change management will bring more value to a digital transformation project
     the years and is taking shape more quickly than expected, while continuing to be
2    supported by substantial investment:
         • The level of increase in digitisation has exceeded 2017 targets, demonstrating purchasing
                                                                                                                         than the technical aspects of choosing the solution and the integrator.

           departments’ commitment to digital transformation projects, as well as the growing role of
           digital technology in the purchasing function. This trend is set to intensify over the next two
           years, thanks to significant investment by companies of all sizes.

     The digital transformation of procurement practices can be seen in the use of
     fundamental use cases, and offers various short-term development perspectives:

3        • Certain digital use cases – including procure-to-pay, source-to-contract, and data analysis
           and management – have become the basis for the digitisation of the purchasing function.
           They are the most commonly used today and represent the highest investment intentions
           for the next two years.
         • Use cases that are currently not widely used – such as smart sourcing/relocation sourcing,
           risk management and virtual purchasing assistants – are expected to gain traction, with the
           number of users within purchasing departments set to double over the next two years.
           Such use cases will enable them to respond to the new challenges of agility and resilience.
         • The Covid-19 crisis has tested the resilience of both the digital tools available to
           purchasing departments, and digital transformation roadmaps. European roadmaps have
           been consolidated, while in Africa, two-year investment intentions have been significantly
           redistributed both upwards and downwards, in direct correlation with the digital use cases
           that were lacking during the crisis.

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                                PwC Digital Procurement Survey – 3rd edition                                                                 PwC Digital Procurement Survey – 3rd edition
PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
PwC Digital Procurement Survey
3rd edition

                                                                                                      Business sectors

 400+ participants
                                                                                                                                                  43%

                                                                                                                               Services                                                          Industry

            3
                                                                                                                                                                                  57%
                     major global regions
                     Europe – Africa – Middle East
                                                                                                      Company profiles

              29 countries represented
 Some of the most representative countries in their region:
                                                                                                              Very large companies:
                                                                                                              revenue of over €10 billion
                                                                                                              and more than 5,000 employees
                                                                                                                                                  24%                               22%        Small companies:
                                                                                                                                                                                               revenue of less than €50 million
                                                                                                                                                                                               and/or fewer than 250 employees

       • Europe: France, Turkey, Sweden, Germany, Spain
       • Africa: Kenya, Uganda, Zambia
                                                                                                              Large companies:
                                                                                                              revenue of between €1.5 and                                                      Medium-sized companies:
       • Middle East: United Arab Emirates, Qatar                                                             €10 billion and/or more than      18%                                 36%        revenue of between €50 million
                                                                                                              5,000 employees                                                                  and €1.5 billion and/or more than
 Other countries: Austria, Bahrain, Belgium, Côte d’Ivoire, Denmark, Egypt,                                                                                                                    250 employees
 Gabon, Lebanon, Luxembourg, Morocco, Netherlands, Nigeria, Norway,
 Oman, Saudi Arabia, South Africa, Switzerland, Tanzania, United Kingdom

                                                                                                      Participant profiles

           12 themes covered Including:
                                  • Strategic priorities of purchasing departments
                                                                                                                          Other (general management,
                                                                                                                          finance departments)

                                                                                                        Supply Chain/Operations Managers         9%
                                                                                                                                                         11%

                                                                                                                                                                                     23%       CPO (Chief Procurement Officer)

                                  • Digital roadmaps and future investment                                           Purchasing IS Manager     5%
                                  • Impact of Covid-19 on the digitisation of procurement processes
                                  • Digital use cases and perceived value                                                 Category Purchaser   12%

                                                                                                                                                                                   40%    Procurement Manager

 Responses received between March and September 2020

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                                        PwC Digital Procurement Survey – 3rd edition                                                            PwC Digital Procurement Survey – 3rd edition
PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
1
                                              Survey results

                    |6|                                               |7|
    Digital Procurement
PwC Digital ProcurementSurvey
                        Survey– 2019
                                3rd edition           Digital Procurement
                                                  PwC Digital ProcurementSurvey
                                                                          Survey– 2019
                                                                                  3rd edition
PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
Digital transformation remains a strategic priority, although the
current context is prompting purchasing departments to
refocus on cost issues and supplier sourcing

    3
             rd
                   Digital transformation is the third strategic priority                                Despite the crisis, digital transformation
                   for purchasing departments                                                            remains a fundamental trend

Top three strategic priorities for purchasing departments                                                Changes in purchasing departments' strategic priorities between 2019 and 2020

                                                                                                               Consolidation and simplification, mass                                                                                  43%

 #1
                                                                                                                                                                   Cost reduction
                                                                                                        purchasing, supplier portfolio downsizing, cost                                                              22%
                                                                                                                  control, financial gains, productivity
                  Cost reduction                                                        43%
                                                                                                                 Identification and qualification of new
                                                                                                                                                                Supplier sourcing,                                     24%
                                                                                                       purchasing strategies, selection of new vendors,
                                                                                                             industrial partnerships, locations, supplier                    SRM                                 20%

 #2
                                                                                                                        relationship management (SRM)

                  Supplier sourcing and management                          24%                                                                                             Digital                      12%
                                                                                                           Process digitisation, operational excellence,
                                                                                                                                                                    transformation                             17%
                                                                                                                digital innovation, process automation

 #3
                                                                                                        Anticipation of both internal and external risks,                                           9%
                                                                                                                                                                 Risk management
                  Process digitisation                       12%                                         management of economic instability, supplier
                                                                                                                                 risks, supply chain risk
                                                                                                                                                                                                                 20%

                                                                                                                Attractiveness, retention, upskilling and        Talent acquisition            5%
                                                                                                                            human capital management             and development                         12%

In response to the current challenges of improving financial performance and increasing supply chain
security, purchasing departments are refocusing on their core operations by reprioritising cost                    Strategic sourcing, open innovation,                                    4%
reduction and supplier sourcing.                                                                                    co-innovation, supplier partnership                 Innovation
                                                                                                                                                                                                7%
However, process digitisation remains a key concern, particularly as we are seeing a shift towards
remote working practices.
                                                                                                                Integration of social and ethical issues,
                                                                                                                               sustainable procurement                                    3%
                                                                                                                                                                              CSR
                                                                                                                                                                                          2%

                                                                                                                                                                                      0             10          20           30   40         50
                                                                                                                                                                   2020       2019

                                                                                                         Digital transformation remains a strategic priority: not only does it increase resilience and enable
                                                                                                         companies to react to the economic context, it is also a driver of agility and a source of
                                                                                                         competitiveness in the longer term.

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                                   PwC Digital Procurement Survey – 3rd edition                                                                             PwC Digital Procurement Survey – 3rd edition
PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
The digital transformation of procurement processes is
steadily progressing and has exceeded 2017 forecasts

          The digital transformation of procurement processes – both                                                                 Procurement process automation has exceeded 2017
          transactional and strategic – continues to progress                                                                        forecasts

The projects undertaken by purchasing departments in all industries are showing results year after                           Procurement process automation rates have exceeded the targets set by the 2017 Digital
year, and demonstrate the importance placed on automating procurement processes. But there is                                Procurement Survey, demonstrating the purchasing function's strong commitment to companies'
still a long way to go to take full advantage of digitisation.                                                               digital transformation.

