PwC Global

4th edition
Digital Procurement
Survey
2022
 On behalf of PwC Partners and employees, we are delighted to present the results of the 4th edition
of our Digital Procurement Survey. This year, this barometer of digital transformation reaches an
international dimension, with over 800 companies from more than 60 countries participating.

Navigating through supply chain disruptions, new remote working methods, soaring prices for many
Executive summary 04 raw materials – procurement has been repositioned more than ever at the heart of companies'
activities following the COVID-19 crisis.

Current state of digital 05 The emergence of these new risks has changed the perception of digital transformation by
procurement procurement departments. While digitalisation continues to progress among companies in all
sectors, it is now becoming a necessity to overcome the challenges of cost control, supply chain
traceability and supplier relation securitisation.
Future state of digital 15
Digital roadmaps are also embracing innovative use cases, such as CO2 emissions tracking,
procurement indicating that purchasing departments are preparing for the shift to sustainable development.

Geographical overview 24

Industry benchmark 26

Dr Norbert F. Fischer Isabelle Carradine Pinto

PwC Germany PwC France & Maghreb
Partner Partner
Global Lead of the PwC Procurement Strategic Supply Management
Consulting Practice

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PwC Digital Procurement Survey - 4th edition
Survey sample:
A global insight into the procurement professionals' world

800+
26% 29%
Very large company Large company

procurement professionals (Over €10Bn [>USD12Bn]

revenue and/or over 5,000 employees)
(€1.5Bn to €10Bn [USD1.8Bn
to USD12Bn] revenue and/or
over 5,000 employees)

Company
Profiles

43% 15% 30%

64
Service companies Small company Medium-sized company

countries worldwide
(Less than €50m [USD60m] (€50m to €1.5Bn [USD60m to
Revenue and/or less USD1.8Bn] revenue and/or
than 250 employees) less than 5,000 employees)

on
6 continents Business
Sectors 4%
Information Systems
(IS) Procurement
Project Manager 6%
25%

4
General & Financial Directions
Procurement Director

themes covered, including: 8%

Supply chain and operation
► The current vision of your procurement organisation 57% functions

Industrial companies
► Process automation Participant
Profiles 13%
► Digital procurement tools Category Purchaser/Buyer

► Roadmap and future transformation

23%
Purchasing Manager/
Project Manager
21%
Chief Procurement Officer (CPO)
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PwC Digital Procurement Survey - 4th edition
PwC Global Digital Procurement Survey - 4th edition
Executive summary

Current state of Future state of

digital procurement digital procurement

► Digital transformation is progressing on CPOs’ ► Procurement departments set very ambitious digitalisation objectives for 2025, with an
roadmap (+6 points), of which cost reduction and average target of 72% of digitalisation. However, perception of actual digitalisation rates of procurement
strategic sourcing are still the spearhead (61%). processes ran into COVID-19 reality, with a 6% decrease to reach an average 41% digitalisation rate.

► Digital transformation is now also motivated by ► Middle market companies plan to strongly increase their investments in procurement digital
risk management and compliance, in addition to transformation (+50% between 2020 and 2022), while large and very large companies will maintain their
traditional objectives of process optimisation and cost budgets.
reduction.
► CPOs are focusing their roadmap on Source-to-Pay digitalisation as well as on
► Source-to-Pay digitalisation has become the innovative use cases of ESG and supply chain traceability. The trends tend to a shift of digital
‘new normal’ for procurement departments, as 90% of roadmaps: focusing on proven added-value use cases while shelving exploratory digital use cases.
respondents use either S2C nor P2P solutions and 77%
use both of them. ► The tracking of suppliers’ CO2 emissions is at a starting point to be a ‘game-changer’ for
procurement departments: already 27% of companies use or experiment with this emerging use case within
► 80% of companies with a high level of their organisation.
process digitalisation succeed with value
creation thanks to data availability. However, ► The applicability of blockchain in procurement processes still needs to be clarified for
55% of companies still struggle leveraging 59% of procurement departments. However, they see it as a vector of valuable improvements for the entire
their data. supply chain process.

