The report highlights the importance of IT in transforming procurement into a digital, data-centric function to improve efficiency, reduce costs, and stay competitive in a volatile market. IT spend is a significant indirect expense for businesses, and collaboration between IT and procurement is necessary to reduce the cost of owning technology and create value for the enterprise. The report suggests investing in cloud technology to scale procurement operations, as it offers flexibility, availability, and scalability. Cloud solutions can respond better to changes in demand and can be easily scaled back, reducing technology debt and underutilization. Additionally, cloud vendors typically offer service-level agreements (SLAs) guaranteeing high availability, which is crucial for businesses that require a high level of uptime. Overall, the report emphasizes the importance of developing a comprehensive digital strategy that aligns with business goals to successfully transform procurement into an agile, flexible entity.