Rate of automation of procurement processes
                                                                                                                                    Rate of process automation:

                                                                                               -15pts               -12pts                                                                                            To be achieved by 2022
                                                                                                           48%                                       Achieved
      50%
                                                                                  46%                                                                                                                                 (2017 projections)

                                    -12pts
      40%                                                                                                                             Automation of transactional processes
                      36%                                                                                        36%
                                                                                          31%                                         2017 projections vs 2020 achievement
      30%
                               24%                                                                                                  55%
                                                                                                                                                                                                         Automation of strategic process
                                                                                                                                                                                       50%
      20%                                                                                                                           50%                               48%                              2017 projections vs 2020 achievement
                                                                                                                                                             46%
                                                                                                                                                                                                                                                       45%
                                                                                                                                    45%
      10%
                                                                                                                                                                                                                                                39%
                                                                                                                                                                                                                                                       40%
                                                                                                                                    40%
        0%                                                                                                                                                                                                                        36%
                                                                                                                                            36%
                                                                                                                                            36%
                          2017(1)                      2018                          2019(2)                 2020                                                                                                                                      35%
                                                                                                                                    35%
                                                                                                                                                                                                                       31%
                          Processus transactionnels                               Processus stratégiques                                                                                                                                               30%
        Transactional processes:                                                                                                    30%
        From purchase ordering to payment (procure-to-pay), e-invoicing                                                                                                                           24%
                                                                                                                                                                                                                                                       25%
                                                                                                                                    25%
                                                                                                                                            2017 (1) 2018    2019 (2) 2020     2021    2022
        Strategic processes:                                                                                                                                                                                                                           20%
        From strategic sourcing to contractualisation (tendering process, contract management,
        supplier relationship management, risk anticipation)                                                                                                                                                                                           15%
                                                                                                                                                                                                         (1)
                                                                                                                                                                                                  2017         2018    2019 (2)   2020   2021   2022

        Process automation rate:
                                                                                                                              (1) PwC Digital Procurement Survey 2017/(2) PwC Digital Procurement Survey 2019
        Proportion of processes partially or fully automated by a digital solution

(1) PwC Digital Procurement Survey 2017/(2) PwC Digital Procurement Survey 2019

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                                             PwC Digital Procurement Survey – 3rd edition                                                                               PwC Digital Procurement Survey – 3rd edition
PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
Significant investment planned to support the digital
transformation of purchasing departments

Investment forecasts for the digital transformation of purchasing departments over
the next two years

                     Small companies                                               €270k
    revenue of less than €50 million and/or
                 fewer than 250 employees

                                                                                               Two-year
                                                                                                average
            Medium-sized companies                                                   €420k    investment
                      revenue of between                                                     forecasts per
               €50 million and €1.5 billion                                                  company, all
         and/or more than 250 employees                                                         sectors
                                                                                               combined

                      Large companies                                                           €900k
             revenue of between €1.5 and
                  €10 billion and/or more
                                                                                   €1,200k
                   than 5,000 employees

                 Very large companies
      revenue of over €10 billionand more                                         €2,500k
                    than 5,000 employees

These ambitious investment forecasts offer support for the implementation of purchasing
departments’ digital roadmaps. They show the expected tangible return on investment and therefore,
the importance given to the digital transformation of the purchasing function.

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                                              PwC Digital Procurement Survey – 3rd edition                   PwC Digital Procurement Survey – 3rd edition
PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
The survey highlights three groups of digital use cases for which
  we propose a different development strategy

            Estimated growth in the number of users over the next two years
            Number of businesses using the use case currently/number of businesses using the use case currently and
                                                                                                                                          Purchasing departments' digital roadmaps highlight three groups of use cases based on their stage
            are planning to prioritise the use case over the next two years
                                                                                                                                          of development. We recommend implementing different development strategies in order to continue
                                                                                                                                          the digital transformation.
                         3 - High-potential
                             use cases

200%                                                                                                                                                                                              PwC recommendations
                      Smart sourcing,
                         relocation sourcing                                                                                              1 – Fundamental use cases
        Virtual purchasing assistant                                                Development matrix                                    Procure-to-pay (P2P), source-to-contract (S2C),              Extend
                                       Experiment                                   for digital use cases                                 and data analysis tools are the use cases most
                                                                                                                                          frequently used by purchasing departments                    • Continue to develop best practices and
150%
                                                                                                                                          today, and which represent the highest                         harmonise processes
                                    Risk management                                                                                       investment intentions. They form the basis of
                                                                                                                                          the purchasing department's digital                          • Increase the number of users and the
                                                                                                                                          transformation.                                                purchasing scope

100%
                              Automation of                                                                         1 - Fundamental
                         administrative tasks                              Data analysis and visualisation              use cases

                 Collaborative portal
                                                                                                                                          2 – Developing use cases
                                                                                                                                          They are already used by a large number, but                 Confirm
                                                                                                                                          not the majority, of purchasing departments.
50%             Marketplaces                                                                                 P2P digitisation and         Nevertheless, they remain the focus of                       • Measure the value contributed by the
                               Supply chain traceability                     S2C digitisation
                                                                                                             e-invoicing                  significant investments.                                       use case
                               and supplier knowledge
                                                                                                                                                                                                       • Accelerate the development of the most
                                                                                                                                                                                                         promising use cases
        2 - Developing                   Confirm                     Extend
            use cases                                                                                                                                                                                  • Roll out across the organisation
 0%
       0%             10%                20%               30%                  40%               50%               60%             70%

        Current usage of the use case:                                                                                                    3 – High-potential use cases
        % of companies who say the use case is one of their top three most used use cases                                                 These are the use cases that offer the strongest             Experiment
                                                                                                                                          development potential over the next two years
                                                                                                                                          compared to their current use. They respond to               • Test use cases
       >35%                                                                                                                               the new challenges of supply chain agility and
                    25%                     Prioritisation of the use case over the next two years:                                       resilience, and should see their number of users             • Confirm the ROI
PWC DIGITAL PROCUREMENT SURVEY - 3RD EDITION 2020-2021
PwC's vision: the digital journey of tomorrow’s purchaser can
be illustrated using high-potential use cases

By 2025, the purchaser’s journey will be supported by numerous high-potential digital use cases to                                                                                           Industry Lab: Located at PwC's premises in Neuilly-sur-Seine, France, the Industry Lab is an
facilitate day-to-day tasks and boost the added value of the purchasing function. The results of the                                                                                         immersive space dedicated to Industry 4.0 that provides technological demonstrators and use cases
survey confirm PwC’s vision of procurement process digitisation. PwC is always on the hunt for                                                                                               relating to industrial processes and technological innovations. This infographic shows an example of
innovative technology, and helps its clients identify and deploy digital innovations.                                                                                                        a purchaser’s journey, presented at the lab during a digital immersion session.

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                                                                                                                    Relocation sourcing and                                                           Process intelligence:
                                                                                                                    supplier risk management:
                                                                Tail spend automation:                                                                                                                Optimise procure-to-pay and
                                                                                                                    Map high-risk suppliers (e.g.,                                                    accounts payable processes by                                                                 Virtual purchasing assistant:
                                                                Automate the purchasing                             based on financial situation,                                                     using data mining and advanced
                                                                department's management                                                                                                                                                                                                             Automate communications
                                                                                                                    dependency, location, market                                                      data analysis to identify
                                                                process for low-value tenders to                                                                                                                                                                                                    between suppliers and accounts
                                                                                                                    tensions, CSR criteria) and                                                       bottlenecks and establish action
                                                                allow purchasers to focus on                                                                                                                                                                                                        payable teams, enabling them to
                                                                                                                    identify potential alternatives                                                   plans.
                                                                strategic suppliers and tenders.                                                                                                                                                                                                    track the status of their invoice
                                                                                                                    through the use of the
                                                                                                                                                                                                                                                                                                    directly without having to
                                                                                                                    "AGIR-PwC" app for the digital
                                                                                                                                                                                                                                                                                                    contact the purchaser
                                                                                                                    management of risks and
                                                                                                                    relocation sourcing.

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                                                                     PwC Digital Procurement Survey – 3rd edition                                                                                                                                                 PwC Digital Procurement Survey – 3rd edition
Despite its still limited uptake by purchasing departments,
blockchain technology represents a big development
opportunity

Perception of Blockchain technology by purchasing departments in 2020

                                                                                                                    A concrete example of the use of Blockchain
                                                                                                                    in a purchasing organisation:
                     13%                                               Being tested in
                                                                       their organisation
                                                                                                                    Supply chain security:

                                                                       Opportunity identified, but no               Blockchain tools help to secure supply chains and maintain sovereignty in a context of
                                                                       appropriate offering available               interdependence. They can also be used to:
                                                 50%                   on the market                                     •   give each stakeholder the possibility to transparently monitor supply chain flows, including
          37%                                                                                                                complex supply chains such as those for medical devices, while increasing the overall
                                                                                                                             responsiveness of the supply chain;
                                                                       No added value perceived
                                                                       for their function                                •   create a platform to certify the origin of components of products or services;

                                                                                                                         •   generate a digital ID for each of the different stakeholders in the supply chain;

                                                                                                                         •    raw up a map of n-tier suppliers to protect the company's sovereignty in the event of a
                                                                                                                             d
Blockchain technology is not currently widely used by purchasing departments, however, it
                                                                                                                             systemic crisis.
represents a good development opportunity. Many companies are considering certain applications of
the technology – for example in the areas of supply chain traceability or traceability of quality-related
events – in order to improve risk management.