Find out more in the survey:

|4| Industry
| 4 | benchmarks, PwC best practices, geographical overviews, …
PwC Digital Procurement Survey - 4th edition PwC Digital Procurement Survey - 4th edition
 1 Current state of
digital procurement

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PwC Digital Procurement Survey - 4th edition
Cost reduction and strategic sourcing are still the spearhead
of CPOs, while digital transformation is expanding on
roadmaps

Top #1 strategic priority of procurement departments

61% of procurement professionals keep Digital transformation is strongly anchored 0% 10% 20% 30% 40% 50%
focusing on cost reduction (37%) and strategic in procurement departments’ agendas
30%
sourcing (24%) to address the challenging context Cost reduction 43%
37%

20%
Shortages, price increase, inflation, health crisis – ► It is ranked third among the top priorities, with an Supplier sourcing and SRM 24%
24%
procurement departments are strongly focusing on their core increase of 6 points compared to 2020
objectives within the company in these times of increasing Digital transformation
17%
► It is mentioned by half of procurement 12%
threats on supply chains. 18%
professionals as being an important priority for
12%
New challenges appeared regarding costs, with the coming years Risk and crisis management 9%
skyrocketing prices of raw materials, and decrease of activity 11%
The necessity of digital has become mandatory to
for some sectors calling for drastic cost saving objectives. 2%
enable procurement departments to navigate a ESG/CSR 3% 2019 2020 2022
4%
Building partnerships with suppliers, reshoring strategic context of rising uncertainty and digitisation of all
PwC Global Digital Procurement Survey, 4th
suppliers and reviewing supplier panels to find alternative business exchanges. It helps at both reacting to Innovation 4%
7%
edition (base 800+ respondents)/*2020: source
sources are key initiatives to secure needed supplies. immediate risks and at generating long-term 4% PwC Digital Procurement Survey 3rd edition
(base 400+ respondents)
procurement transformation. 12% > Question: What are the top 3 strategic priorities
Talent retention and upskilling 5% of your Procurement department for the year to
2% come? (Ranking from 1 to 3)

Most-named strategic priorities of procurement departments among their Top #3

Procurement departments set aside talent management and innovation to focus on short-term
Digital
strategic priorities
transformation
Cost reduction Supplier
51% sourcing Despite their growing crucial roles in added value creation for the overall company, these priorities are mentioned by
69% 37%
Innovation less than 20% on CPOs’ agendas.
18%
Risk and crisis The current context of crisis required a focus on urgent matters such as securing the supplies, managing supply chain
SRM management Talent and
risks and negotiating prices, while plans for deep transformation (including ESG/CSR) became secondary.
ESG/ upskilling
It is especially true regarding talent management, which shows a strong and consistent deficiency over the years.
39% 38% CSR 16%
However, constantly evolving companies, ways of working and the digital environment raise the necessity of considering
32% talent management to be a long-term investment for a sustainable future.

PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents)
Question: What are the top 3 strategic priorities of your Procurement department for the year to come? (Ranking from 1 to 3)
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PwC Digital Procurement Survey - 4th edition
In addition to traditional objectives of process optimisation and
cost reduction, digital transformation is now also motivated by risk
management and compliance

Main drivers for procurement digital transformation

of the companies declare process optimisation as a main driver for digital
>57% transformation …
Procurement professionals are striving for process efficiency and transparency through their digital Process efficiency
transformation initiatives. Indeed, a digital transformation project mostly aims at streamlining and simplicity 59%
processes as well as business practices. It requires a deep knowledge of procurement processes
and defining an optimised target operating model that will suit business objectives and solution
capabilities. Process transparency,
traceability and fairness 57%
… that reveals a strong user-centric consideration
While talent management seems to be a declining strategic priority for CPOs, easing the pressure Cost savings 47%
on the workforce remains an important driver of procurement digital transformation. Optimising
processes will foster business efficiency as well as user experience and allow talent to focus on
higher, added value tasks. Crisis and risk
management 19%

of companies aim to achieve cost reduction through digitalisation Compliance 16%

47% Aligned with the high priority level of cost reduction, it is a key driver for digital transformation. It
can be achieved through the use of sourcing modules and by leveraging supplier data to identify 0% 10% 20% 30% 40% 50% 60%
savings opportunities.

PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents)
> Question: What are the main drivers for implementing a Procurement digital transformation? (select 2 choices)

Risk management and compliance appear as upcoming digital transformation

drivers CPO vision
COVID-19 highlighted the added value of digital operations, while challenging companies to ensure
business continuity. It also made risks more tangible, especially for procurement and supply chain
functions. Managing risks is then pointed out as an important driver for digital transformation and
could increase over the coming years.
The main drivers for procurement digital
transformation are agility, greater control and
Compliance is also mentioned as being a driver in itself for digital transformation. The growing consequently more efficiency.
requirements for transparency, implied by regulations and triggered by customers, are steadily
gaining traction and making compliance an essential for all companies.
CPO of a very large company in the Banking,
|7| Insurance, Financial Services sector
PwC Digital Procurement Survey - 4th edition
Source-to-Contract (S2C) and Procure-to-Pay (P2P) solutions
are the ‘new normal’ for procurement departments

