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Elevate Every Decision with Intelligent Procurement

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Elevate Every Decision with Intelligent Procurement

  1. 1. From insights to action, the path to extraordinary value starts here. Elevate every decision with intelligent procurement Fast-track to future-ready performance
  2. 2. Copyright © 2021 Accenture. All rights reserved. 2 90% of Chief Procurement Officers (CPOs) say that their organizations are under extreme pressure to be more innovative. procurement leaders needed to be more innovative identifying and contracting with approved, sustainable and reliable suppliers. Disruptions in supply chains during the pandemic meant… Intelligent Operations | Procurement View
  3. 3. Intelligent Operations | Procurement View To drive innovation, procurement leaders need to… Collaborate with business stakeholders across departments to understand their needs and plan together Thread sustainability into all procurement activities Access data-driven insights to predict future trends
  4. 4. Intelligent Operations | Procurement View Procurement leaders realize that increasing operations maturity will elevate procurement’s role in the enterprise and the value it delivers. Future-ready operations deliver value beyond cost savings Copyright © 2021 Accenture. All rights reserved. 4
  5. 5. Intelligent Operations | Procurement View Our research and experience reveals there are four levels of maturity: of procurement leaders report a high level of maturity as their current state; we call them future-ready. 2% Operations on the move Copyright © 2021 Accenture. All rights reserved. 5 of procurement leaders say they have evolved to predictive operations. 61% Each level is grounded in and enabled by progressively more sophisticated technology, talent, processes and data insights. Predictive Stable Future-ready Efficient
  6. 6. Intelligent Operations | Procurement View 1.7x higher efficiency levels for future-ready organizations.1 Advantages of being future-ready 1 Future-ready organizations exhibited 6.4 pp higher profitability and 13.1 percent greater efficiency, on average Source: Accenture Research and Oxford Economics Intelligent Operations Survey, 2020 Other future-ready benefits: improved talent mix, reskilling, customer experiences and ecosystem relationships 2.8x boost in corporate profitability for future-ready organizations.1 More profitable More efficient Intelligent Operations | Procurement View
  7. 7. Intelligent Operations | Procurement View Procurement leaders rate their organizations slightly above average for two of the eight characteristics in wide use or use at scale. Eight characteristics that measure operational maturity 72% 70% 70% 69% 69% 65% 63% 57% 60% 68% 67% 65% 74% 75% 71% 74% Agile workforce Data Business-technology collaboration Analytics Stakeholder experience Automation Leading practices AI Currently in wide use or use at scale (Procurement Leaders) Currently in wide use or use at scale (All Respondents)
  8. 8. Intelligent Operations | Procurement View The agile workforce concept has evolved in the last year as a result of the pandemic and the push to remote work. Procurement leaders also tap into contingent labor and gig economy workforce models to scale resource use with demand. Agile workforce is a bright spot Copyright © 2021 Accenture. All rights reserved. 8 Intelligent Operations | Procurement View
  9. 9. Intelligent Operations | Procurement View Three ways to become future-ready: 03 02 01 Know how to leapfrog maturity levels Know the key steps Know the ultimate goal
  10. 10. Copyright © 2021 Accenture. All rights reserved. 10 Intelligent Operations | Procurement View Know the ultimate goal Think big with strategy at the forefront 01
  11. 11. Intelligent Operations | Procurement View 01 Know the ultimate goal Emphasizing strategy is critical for both CPOs and enterprises CPOs’ North Star is to achieve value beyond cost savings—it is holistic value that impacts all stakeholders across the enterprise, suppliers, customers and even society. Smash the silos 43% of procurement leaders expect business and technology functions to collaborate fully by 2023; just 7% are doing this today. Copyright © 2021 Accenture. All rights reserved. 11
  12. 12. Intelligent Operations | Procurement View Copyright © 2021 Accenture. All rights reserved. 12 01 Know the ultimate goal A major consumer goods business needed to take a strategic approach to transforming procurement on a global scale. By moving to a digital, intelligent operating model that integrated data, digital technologies and procurement talent, the company was able to better focus on customer needs and enhance its ability to respond at the right time with efficient manufacturing, at scale. Ultimately, the company: Intelligent Operations | Procurement View $1B in rapid sourcing saved 99% increased buyer satisfaction scores to over
  13. 13. Copyright © 2021 Accenture. All rights reserved. 13 Intelligent Operations | Procurement View Know the key steps Automate at scale to augment human talent 02
  14. 14. Copyright © 2021 Accenture. All rights reserved. 14 02 Know the key steps There has been a 5X increase in automation over the past three years. Automation makes it possible for CPOs to build a very specialized human and machine workforce. CPOs who expand automation beyond simple, transactional tasks will see its true value. For example, intelligent agents can perform research at the category level, scanning contracts and other reports using natural language processing to pull data together in digestible reports for humans. Automate at scale to augment human talent Intelligent Operations | Procurement View
  15. 15. Data is at the heart of procurement – providing insights that are key for: 67% of procurement leaders say that the company’s operating model is designed based on data rather than on executive experience and intuition. Copyright © 2021 Accenture. All rights reserved. 15 02 Know the key steps • understanding consumption patterns • ensuring that suppliers are following sustainable and ethical business practices • setting best-in-class contract terms and pricing Intelligent Operations | Procurement View
  16. 16. Copyright © 2021 Accenture. All rights reserved. 16 02 Know the key steps 72% of procurement leaders say that their organization has applied cloud at scale. E-procurement solutions have been cloud-based for years, meaning core procurement tasks have been cloud-enabled for a long time. CPOs are well positioned to use their experience to lead the enterprise in its move to cloud. Scale cloud investments Intelligent Operations | Procurement View