The 2019 survey found that purchasing departments were already exploring this technology:

                Expectations

                               Blockchain

                                                                    Industry 4.0        Data analytics
                                 Peak of inflated expectations
                                                                    Automation          S2P tools

                                                  Artificial
                                                  intelligence

                                                                                                  Maturity

                                                                       Appropriation

                                              Trough of disillusionment

                    Arrival on the market of a new technology                                                Time

Source: PwC Digital Procurement survey 2019
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                                               PwC
                                               PwCDigital
                                                   Digital Procurement Survey –– 33rdrd edition
                                                           Procurement Survey           edition                                                       PwC Digital Procurement Survey – 3rd edition
The higher the take-up of digital technology, the greater the
benefits companies see on purchasing department performance

     2                                                                                                                                8
                   in 10 purchasing departments                                                                                                     in 10 purchasing departments
                        say that they are making optimum, long-lasting use of                                                                           have noticed a positive impact on their organisation and
                        their digital solutions (22%)                                                                                                   performance (79%). The perceived value of these positive
                                                                                                                                                        impacts is directly correlated with the company’s profile.

Companies can be divided into three profiles based on the rate of user take-up and feature                                        Perception of positive impacts by company profile:
use:

                                                                                                                                   % of companies having noticed an improvement in their performance following the deployment of a digital solution
                                                                                                                             % of companies having noticed an improvement in their performance following the deployment of a digital solution
                                                                                                                                                                                   Between 40% and 60%          Between 60% and 80%     80% to 90%       >90%
                                          Profile 1 (P1) - Optimal deployment
                                                                                                                                                                            Between 40% and 60%            Between 60% and 80%    80% to 90%      >90%
                                      Profile
                                          The 1 (P1) - Optimal
                                              purchasing            deployment
                                                         organisation has rolled out a large number of digital solutions
                                                                                                                                    Improved purchasing
                                      The purchasing organisation has rolled out a large number of digital solutions                department  performance
                                                                                                                                Improved purchasing
          Proportion of companies*                        User take-up rate                               Feature use rate          and competitiveness
                                                                                                                                department performance
                                                                                                                                and competitiveness                                                            P3                                P2 P1
                   22%
   Proportion of companies*                                  >75%
                                                   User take-up rate                                          >75%
                                                                                                    Feature use rate
                                                                                                                                                                                                          P3                            P2 P1
               22%                                      >75%                                              >75%
                                                                                                                                    Simplified
                                          Profile 2 (P2) - Mid-deployment                                                           processes
                                                                                                                                Simplified
                                      Profile
                                           The2purchasing
                                                (P2) - Mid-deployment
                                                          organisation is currently rolling out digital solutions               processes
                                      The purchasing organisation is currently rolling out digital solutions                                                                                                   P3                       P2       P1
                                                                                                                                                                                                     P3                           P2     P1
           Proportion of companies*                       User take-up rate                               Feature use rate
                    33%
    Proportion of companies*                               25 to
                                                   User take-up rate75%                                     25 rate
                                                                                                    Feature use to 75%              Greater internal
              33%                                     25 to 75%                                       25 to 75%                     customer
                                                                                                                                Greater        satisfaction
                                                                                                                                        internal
                                                                                                                                customer satisfaction
                                                                                                                                                                                        P3                                             P2                P1
                                                                                                                                                                                 P3                                              P2               P1
                                          Profile 3 (P3) - Limited deployment
                                      Profile
                                          The 3 (P3) - Limited
                                              purchasing            deployment
                                                         organisation has begun to roll out digital solutions
                                      The purchasing organisation has begun to roll out digital solutions
                                                                                                                                      Increased team
                                                                                                                                      efficiency
                                                                                                                                Increased    team
           Proportion of companies*                       User take-up rate                               Feature use rate      efficiency
                    18%
    Proportion of companies*
Success factors for the digital transformation of the purchasing
function: process adaptation and change management come
out ahead of the choice of technology or integrator

                                                                                                        Business process transformation is the main success factor in
Success factors for the digital transformation of the purchasing function: process
adaptation and change management come out ahead of the choice of technology or                          digital solution deployment projects
integrator:

                                              0%                 20%                 40%          60%

         Adaptation of existing processes
                       to digital solutions                                                      54%
                                                                                                                                                            Purchasing departments share a common view on the
                                                                                                                     Support for                            crucial role of business process transformation in
       Investment in change management                                                           54%            the transformation of                       the success of a digital deployment project.
      Involvement of internal stakeholders                                                                      purchasing practices                        Time spent on process redesign and change
         (business players, sponsors, etc.)                                                44%                                                              management will bring more value to a digital
                                                                                                                                                            transformation project than the technical aspects of
                                                                                                                                                            choosing the solution and the integrator.
                         Choice of vendor                                      30%                           Choice of digital solution
                                                                                                                                                            Digital transformation can also be seen as a driver of
                                                                                                                  and integrator
              Choice of integrator/project                                                                                                                  business process transformation.
                                                                              29%
                   management support

        Consideration of corporate culture                                26%

                       Supplier enrolment                            21%

                                                                                                        In the 2019 Digital Procurement
                                                                                                        Survey, the main obstacles
                                                                                                        preventing companies with a high
                                                                                                                                                                                             IT skills
                                                                                                        rate of digitisation from implementing

           The success of a digital deployment project depends on the
                                                                                                        technologies were skills, closely
                                                                                                        followed by change management and
                                                                                                                                                          Change
                                                                                                                                                        management                           19%
                                                                                                                                                             18%
                                                                                                        sponsorship.                                                                                     Sponsorship
           company's ability to standardise and implement processes.
                                                                                                                                                                                             #1
                                                                                                        The 2020 and 2019 findings confirm
                                                                                                        the crucial importance of business                                                                 16%
                                                                                                                                                                        #2
                                                                                                        process transformation, and in
          Purchasing IS Manager for a large automotive company                                          particular change management, in a

                                                                                                                                                                                                         #3
                                                                                                        digital transformation project. These
                                                                                                        are factors for success, but can also
                                                                                                        become sources of failure.

                                                        | 22 |                                                                                                 | 23 |
                                    PwC Digital Procurement Survey – 3rd edition                                                          PwC
                                                                                                                                          PwCDigital
                                                                                                                                              Digital Procurement Survey –– 33rdrd edition
                                                                                                                                                      Procurement Survey           edition
To go a step further, PwC’s Digital Procurement Maturity Model
can be used as a starting point to build a digital roadmap
aligned with your purchasing function's development objectives

PwC’s Digital Procurement Maturity Model

    PwC has developed a tool to evaluate
    purchasing department's digital maturity.
    It looks at 8 different aspects to provide                                                                                                                                                                 Advanced