Digital solution equipment rate of procurement departments

P2P solutions 86% equipment rate 77% no

of companies are already onboard: S2P digitalisation is now a must-have and
longer a nice-to-have
70% In-house 16% 14%
Market P2P solution No solution
P2P solution The great majority of companies are already However, among the companies using a
equipped with a P2P or S2C solution, or even dedicated solution for S2C or P2P, around one in
both for 77% of them, confirming the shared five companies is equipped with an in-house
S2C solutions 81% equipment rate vision on the fundamental aspect of the solution (16% for P2P and 20% for S2C). The
digitalisation of these processes. evolving IT ecosystem will complexify the
61% In-house 20% 19% Transforming the Source-to-Pay processes has operability of such solutions in time. These in-
Market S2C solution No solution
S2C solution been a long-lasting effort and is today the new house solutions will be more and more difficult to
normal for procurement departments. maintain.

S2P solutions (market and in-house)

77% 9% 4%
No
10%
Both S2C and P2P solutions P2P only S2C
solution
only Use of S2C and P2P solutions per company profile Represent 78% of the
non-equipped companies

PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents) Small companies 58% 10% 32%
Questions: Which digital Procurement solution does your company currently use for Source-to-Contract process? Which digital
Procurement solution does your company currently use for Procure-to-Pay process? Medium-sized
72% 17% 11%
companies

Large companies 80% 16% 4%

companies are still non-equipped, but 65% of them plan to catch up by
1/10 investing in S2P solutions by 2025 Very large companies 88% 8% 4%

Ten percent of companies use neither a S2C nor a P2P solution to manage their procurement 0% 20% 40% 60% 80% 100%
processes. It appears that the adoption of these solutions is proportional to the size, the number
of users, and to the investment capacity of companies. Among the non-equipped companies, % of companies using both
either a S2C or a P2P solution not using any S2C or P2P solutions
78% are small and medium-sized companies. S2C and P2P solutions

However, small and medium companies plan to catch up with larger companies by prioritising PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents)
S2C and P2P transformation on their digital roadmaps, supported by strong investments. > Questions: Which digital Procurement solution does your company currently use for Source-to-Contract process? Which digital
Procurement solution does your company currently use for Procure-to-Pay process?

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PwC Digital Procurement Survey - 4th edition
Benefits from procurement digital transformation
go beyond Source-to-Pay processes

Which procurement process improved the most with digitalisation?

The most common perception of improvements brought by digital solutions is on the end-to-end
Source-to-Pay processes

Procure-to-Pay As 80% of respondents are equipped with S2C and P2P solutions, the greatest improvements brought by digital
(end to end) 42% are, not surprisingly, focused on the processes addressed by these solutions. P2P, the most digitised

60%
transactional process, represents the first step on the path to procurement digital transformation. P2P provides
Source-to-Contract visible short-term ROI while being less cumbersome than others to digitalise.
(end to end) 18%

Spend Analysis 13%

However, about 40% of respondents perceive the best added value through spot processes
Supplier Management 9% The digital transformation of procurement departments does not limit itself to the S2C and P2P processes. It
can cover the procurement processes from a 360-degree perspective, from strategy to execution to reporting.
Contract Lifecycle Spend analysis, SRM, CLM, performance and risk management are fully part of the role of procurement
Management 7% departments within the company and can be strongly enabled by digital transformation.
Performance
Management 6%

38%
and Monitoring
Perception of improvements on process is the reflection of the digital solution vendor market
Risk Management 3% The digital solution market is composed of two main categories of vendors: the full suite S2P editors and the
specialists on specific processes.
Other 2% The specific solution providers are often best-of-breed solutions in their segment and will allow a
comprehensive coverage of procurement processes. However, implementation can seem more complex, as
0% 10% 20% 30% 40% 50% integration with numerous other systems must be developed. This pain point can be addressed by full suites,
PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents)
which work at developing complementary modules through organic or external growth.
Question: In which area of the Procurement process did you identify the greatest improvement brought by your digital tool? (please
select 1 choice)