  17. 17. Intelligent Operations | Procurement View Copyright © 2021 Accenture. All rights reserved. 17 02 Know the key steps A leading financial institution faced increasing cost pressure, growing uncertainty, and the need for strict compliance with a challenging regulatory environment. An explosion in digital banking capabilities created new risks, making accounts payable a target for would-be fraudsters. The financial institution needed to move away from manual processes to an intelligent procurement operating model that blends human expertise with machine efficiency and uses automation and applied intelligence to streamline repeatable processes. As a result, the company has: Intelligent Operations | Procurement View 80% 58% reduced the cost per invoice by increased the total touchless e-invoices to
  18. 18. Copyright © 2021 Accenture. All rights reserved. 18 Intelligent Operations | Procurement View Know how to leapfrog maturity levels Build ecosystem relationships 03
  19. 19. Copyright © 2021 Accenture. All rights reserved. 19 37% of procurement leaders say that ecosystem relationships have improved over the past three years, noting that the pandemic reinforced the need to keep such partnerships top of mind. Procurement can leapfrog maturity levels by taking advantage of the networks CPOs interact with every day: Embrace partnerships to act faster 03 Know how to leapfrog maturity levels Supplier ecosystem Provider network Intelligent Operations | Procurement View
  20. 20. Intelligent Operations | Procurement View Copyright © 2021 Accenture. All rights reserved. 20 03 Know how to leapfrog maturity levels After spinning off from a chemicals giant, an entrepreneurial chemical company needed to transform an underperforming inherited procurement function. The procurement team plotted a path to world class procurement which was founded on customer-centricity, simpler processes and a clearer focus on what the business users really needed. By moving to an intelligent procurement operating model that integrates data, technologies, talent, and analytics, the company increased the level of data accuracy and on-time payment, while boosting the proportion of touchless electronic invoices. Working with the rest of the business, procurement enabled simpler, faster and smarter buying experiences and provided more accurate Total Cost of Ownership analytics. The result? Procurement can better support business needs and business growth with… Intelligent Operations | Procurement View $350M spend under management
  21. 21. Copyright © 2021 Accenture. All rights reserved. 21 Intelligent Operations | Procurement View Copyright © 2021 Accenture. All rights reserved. 21 As CPOs embrace their growing strategic role, they can lead by example and help the business in its journey to future-ready. The choice to change
  22. 22. Intelligent Operations | Procurement View Copyright © 2021 Accenture. All rights reserved. 22 Learn more at: Accenture.com/FutureReadyProcurement Think Scale Enhance Foster Build big and go beyond cost savings. Financial value is only one part of the value equation that CPOs can deliver to the business. automation and analytics, AI and integrated solutions with leading practices. Tapping into leading technologies is how procurement will get the full value out of data and be a true strategic partner to the business. intuition with the highest-quality, diverse data. Procurement leaders can unlock business value by harnessing external data. a specialized human + machine workforce. The magic happens when technology and human ingenuity meet to transform how procurement works. complementary third-party ecosystem relationships. Partners can help procurement break through its technology gap and focus on core strengths. Now is the time to make your move to intelligent operations. Here’s how: Intelligent Operations | Procurement View
  23. 23. Intelligent Operations | Procurement View Appendix Four levels of operations maturity: Predictive Concentrate mostly on core process improvements and on improving quality and compliance controls. Stable Future-ready Efficient More productive, they incorporate tested methods, such as Lean Six Sigma and process standardization and deploy automation technologies. Focus on how automation can support and augment human ingenuity. They deploy technologies and leading practices with that goal in mind. See increased efficiency and profitability, improved stakeholder experiences and better business outcomes. They are more agile and resilient than others.
  24. 24. DISCLAIMER: This document is intended for general informational purposes only and does not take into account the reader’s specific circumstances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this presentation and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals. About Accenture Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services—all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 537,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com About Accenture Research Accenture Research shapes trends and creates data-driven insights about the most pressing issues global organizations face. Combining the power of innovative research techniques with a deep understanding of our clients’ industries, our team of 300 researchers and analysts spans 20 countries and publishes hundreds of reports, articles and points of view every year. Our thought-provoking research—supported by proprietary data and partnerships with leading organizations such as MIT and Harvard— guides our innovations and allows us to transform theories and fresh ideas into real-world solutions for our clients. Visit us at www.accenture.com/research About Oxford Economics Oxford Economics is a leader in global forecasting and quantitative analysis. Our worldwide client base comprises more than 1,500 international corporations, financial institutions, government organizations, and universities. Headquartered in Oxford, with offices around the world, we employ 400 staff, including 250 economists and analysts. Our best-in-class global economic and industry models and analytical tools give us an unmatched ability to forecast external market trends and assess their economic, social and business impact. Copyright © 2021 Accenture. All rights reserved. Accenture and its logo are registered trademarks of Accenture.

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