    an assessment of the level of process                                                                                                                                                             • Regarded by the company as a
                                                                                                                                                                                                        strategic partner
    digitisation within purchasing                                                                                                                                Mature
                                                                                                                                                                                                      • Purchasing category
                                                                                                                                                                                                        management optimised overall
    departments, which can then be used                                                                                                                                                               • Proactive supplier development
    to refine their roadmaps.                                                                                                                          • SRM programme in place                         programme with integrated
                                                                                                                                                                                                        CSR programme
                                                                                                                                                       • Frequent use of supply levers
                                                                                                                        In development                                                                • Ongoing review of the supplier
                                                                                                                                                       • Highly automated systems
                                                                                                                                                                                                        pool
                                                                                                                                                       • Contract templates available
                                                                                                                  • Product-oriented                     electronically                               • Fully automated contract
                                                                                                                   cross-functional teams                                                               process
                                                                                                                                                       • Very efficient operations
                                                                                                                  • Purchasing considered a                                                           • Advanced data and market
                                                                                       Aware                        strategic function                 • Processes are automated and                    analysis to support decision
                                                                                                                                                         exceptions automatically                       making
                                                                                                                  • Focus on total cost of ownership     passed on to users
                                                                           • Basic S2P practices streamlined      • Integrated S2P                                                                    • Completely automated AP
                                                                                                                                                       • Frequent use of 3-way
                                               Beginner                    • Purchasing department                • Contract templates, electronic
                                                                                                                                                                                                        processes
                                                                                                                                                         matching
                                                                             systematically involved in a           signatures and digitised                                                          • All invoices received
                                     • Considered a back office                                                                                        • “NO PO - No Pay” policy in
                                                                             limited scope of purchases             delegation of authority                                                             electronically
                                       transactional function                                                                                            place, PR also required
                                                                           • Procurement process still very       • Systematic involvement of                                                         • Comprehensive supplier risk
                                     • Limited systems and data                                                                                        • 360-degree view of supplier
                                                                             inconsistent across the rest of        purchasing in the supplier life                                                     management solution
                                       availability                                                                                                      data
                                                                             the purchasing category scope          cycle (selection, supplier pool,                                                  • Invoice indexing automated
                                     • Purchasing policies (contractual,                                            approval, etc.)                    • Preventive controls built into
                                                                           • Delegation of authority is defined                                                                                         using AI
                                       validation, processes) lack                                                                                       platforms
                                                                             and consistent across the group      • Clear separation of duties                                                        • Automatic cash flow forecasting
                                       harmonisation                                                                                                   • Shared and integrated supplier
                                                                           • Collaborative supplier portal        • No duplicate suppliers                                                              based on AI and past
                                     • Decentralised operation                                                                                           database                                       performance
                                                                           • Partial digitisation of downstream   • Invoice integration via an
                                     • Local practices and consistency                                                                                 • Marketplace
                                                                             processes (orders, invoicing,          integrated digital platform                                                       • Integration with digital tax tools
                                       of varied processes                                                                                             • Little administrative work
                                                                             etc.)                                                                                                                      and regulatory requirements
                                     • High percentage of
                                                                           • Partially shared and integrated                                                                                          • Fully integrated technological
                                       time-consuming manual and
                                                                             supplier database                                                                                                          ecosystem
                                       administrative tasks
                                                                           • Manual control environment
                                     • Collaboration and manual
                                       exchanges with suppliers            • Contract database
                                     • Very little use of digitised S2C
                                       and P2P processes (invoicing,
                                       orders, communication, etc.)

                                                | 24 |                                                                                                                      | 25 |
                            PwC Digital Procurement Survey – 3rd edition                                                                               PwC Digital Procurement Survey – 3rd edition
2   Impact of Covid-19

                    | 26 |                                                | 27 |
PwC Digital Procurement Survey – 3rd edition          PwC Digital Procurement Survey – 3rd edition
Purchasing departments are adapting their strategy and
reconsidering their priorities to respond to the crisis in the
short and medium term

      2/3                                                                                                                                                 2
                                        purchasing departments have reconsidered their                                                                              nd          Risk management ranked as second most used
                                        priorities following the Covid-19 crisis                                                                                                digital use case in response to the crisis

Percentage of respondents who have                                                                                                                    Most common use cases in a non-crisis environment
reconsidered their priorities as a result of the                            Purchasing departments' strategic
Covid-19 crisis                                                             priorities have been affected by the
                                                                            Covid-19 crisis
                                                                                                                                                        Fundamental use
                                                                                                                                                                                     #1     P2P digitisation & e-invoicing

                                                   Priorities               The short-term financial impact has led
                                                                                                                                                        case
                                                   maintained               to greater priority being given to cost
                                                                            reduction, while the need for agility in an
                                                                                                                                                        (the most used and
                                                                                                                                                        attracting the most
                                                                                                                                                                                     #2     Source-to-contract digitisation

                                                                            uncertain environment has pushed                                            investments)
        62%                                         38%                     companies to capitalise on risk
                                                                            management, digital transformation and                                                                   #3     Data analysis

                                                                            sourcing.
                                                                            Companies are aiming to build their
Priorities                                                                  finances back up before continuing their                                  Most common use cases during the Covid-19 crisis
reconsidered                                                                operations in a more agile way so that
                                                                            they are ready to face future crises.
                                                                                                                                                                                     #1     P2P digitisation & e-invoicing

                                                                                                                                                        High-potential use
>50%                   of purchasing departments that have reconsidered their priorities following the
                       Covid-19 crisis want to promote risk management and cost reduction within their
                       organisation
                                                                                                                                                        cases
                                                                                                                                                        (potential for strong
                                                                                                                                                                                     #2     Risk management

                                                                                                                                                        growth in use)

   Changes in purchasing
   department priorities are
                                                    Reconsideration of purchasing department's strategic
                                                    priorities  following
                                                     Reconsideration         the Covid-19
                                                                     of purchasing departments’crisis:
                                                                                                strategic priorities following the Covid-19 crisis:                                  #3     Data analysis

   consistent with their
                                                                                            0%        20%     40%        60%
   company’s strategy
                                                                                                                                                        The Covid-19 crisis has tested the resilience of the digital tools available to purchasing
   According to the PwC CFO                                              Risk management                                 54%
                                                                                                                                                        departments
   survey*, which gauged the
                                                                           Cost reduction                                53%                            Procure-to-pay continues to form the basis of            The use case that saw the largest increase in
   views of Chief Financial Officers
   following the Covid-19 crisis,                                                                                                                       purchasing department digitisation and has               use during the Covid-19 crisis is risk
                                                                   Digital transformation                   28%
   cost control is the main priority                                                                                                                    been the most widely used use case during                management. The ability of purchasing
   being adopted (for 82% of                                    Supplier sourcing, SRM                      26%                                         the crisis. Data management also remains                 departments to provide solutions to immediate
   respondents).                                                                                                                                        crucial in normal circumstances as well as in            risks has been put to the test, underlining the
   CFOs also believe that                           Talent acquisition and development            8%                                                    times of crisis.                                         importance of implementing a digital
   developing alternative supply                                                                                                                                                                                 transformation that increases the versatility of
                                                                                    CSR          5%
                                                                                                                                                        More exceptional use cases have highlighted
   sources will be their priority for                                                                                                                                                                            purchasing practices.
                                                                                                                                                        the advantages of having a high capacity for
   the supply chain.                                                           Innovation        4%                                                     digital resilience.

* PwC’s COVID-19 CFO Pulse Survey (April 2020)
                                                                | 28 |                                                                                                                                      | 29 |
                                            PwC Digital Procurement Survey – 3rd edition                                                                                                PwC Digital Procurement Survey – 3rd edition
Covid-19 has consolidated European roadmaps
and accelerated them in Africa

  57%
of respondents in the region are
                                                                               Europe
                                                                               The roadmaps of European purchasing
                                                                               departments appear to have been largely
                                                                               unaffected by the crisis, in terms of both
                                                                               investment and roadmap content. The
                                                                               Covid-19 crisis has consolidated their
                                                                                                                                        64%
                                                                                                                                       of the region's respondents say
                                                                                                                                       their investment intentions were
                                                                                                                                                                                                                          Africa
                                                                                                                                                                                                                          African purchasing departments have been
                                                                                                                                                                                                                          more heavily impacted by Covid-19:
                                                                                                                                                                                                                          investment intentions have been disrupted,
                                                                                                                                                                                                                          and certain use cases that were lacking
                                                                                                                                                                                                                          during the crisis have been reprioritised in
                                                                               digital priorities for the next two years.                                                                                                 company roadmaps. The Covid-19 crisis has
maintaining their investment                                                                                                           disrupted (up or down) by the                                                      revealed possible digital weaknesses, thereby
                                                                                                                                       Covid-19 crisis                                                                    accelerating the digital transformation
                                                                                                                                                                                                                          planned over the next two years.
    Investment
Changes in investment in Europe following the Covid-19 crisis                                                                            Investment

  0%                           25%                            50%                              75%                            100%     Changes in investment in Africa following the Covid-19 crisis

                  30%                                                                                                                     0%                              25%                             50%                              75%                            100%

       Investment reduced
                                                                           57%                                                                                  35%                                                                               Investment
                                                        Investment maintained                                           13%                                                                                                                        increased
                                                                                                                                                   Investment reduced                                        35%
                                                                                                       Investment increased                                                                             Investment                                     29%
                                                                                                                                                                                                        maintained

