Driving Superior Value Through Digital Procurement Summary Part II (McKinsey & Company)

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The Next Generation of Digital Procurement Tools

Tools to Prevent Value Leakage

Digital Analytics offer new tools Tools in preventing value leakage. Enterprise Resource Planning (ERP) systems execute performance management and the procure-to-pay (PTP) process, and performance management systems.

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Procure to Pay

  • PTP Process Workflow: Future tools will cut processing times and streamline operations by predicting order configurations for regular buyers. Additionally, they will identify potential suppliers and connect them with buyers to transmit digital POs, eliminating the time consuming process of invoice matching.
  • Automated Compliance Management: Quantifying value leakages is a task. For a more effective resolution, smart systems will automatically navigate complex functions like legal stipulations and KPIs based on large amounts of data. This will alert category managers, buyers, and business owners about compliance breaches and their business impact

Performance Management

  • Supplier Performance Scorecards: Category managers will be able to react quickly and confidently by integrating with the supplier X Ray systems previously mentioned to drive decision making based on real time cost, gaps, and performance metrics.
  • Procurement Performance Scorecards: CPOs can track progress by having the ability to consistently monitor strategic sourcing teams, savings opportunities, and manage performance at all levels.


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