PwC best practice: ROI consideration

Respondents responding ‘Other’ to this question note having difficulties identifying the improvements brought by digital transformation due to unclear vision on ROI.
The digital transformation of procurement departments is to be considered an investment and should be based on a business case for validating the opportunity.
Companies should make sure that the added value tracking plan is prepared for monitoring the results of such an initiative.
Make sure the added value creation is tracked along the digital transformation. It is advisable to start the transformation with less complex procurement processes.
This results in higher acceptance as well as immediate efficiency gains.
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PwC Digital Procurement Survey - 4th edition
Data management is still a struggle for many procurement
departments, whereas process digitalisation is a significant
driver of data quality and leads to data value creation

Percepted quality level of procurement data depending on process digitalisation rate

55%
82%
82% of companies with a high level of process digitalisation
High digitalisation rate create value from their procurement data
(10% of respondents)
36% 46% 18%

The ability to exploit and leverage data is directly linked to the digital maturity of
Medium digitalisation rate 10% 39% 51%
(60% of respondents) procurement departments, making digitalisation a real driver of data quality management.
Indeed, more than 75% of companies with a low level of digitalisation within their
procurement department declare having difficulties leveraging their data.

Low digitalisation rate 4% 19% 77%

(30% of respondents)

0% 20% 40% 60% 80% 100%

Distinctive business enabler of respondents struggle to make the most of their data,
55%
Easy to leverage Difficult to leverage
(very high quality)
showing that a lack of process digitalisation makes it difficult
to use data for decision making
PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents)
Question: How would you assess the quality level of your Procurement data? (suppliers, articles/SKUs, spend, contracts, ...)
Processes digitalisation rates: High >75% - Medium 25% to 75% - Low <25%
The majority of respondents struggle with data management, while only 10% claim that the
quality level of their procurement data is high enough to be a real distinctive business
enabler.
Throwback to 2017
In the 2017 edition of the Digital Procurement Survey, 43% of respondents stated that their
biggest challenge in using procurement data analytics was its very low quality, whereas

43% Poor existing

data quality 33% Poor access
to relevant data
34% noted a lack of expertise in leveraging their data. The amount of data multiplies from
year to year, complicating the levels of analysis and processing, thus requiring a system of
continuous improvement in data management.

34% Lack of skills in

procurement staff
19% Inability to identify
relevant data
| 10 | 10
PwC Global Digital Procurement Survey, 2017 edition
Question: What are the biggest challenges in using Procurement data analytics? (multiple choices) PwC Digital Procurement Survey - 4th edition
PwC’s best practices:
Handling data management for procurement departments

Data challenges for the The skills needed to improve data value creation rely on:
procurement departments:

► Growing amount of digital

exchanges among procurement
ecosystem (purchasers, suppliers,
internal clients, third parties, etc.)
which increases the information Data strategy Data management Data analytics Data platform
flows and data governance

► Structure of data: complexity of Establish a roadmap and prioritise Have up-to-date and easily Automate analysis ‘on the flow’ to Develop a data hub (not
purchased goods and services, topics according to the company's available repositories for the have the ability to serve long-term necessarily a data lake) that
and multiplication of stakeholders strategy business performance supervision as well as focuses on data sharing and flow
and intermediaries can create real-time alerts in case of rather than storage
Know your purchasing maturity as Master standard market references emergency
unstructured data
well as that of one's operational and repositories Ensure interconnection with other
teams, whether they are buyers or Develop capabilities to process business Information Systems
► Manage, consolidate, maintain other roles in the organisation Maintain and demand data quality unstructured data such as
multiple sources of data such as from provider to avoid ‘garbage in’ contracts, technical documents and Supervise the company's inputs via
large catalogs, supplier data, specifications, etc. the use of ‘digital twins’
spend data, etc. Distribute roles and responsibilities
between procurement, supply, Leverage transactional data when
► Leverage the potential of data for operations and IT supplier portal is available
sourcing improvement;
automation of market research
can lead to valuable competitive
advantage A company’s value stream starts with its purchases. It is therefore necessary
to have rigorous and complete control of all the physical and digital assets.
Marc Damez-Fontaine, PhD.
Director, Data & AI, PwC France & Maghreb

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PwC Digital Procurement Survey - 4th edition
Third-party support is an enabler, but focusing on internal
upskilling and continuous improvement will support long-term
digital transformation