       Digital roadmaps                                                                                                                        Digital roadmaps
High-potential use cases are those for which there is the greatest correlation between the lack of                                     The lack of digital capabilities during the Covid-19 crisis was felt most acutely in Africa. There
these uses during the crisis and the resulting prioritisation over the next two years. This                                            is therefore a greater correlation between the use cases that were seen to be lacking during the
correlation is less significant for fundamental use cases, for which the crisis has simply reinforced                                  Covid-19 crisis and the digital use cases being prioritised over the next two years, showing that the
their prioritisation.                                                                                                                  crisis has accelerated companies' roadmaps.
           Use case being prioritised over the next 2 years              Uses cases lacking during the Covid-19 crisis
                                                                                                                                                         Use cases being prioritised over the next 2 years          Use cases lacking during the Covid-19 crisis

                 37%          -13 pts                                                                                                                     35%              -6 pts

                                                                                                                                                                     29%                                                                            +4 pts
                           24%                               26%                -6 pts                                                                                                                 25%                  -3 pts                            25%
                                                                                                         21%                                                                                                        22%                            21%
                                                                         20%                                       18%        -3 pts
                                                                                                                                                                                                                                                                    +7 pts
                                                                                                                                                                            +5 pts
                                                                                                                                                                            vs Europe                                  +2 pts

                                                                                                                                                     Fundamental use cases                           Developing                                High-potential use cases
          Fundamental use cases                              Developing                                High-potential                                                                                use cases
                                                             use cases                                   use cases

         Fundamental use cases                                            High-potential use cases                                      Developing use cases
         P2P digitisation & e-invoicing,                                  Smart sourcing and relocation sourcing, risk management,      Automation of administrative tasks, marketplaces, collaborative portals, supply chain traceability and supplier knowledge
         S2C digitisation, data analysis and visualisation                virtual purchasing assistants

                                                                | 30 |                                                                                                                                     | 31 |
                                           PwC Digital Procurement Survey – 3rd edition                                                                                             PwC Digital Procurement Survey – 3rd edition
Find out more

                                                                                                       3
Purchasing issues and practices can vary widely from one industry to
another. That’s why we wanted to study the digital characteristics of
purchasing departments in the industries most represented in this
survey*, so as to benchmark them within their sector and observe
what is specific about them.
                                                                                                           Close-up on industries
            Industry

           Manufacturing

           Energy & Utilities

            Automotive                                                  Services

                                                                    Retail &
            Pharmaceuticals                                         Distribution
            & Healthcare

                                                                    Banking, Insurance &
                                                                    Financial Services

                                                                    Technology, Software &
                                                                    Telecoms

   * Industries not analysed: Aerospace, Defence & Security; Construction & Infrastructure; Consumer
   Goods; Chemicals & Metallurgy; Entertainment, Communications & Media; Agri-Food; Public Sector;
   Business Services; and Transport & Logistics

                                                       | 32 |                                                                    | 33 |
                                   PwC Digital Procurement Survey – 3rd edition                              PwC Digital Procurement Survey – 3rd edition
Manufacturing businesses use digital transformation to increase their
                                    Manufacturing
                                                                                                                                           visibility across their supply chain

                                    Strategic priorities of purchasing departments                                                         Digital transformation performance

                                                                                                                                                                                     % of businesses rolling out their digital solutions in an
      Industry                                                          Manufacturing                                                                                                                     optimal way                                         % of businesses seeing
                                                                                                                                                                                                                                                              an improvement in their
                                                                                                                                                                                    High user take-up rate*                   High feature use rate**          average performance

                                                                                                                                                Industry                                        31%                                   26%                             79%
                                                                                                                                                Manufacturing                                   26%                                   24%                             84%
       2              1              3                   4                      2           1           3               4
  Supplier           Cost          Digital           Innovation              Supplier      Cost         Risk          Digital
                                                                                                                                           * solution used by more than 75% of targeted users
  sourcing,        reduction   transformation                                sourcing,   reduction   management   transformation           ** solution used in an efficient way thanks to use of more than 75% of its features
    SRM                                                                        SRM

Digital roadmap                                                                                      While cost reduction is the top       Although manufacturing companies seem to have more difficulty deploying digital solutions than their
                                                                                                     priority for purchasing               counterparts in industry, they are able to effectively leverage the added value of digital solutions.
                                                                                                     departments in manufacturing          Manufacturing companies are in agreement that adapting processes in line with digital solutions is the primary
        Industry                                     Manufacturing                                   companies, digital                    success factor for their digitisation projects, which suggests that this was lacking previously. When integrating
                                                                                                     transformation is not widely          with complex processes and business practices, the interface of a digital solution is of paramount
  Current most used digital use cases
                                                                                                     perceived as a strategic              importance. It is therefore key to gain an understanding of these processes before launching any digital
  1     P2P digitisation & e-invoicing               P2P digitisation & e-invoicing                  priority, and will therefore see a    transformation project.
                                                                                                     more moderate level of
  2     Data analysis and visualisation              S2C digitisation
                                                                                                     investment than the average
  3     S2C digitisation                             Supply chain traceability                       for industry over the next two
                                                                                                     years.
                                                                                                                                           Key success factors for digital transformation
  Use cases receiving the most investment                                                            Manufacturing companies
  1     Data analysis and visualisation              Automation of administrative tasks              mainly use digital tools for
                                                                                                     transactional purposes (P2P          90%
  2     S2C digitisation                             S2C digitisation                                                                                                                                                                                 Industry
                                                                                                     and S2P).                                             76%
  3     Automation of administrative tasks           Data analysis and visualisation                                                      80%                                                                                                         Manufacturing
                                                                                                     Supply chain traceability
                                                                                                                                          70%
                                                                                                     seems to be a common use                        59%
  High-potential use cases                                                                           case for manufacturing               60%                           53%
                                                                                                                                                                                                    50%
  1     Smart sourcing, relocation sourcing          Virtual purchasing assistant                    companies, as a response to          50%                                                 43%
                                                                                                                                                                               42%
                                                                                                     the need to (i) secure
  2     Automation of administrative tasks           Marketplaces                                                                         40%                                                                             34%
                                                                                                     significant supply risks, and                                                                                 30%                28% 26%
  3     Risk management                              Data analysis and visualisation                 (ii) know who their suppliers        30%                                                                                                           26% 24%        23%
                                                                                                     are outside of tier 1.               20%
                                                                                                                                                                                                                                                                             11%
  Average investment over 2 years                                                                                                         10%

                      €1,075k                                       €880k                                                                 0%

                                                                                                                                                    Adaptation of      Involvement of         Investment in           Choice of       Consideration     Choice of        Supplier
                                                                                                                                                        existing           internal              change              integrator/       of corporate      vendor         enrolment
                                                                                                                                                    processes to        stakeholders          management               project            culture
                                                                                                                                                   digital solutions      (business                                 management
                                                                                                                                                                           players,                                    support
                                                                                                                                                                       sponsors, etc.)
                                                                                                                                                                                                                                                              Base: 54 respondents

                                                                    | 34 |                                                                                                                                           | 35 |
                                                PwC Digital Procurement Survey – 3rd edition                                                                                                 PwC Digital Procurement Survey – 3rd edition
Moderate use of digital technology despite excellent performance
                                    Energy & Utilities
                                                                                                                                            from rollout of solutions

                                    Strategic priorities of purchasing departments                                                          Digital transformation performance

                                                                                                                                                                                      % of businesses rolling out their digital solutions in an
                                                                                                                                                                                                           optimal way                                            % of businesses seeing
     Industry                                                             Energy & Utilities
                                                                                                                                                                                                                                                                  an improvement in their
                                                                                                                                                                                     High user take-up rate*                   High feature use rate**             average performance

                                                                                                                                             Industry                                            31%                                   26%                                    79%

       2             1              3                  4                         2            1            3             4                   Energy & Utilities                                  50%                                   40%                                    68%
     Supplier        Cost          Digital          Innovation                 Supplier      Cost         Risk          Digital
     sourcing,     reduction   transformation                                  sourcing,   reduction   management   transformation          * solution used by more than 75% of targeted users
       SRM                                                                       SRM                                                        ** solution used in an efficient way thanks to use of more than 75% of its features

                                                                                                       The procure-to-pay process is        The Energy & Utilities industry has shown excellent performance in the rollout of digital solutions, both
Digital roadmap                                                                                        the use case targeted as a           in terms of user take-up and the use of technical features. It is one of the leading industries for the
                                                                                                       priority by purchasing               digital transformation of purchasing departments. Bringing stakeholders on board is seen as the main
                                                                                                       departments in the energy            success factor for digital transformation projects, which explains a high rate of take-up by business
       Industry                                    Energy & Utilities                                  industry. It is the most             players within the company. However, the perceived performance gains remain lower than for its
 Current most used digital use cases                                                                   widespread today and accounts        counterparts in the industry sector, which can be explained by a less advanced usage of digital
       P2P digitisation & e-invoicing              P2P digitisation & e-invoicing                      for enough investment for it to      solutions.
 1
                                                                                                       be considered a high potential
 2     Data analysis and visualisation             Data analysis and visualisation                     use case.
 3     S2C digitisation                            S2C digitisation
                                                                                                       This fundamental use case
                                                                                                       appears to present fewer
 Use cases receiving the most investment                                                               prospects for development in         Key success factors for digital transformation
 1     Data analysis and visualisation             Data analysis and visualisation                     the industry sector.

 2     S2C digitisation                            P2P digitisation & e-invoicing                      The wide range of purchases
                                                                                                       potentially makes it more                                                                                                                         Industry
 3     Automation of administrative tasks          S2C digitisation                                                                         70%                                     66%
                                                                                                       complicated to implement a                                                                                                                        Energy & Utilities
                                                                                                                                                        59%
                                                                                                       digital P2P solution for the         60%               56%
                                                                                                                                                                             53%
 High-potential use cases                                                                              energy industry: less than half of
                                                                                                       companies regularly use one,         50%
 1     Smart sourcing, relocation sourcing         Smart sourcing, relocation sourcing                                                                                                            43%
                                                                                                       compared to two thirds in the
 2     Automation of administrative tasks          Automation of administrative tasks                                                       40%                                                           34%
                                                                                                       industry sector.
 3     Risk management                             P2P digitisation & e-invoicing                                                                                                                                       30% 31%           28%
                                                                                                                                                                                                                                                31%
                                                                                                                                                                                                                                                                    28%               28%
                                                                                                                                            30%                                                                                                               26%
                                                                                                                                                                                                                                                                                23%
       Average investment over 2 years                                                                                                      20%

                    €1,075k                                      €950k                                                                      10%

                                                                                                                                            0%

                                                                                                                                                     Adaptation of        Involvement of         Investment in           Choice of       Consideration        Choice of          Supplier
                                                                                                                                                         existing             internal              change              integrator/       of corporate         vendor           enrolment
                                                                                                                                                     processes to          stakeholders          management               project            culture
                                                                                                                                                    digital solutions        (business                                 management
                                                                                                                                                                              players,                                    support
                                                                                                                                                                          sponsors, etc.)
                                                                                                                                                                                                                                                                  Base: 42 respondents

                                                                      | 36 |                                                                                                                                          | 37 |
                                                    Digital Procurement
                                                PwC Digital ProcurementSurvey
                                                                        Survey– 2019
                                                                                3rd edition                                                                                                       Digital Procurement
                                                                                                                                                                                              PwC Digital ProcurementSurvey
                                                                                                                                                                                                                      Survey– 2019
                                                                                                                                                                                                                              3rd edition
A well-controlled digital transformation focused on suppliers to
                                      Automotive
                                                                                                                                      secure the supply chain

                                      Strategic priorities of purchasing departments                                                  Digital transformation performance

                                                                                                                                                                                 % of businesses rolling out their digital solutions in an
                                                                                                                                                                                                      optimal way                                          % of businesses seeing
      Industry                                                           Automotive                                                                                                                                                                        an improvement in their
                                                                                                                                                                                High user take-up rate*                   High feature use rate**           average performance

                                                                                                                                        Industry                                            31%                                   26%                              79%
                                                                                                                                        Automotive                                          47%                                   41%                              85%
          2             1                3              4                     2          1           3               3
     Supplier        Cost            Digital       Innovation             Supplier      Cost         Risk          Digital             * solution used by more than 75% of targeted users
     sourcing,     reduction     transformation                           sourcing,   reduction   management   transformation
       SRM                                                                  SRM                                                        ** solution used in an efficient way thanks to use of more than 75% of its features

Digital roadmap                                                                                   Purchasing departments in the
                                                                                                                                       The Automotive industry is successfully optimising the rollout and use of its digital tools and maximising
                                                                                                  automotive industry are rolling      performance gains in its operations. It is performing better than its counterparts in the industry sector.
                                                                                                  out and maximising their digital
        Industry                                  Automotive                                                                           It bears highlighting that bringing suppliers on board is the main factor for the success of digital transformation
                                                                                                  solutions to ensure traceability     projects. It would appear that efforts made to involve suppliers and encourage them to use the digital tools are
 Current most used digital use cases                                                              in their supply chains and           bearing fruit, resulting in performance gains.
                                                                                                  consolidate their knowledge of
 1      P2P digitisation & e-invoicing            P2P digitisation & e-invoicing
                                                                                                  their suppliers.
 2      Data analysis and visualisation           S2C digitisation
                                                                                                  This digital use case is one of
 3      S2C digitisation                          Supply chain traceability                       the most-used today, and
                                                                                                  presents considerable
                                                                                                  prospects for development.          Key success factors for digital transformation
 Use cases receiving the most investment
 1      Data analysis and visualisation           Data analysis and visualisation                 Digital transformation is used to
 2      S2C digitisation                          S2C digitisation                                address procurement
                                                                                                  challenges specific to the          70%                                                                                                         Industry
 3      Automation of administrative tasks        Supply chain traceability                       automotive industry, in terms of                                                                                                                Automotive
                                                                                                                                                 59%
                                                                                                                                      60%
                                                                                                  managing relationships with                            53%          53%                                                                                                  53%
 High-potential use cases                                                                         suppliers at tier 1 level and                                                                    47%
                                                                                                                                      50%
                                                                                                  below, and the associated risks.                                                          43%
 1      Smart sourcing, relocation sourcing       Data analysis and visualisation
                                                                                                                                      40%
 2      Automation of administrative tasks        Supply chain traceability                                                                                                   33%
                                                                                                                                                                                                                 30%                28%
 3      Risk management                           S2C digitisation                                                                    30%                                                                                                            26%
                                                                                                                                                                                                                                                                     23%
                                                                                                                                                                                                                                                           20%
                                                                                                                                      20%
 Average investment over 2 years
                     €1,075k                                    €1,200k                                                               10%                                                                                 7%              7%

                                                                                                                                      0%

                                                                                                                                              Adaptation of        Involvement of         Investment in           Choice of       Consideration      Choice of         Supplier
                                                                                                                                                  existing             internal              change              integrator/       of corporate       vendor          enrolment
                                                                                                                                              processes to          stakeholders          management               project            culture
                                                                                                                                             digital solutions        (business                                 management
                                                                                                                                                                       players,                                    support
                                                                                                                                                                   sponsors, etc.)
                                                                                                                                                                                                                                                           Base: 27 respondents

                                                                     | 38 |                                                                                                                                      | 39 |
                                                  Digital Procurement
                                              PwC Digital ProcurementSurvey
                                                                      Survey– 2019
                                                                              3rd edition                                                                                                    Digital Procurement
                                                                                                                                                                                         PwC Digital ProcurementSurvey
                                                                                                                                                                                                                 Survey– 2019
                                                                                                                                                                                                                         3rd edition
Digital transformation to support securing complex and critical
                                    Pharmaceuticals & Healthcare
                                                                                                                                           purchases in a highly standardised environment

                                    Strategic priorities of purchasing departments                                                         Digital transformation performance

                                                                                                                                                                                    % of businesses rolling out their digital solutions in an
                                                                                                                                                                                                         optimal way                                         % of businesses seeing
     Industry                                                             Pharmaceuticals & Healthcare                                                                                                                                                       an improvement in their
                                                                                                                                                                                   High user take-up rate*                    High feature use rate**         average performance

                                                                                                                                            Industry                                            31%                                    26%                               79%
                                                                                                                                            Pharmaceuticals &
                                                                                                                                                                                                23%                                    23%                               77%
        2             1                 3              4                         2          1            3                  3               Healthcare

     Supplier        Cost          Digital          Innovation                 Supplier      Cost         Risk      Skills development     * solution used by more than 75% of targeted users
     sourcing,     reduction   transformation                                  sourcing,   reduction   management    and acquisition
       SRM                                                                       SRM                                                       ** solution used in an efficient way thanks to use of more than 75% of its features

                                                                                                                                           Although the user take-up rate is lower for purchasing departments in the Pharmaceuticals industry than for
Digital roadmap                                                                                        Data analysis and supply chain
                                                                                                                                           their counterparts in the industry sector, the performance gains are almost equivalent. The potential to improve
                                                                                                       traceability are the use cases      performance is promising, provided that investments are increased considerably.
                                                                                                       accounting for the most
                                                                                                                                           Take-up by and upskilling in digital solutions for employees should therefore be a priority in the coming years for
       Industry                                    Pharmaceuticals & Healthcare                        significant investments and         purchasing departments in this industry. There is a widespread observation among players in the
                                                                                                       with the highest development        Pharmaceuticals & Healthcare industry that performance gains are primarily generated by business process
 Current most used digital use cases
                                                                                                       potential over the next two         transformation.
 1     P2P digitisation & e-invoicing              P2P digitisation & e-invoicing                      years. They help manage
 2     Data analysis and visualisation             S2C digitisation                                    complex and technical
 3     S2C digitisation                            Data analysis and visualisation                     purchasing categories and
                                                                                                       meet standards specific to the
 Use cases receiving the most investment                                                               Pharmaceuticals & Healthcare        Key success factors for digital transformation
                                                                                                       industry. In addition, they
 1     Data analysis and visualisation             Data analysis and visualisation
                                                                                                       contribute to securing the
 2     S2C digitisation                            S2C digitisation                                    supply chain, an issue whose
                                                                                                                                            90%
 3     Automation of administrative tasks          Supply chain traceability                           critical importance was made                                                                                                                   Industry
                                                                                                                                                               78%
                                                                                                       even clearer by the Covid-19         80%                                                                                                       Pharmaceuticals &
                                                                                                       crisis.                                                                                                                                        Healthcare
 High-potential use cases                                                                                                                   70%
                                                                                                       It bears highlighting that skills                59%
 1     Smart sourcing, relocation sourcing         Supply chain traceability                                                                60%                               53% 56%
 2     Automation of administrative tasks          Risk management                                     development and acquisition is                                                                     50%
                                                                                                       positioned as the third priority     50%                                                    43%                           44%
 3     Risk management                             Data analysis and visualisation                     of purchasing departments in         40%
                                                                                                       the industry, demonstrating                                                                                       30%               28%
 Average investment over 2 years                                                                                                            30%                                                                                                             26%                23%
                                                                                                       the importance of talent                                                                                                                                   22%
                                                                                                       management over the long                                                                                                                                                      17%
                    €1,075k                                      €515k                                                                      20%
                                                                                                                                                                                                                                                  11%
                                                                                                       term, both in terms of hiring
                                                                                                                                            10%
                                                                                                       and retaining employees and
                                                                                                       supporting their upskilling.          0%

                                                                                                                                                     Adaptation of         Involvement of        Investment in           Choice of       Consideration of    Choice of          Supplier
                                                                                                                                                         existing              internal             change              integrator/        corporate          vendor           enrolment
                                                                                                                                                     processes to           stakeholders         management               project            culture
                                                                                                                                                    digital solutions         (business                                management
                                                                                                                                                                               players,                                   support
                                                                                                                                                                           sponsors, etc.)
                                                                                                                                                                                                                                                              Base: 25 respondents

                                                                      | 40 |                                                                                                                                         | 41 |
                                                    Digital Procurement
                                                PwC Digital ProcurementSurvey
                                                                        Survey– 2019
                                                                                3rd edition                                                                                                      Digital Procurement
                                                                                                                                                                                             PwC Digital ProcurementSurvey
                                                                                                                                                                                                                     Survey– 2019
                                                                                                                                                                                                                             3rd edition
Digital transformation to support purchasing as a source of
                                      Retail & Distribution
                                                                                                                                         competitive advantages

                                      Strategic priorities of purchasing departments                                                     Digital transformation performance

                                                                                                                                                                                  % of businesses rolling out their digital solutions in an
       Service sector                                                     Retail & Distribution                                                                                                        optimal way                                          % of businesses seeing
                                                                                                                                                                                                                                                            an improvement in their
                                                                                                                                                                                 High user take-up rate*                    High feature use rate**          average performance

                                                                                                                                          Service sector                                      37%                                      34%                              78%
                                                                                                                                          Retail & Distribution
        2             1                 3               4                     2           1            3              4                                                                       21%                                      37%                              81%

     Supplier        Cost          Digital             Risk               Supplier      Cost          Digital      Innovation            * solution used by more than 75% of targeted users
     sourcing,     reduction   transformation       management            sourcing,   reduction   transformation
                                                                                                                                         ** solution used in an efficient way thanks to use of more than 75% of its features
       SRM                                                                  SRM

Digital roadmap                                                                                     Digital tools are mainly used for    The industry appears to be experiencing difficulties reaching high levels of take-up of digital solutions by
                                                                                                    data management, and this            employees. An essential part of digital transformation is the accompanying transformation of business
                                                                                                    trend is set to intensify thanks     processes, particularly through the promotion of upskilling and changes in practices for employees.
       Service sector                              Retail & Distribution                            to significant targeted              The importance of integrating digital solutions may also be underestimated, explaining why the user take-up
 Current most used digital use cases                                                                investments.                         rate is significantly below average.
 1     P2P digitisation & e-invoicing              P2P digitisation & e-invoicing                   The use and monitoring of data
 2     S2C digitisation                            Data analysis and visualisation                  can generate competitive
                                                                                                    advantages in Retail &
 3     Collaborative portal                        Collaborative portal                             Distribution in terms of sales, of
                                                                                                    course, but also earlier in the
                                                                                                    chain at the purchasing stage.       Key success factors for digital transformation
 Use cases receiving the most investment
 1     P2P digitisation & e-invoicing              Data analysis and visualisation                  In addition, supply chain
 2     Data analysis and visualisation             P2P digitisation & e-invoicing                   traceability is a high-potential       60%          56% 56%                     56%                  56%
                                                                                                    digital use case. It is a way to                                                                                                               Service sector
 3     Risk management                             Risk management                                                                                                                                                                                 Retail & Distribution
                                                                                                    make transactions more reliable        50%                               46%                  45%
                                                                                                    and secure supply while also
 High-potential use cases                                                                           taking into account CSR issues         40%                                                                          38% 38%
 1     Risk management                             Risk management                                  (e.g., respect for the
                                                                                                    environment, fight against             30%                                                                                            28%
 2     Virtual purchasing assistant                Supply chain traceability
                                                                                                    undeclared work, etc.), which                                                                                                                         21%
 3     Data analysis and visualisation             Automation of administrative tasks               represent a growing concern for                                                                                                                             19%           18% 19%
                                                                                                                                           20%
                                                                                                    customers.                                                                                                                                  13%
 Average investment over 2 years                                                                                                           10%

                     €820k                                       €1,470k                                                                    0%

                                                                                                                                                     Adaptation of        Involvement of         Investment in            Choice of      Consideration      Choice of          Supplier
                                                                                                                                                         existing             internal              change               integrator/      of corporate       vendor           enrolment
                                                                                                                                                     processes to          stakeholders          management                project           culture
                                                                                                                                                    digital solutions        (business                                  management
                                                                                                                                                                              players,                                     support
                                                                                                                                                                          sponsors, etc.)

                                                                                                                                                                                                                                                            Base: 29 respondents

                                                                   | 42 |                                                                                                                                          | 43 |
                                                    Digital Procurement
                                                PwC Digital ProcurementSurvey
                                                                        Survey– 2019
                                                                                3rd edition                                                                                                     Digital Procurement
                                                                                                                                                                                            PwC Digital ProcurementSurvey
                                                                                                                                                                                                                    Survey– 2019
                                                                                                                                                                                                                            3rd edition
A digital transformation dynamic driven by the goal to manage risks
                                      Banking, Insurance & Financial Services                                                           in a competitive environment

                                      Strategic priorities of purchasing departments                                                    Digital transformation performance

                                                                                                                                                                                 % of businesses rolling out their digital solutions in an
                                                                                                                                                                                                      optimal way                                           % of businesses seeing
       Service sector                                                      Banking, Insurance & Financial Services
                                                                                                                                                                                                                                                            an improvement in their
                                                                                                                                                                                High user take-up rate*                     High feature use rate**          average performance

                                                                                                                                         Service sector                                      37%                                      34%                              78%

        2             1                 3                4                      2         1             3               3                Retail & Distribution                               47%                                      41%                              74%
     Supplier        Cost           Digital             Risk                Risk        Cost          Digital         Supplier
     sourcing,     reduction    transformation       management          management   reduction   transformation   sourcing, SRM        * solution used by more than 75% of targeted users
       SRM                                                                                                                              ** solution used in an efficient way thanks to use of more than 75% of its features

Digital roadmap                                                                                     The Banking, Insurance &
                                                                                                    Financial services industry is      The rapid development of fintech and the need for agility to meet customer requirements have led businesses in
                                                                                                                                        the industry to implement their digital transformation more quickly than their counterparts in the service sector,
                                                                                                    catching up on the use of
       Service sector                               Banking, Insurance, Financial                                                       which explains why they are a step ahead with the deployment of digital solutions.
                                                                                                    collaborative portals, which are
                                                    Services                                        already well integrated by other
 Current most used digital use cases                                                                service sector players. Such
 1     P2P digitisation & e-invoicing               P2P digitisation & e-invoicing                  tools help streamline
                                                                                                    interactions between
 2     S2C digitisation                             S2C digitisation
                                                                                                    purchasing advisors, purchasing
 3     Collaborative portal                         Data analysis and visualisation                                                     Key success factors for digital transformation
                                                                                                    departments and suppliers.
                                                                                                    With data security and
 Use cases receiving the most investment                                                            cybersecurity having become
 1     P2P digitisation & e-invoicing               Risk management                                 key issues for the industry, risk
                                                                                                    management is now the second           60%          56% 56%                                                                                     Service sector
 2     Data analysis and visualisation              P2P digitisation & e-invoicing
                                                                                                    strategic priority. This use case                                               52%                                                             Banking, Insurance &
 3     Risk management                              Collaborative portal                            is set to see the highest levels       50%                                                                                                      Financial Services
                                                                                                                                                                             46%                  45%
                                                                                                    of investment and the most
 High-potential use cases                                                                           rapid development.                                                                                                     38% 37%
                                                                                                                                           40%                                                           37%
 1     Risk management                              Risk management                                 The arrival of new “digital                                                                                                                   33%
                                                                                                                                                                                                                                                                                   30%
       Virtual purchasing assistant                 Smart sourcing,                                 native” competitors on the             30%                                                                                              28%
 2                                                                                                  market is accelerating the
                                                    Relocation sourcing                                                                                                                                                                                    21% 22%
                                                                                                    industry's digital transformation                                                                                                                                        18%
 3     Data analysis and visualisation              Collaborative portal                                                                   20%
                                                                                                    and inciting companies to
                                                                                                    rethink their approach to              10%
 Average investment over 2 years                                                                    business processes.
                     €820k                                        €860k                                                                     0%

                                                                                                                                                      Involvement of       Adaptation of        Investment in            Choice of          Choice of   Consideration of      Supplier
                                                                                                                                                          internal            existing             change               integrator/          vendor       corporate          enrolment
                                                                                                                                                       stakeholders        processes to         management                project                           culture
                                                                                                                                                         (business             digital                                 management
                                                                                                                                                          players,           solutions                                    support
                                                                                                                                                      sponsors, etc.)
                                                                                                                                                                                                                                                             Base: 45 respondents

                                                                       | 44 |                                                                                                                                     | 45 |
                                                     Digital Procurement
                                                 PwC Digital ProcurementSurvey
                                                                         Survey– 2019
                                                                                 3rd edition                                                                                                   Digital Procurement
                                                                                                                                                                                           PwC Digital ProcurementSurvey
                                                                                                                                                                                                                   Survey– 2019
                                                                                                                                                                                                                           3rd edition
Purchasing departments are concentrating on the digital
                                      Technology, Software & Telecoms
                                                                                                                                        transformation of their transactional processes

                                      Strategic priorities of purchasing departments                                                    Digital transformation performance

                                                                                                                                                                                 % of businesses rolling out their digital solutions in an
                                                                                                                                                                                                      optimal way                                           % of businesses seeing
       Service sector                                                     Technology, Software & Telecoms                                                                                                                                                   an improvement in their
                                                                                                                                                                                High user take-up rate*                    High feature use rate**           average performance

                                                                                                                                         Service sector                                      37%                                      34%                               78%
                                                                                                                                         Technology, Software &
                                                                                                                                                                                             44%                                      40%                               87%
        2             1                 3               4                   2           1                3                  4            Telecoms
     Supplier        Cost          Digital             Risk             Digital        Cost      Supplier sourcing,        Skills
                                                                                                                                        * solution used by more than 75% of targeted users
     sourcing,     reduction   transformation       management      transformation   reduction         SRM            development and
       SRM                                                                                                               acquisition    ** solution used in an efficient way thanks to use of more than 75% of its features

Digital roadmap                                                                                     One third of respondents said
                                                                                                    that digital transformation was     The Technology, Software & Telecoms industry is successfully maximising performance gains from digital
                                                                                                                                        transformation. The automation of transactional processes helps generate visible benefits in standardised
                                                                                                    the top priority for purchasing
       Service sector                              Technology, Software &                                                               purchasing categories with a moderate level of complexity.
                                                                                                    departments in the Technology,
                                                   Telecoms
                                                                                                    Software & Telecoms industry,
 Current most used digital use cases                                                                tied with cost reduction.
 1     P2P digitisation & e-invoicing              P2P digitisation & e-invoicing
                                                                                                    This trend reflects the digital
 2     S2C digitisation                            Collaborative portal                             transformation challenges that
 3     Collaborative portal                        Automation of administrative tasks               these companies are                 Key success factors for digital transformation
                                                                                                    experiencing on their markets,
                                                                                                    beyond purchasing department
 Use cases receiving the most investment                                                                                                                                                                                                           Service sector
                                                                                                    level.
 1     P2P digitisation & e-invoicing              P2P digitisation & e-invoicing                                                                                                                                                                  Technology, Software &
                                                                                                    The use of digital tools is         60%         56%                                                                                            Telecoms
 2     Data analysis and visualisation             Collaborative portal
                                                                                                    concentrated on automating
 3     Risk management                             Data analysis and visualisation                  transactional processes, such
                                                                                                                                        50%
                                                                                                                                                           45%           46% 45%               45%
                                                                                                    as procure-to-pay and                                                                             40%                     40%
                                                                                                                                        40%                                                                          38%
 High-potential use cases                                                                           administrative tasks. These
                                                                                                    trends are set to intensify                                                                                                               30%
                                                                                                                                        30%                                                                                             28%
 1     Risk management                             Virtual purchasing assistant                     thanks to investments planned                                                                                                                          21% 20%
 2     Virtual purchasing assistant                Supply chain traceability                        over the next two years,            20%
                                                                                                                                                                                                                                                                              18%
 3     Data analysis and visualisation             Data analysis and visualisation                  particularly virtual purchasing
                                                                                                                                                                                                                                                                                    10%
                                                                                                    assistants, which have the          10%
                                                                                                    highest growth potential in
 Average investment over 2 years                                                                    terms of number of users.           0%
                      €820k                                      €1,070k
                                                                                                                                                   Adaptation of         Involvement of         Investment in            Choice of      Consideration of    Choice of           Supplier
                                                                                                                                                       existing              internal              change               integrator/       corporate          vendor            enrolment
                                                                                                                                                   processes to           stakeholders          management                project           culture
                                                                                                                                                  digital solutions         (business                                  management
                                                                                                                                                                             players,                                     support
                                                                                                                                                                         sponsors, etc.)

                                                                                                                                                                                                                                                             Base: 29 respondents

                                                                   | 46 |                                                                                                                                         | 47 |
                                                    Digital Procurement
                                                PwC Digital ProcurementSurvey
                                                                        Survey– 2019
                                                                                3rd edition                                                                                                    Digital Procurement
                                                                                                                                                                                           PwC Digital ProcurementSurvey
                                                                                                                                                                                                                   Survey– 2019
                                                                                                                                                                                                                           3rd edition
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