Need for external support in procurement digital transformation

From roadmap definition to implementation support, the most named drivers for
calling an external support cover the complete digital transformation process
Digital solution implementation support 53%
Technology/digital strategy roadmap 50% Companies have a need for diverse expertise to help achieve the digital transformation of their
Change management and employee procurement department. Among this required expertise, digital strategy roadmap support is named by
digital upskilling 47% 50%. This may reflect a lack of clarity regarding which direction their digital transformation should take and
Identification of innovative solution and of the right way to approach it. Building a strong and realistic roadmap is a key success factor in
benchmark 36%
implementing a sustainable and effective digital transformation.
Adjustment to existing systems 33%
Master data and spend transparency 32%
Digital transformation is not all about technology. Upskilling and developing a
Selection of the right vendor 27% digital culture are key to ensuring a sustainable and resilient transformation
Feasibility review 19%
0% 10% 20% 30% 40% 50% 60%
Digital transformation requires specific skills to develop and maintain to secure a successful implementation
and sustainable adoption by users. In the long term, developing employees’ digital skills will support an in-
PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents) depth change in the organisation.
> Question: Where do you see the greatest need of external support in Procurement digital transformation? (please select 3 choices)
It can be enabled by creating a digital culture, through engaging employees in roadmap definition, taking
the digital projects from a collaborative approach, and involving the teams in transformation projects.
CPO vision: needs for external support

“External benchmarks” “Process re-engineering”

A third-party support in digital transformation projects will bring specific
CPO from small company in the Professional CPO from large company in the Healthcare knowledge and know-how
Services sector and Pharmaceuticals sector

Even if internal upskilling is a key lever to go digital, third-party supports can bring a specific added value in
a more immediate way. In addition to external resources to strengthen a project, their external position
“Leading and obtaining buy-in “Lessons learnt from similar creates an ability to challenge current beliefs in the organisation. Their experience provides robust
from key stakeholders for change implementations” feedback on transformation projects, benchmarks and knowledge about the digital vendor market, and best
management” CPO from medium company in the Public practices regarding processes and the change management approach.
Procurement Director from very large sector
company in the Public sector
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PwC Digital Procurement Survey - 4th edition
Cybersecurity is a rising concern for all companies, and
procurement departments are not spared from it

Procurement perception of cybersecurity

Procurement departments are not immune to cybersecurity concerns: 90% of them declare
5% being concerned by cyber threats and 27% of them already experienced an intrusion.
Cybersecurity breach
identified
24% Malware via software update, attacks on cloud services, ransomware, business email compromise, attacks on
the supply chain – cyber threats are numerous and can come from many sources, such as cyber criminals,
Never experienced
vendors and third-party sources, and even past and current employees.
10% cybersecurity issues but
Experienced
cybersecurity Procurement departments are a preferential witness of business commercial exchanges and are then exposed
Not a concern for the organisation is intrusion and to these risks specifically through the suppliers’ payment process. They then have a significant role to play in
organisation concerned initiated corrective
protecting their company, for which a first step would be to align process compliance with company standards.
90% measures

58% Declare being concerned

3%
Experienced cybersecurity Company size is not an obstacle for cyberattacks: 63% of the companies that already
intrusion, but no corrective
measures have been initiated
experienced intrusion are large and very large companies, and 37% are small and medium
companies.
PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents)
> Question: What is your degree of concern in terms of cybersecurity within your Procurement department?

CEO perspective CIO perspective

Cyber threats are on the rise, according to CEOs Shrink the large blind spot hiding the risks in your business
Cyber has fast become a major source of anxiety. Yet despite myriad challenges, some organisations are starting to
relationships
create a blueprint for the securable enterprise. They focus on establishing security and privacy as operational goals and You can’t secure what you can’t see, and most respondents to the PwC 2022 Global
business imperatives; hiring a chief information security officer; empowering this individual to create cross-functional Digital Trust Insights Survey seem to have trouble seeing their third-party risks — risks
teams; making cybersecurity part of other key decisions, such as acquisitions and product launches; and reducing obscured by the complexities of their business partnerships and vendor/supplier
complexity through steps such as vendor consolidation to minimise nodes of vulnerability. networks.
2022 Only 40% of survey respondents say they thoroughly understand the risk of data
2021 breaches through third parties. Nearly a quarter have little or no understanding at all of
2020 Source: PwC 23rd, 24th, 25th Annual
Global CEO Survey these risks — a major blind spot which cyber attackers are well aware of and willing to
49% > Question: How concerned are you
exploit.
about these potential threats to your
47% #1 concern organisation’s growth prospects?
33% #2 concern (‘extremely concerned’ responses) Source: PwC, 2022 Global Digital Trust Insights, October 2021.
#4 concern | 13 |
PwC Digital Procurement Survey - 4th edition
PwC’s best practices:
Approach cybersecurity in procurement departments

Procurement departments are catching up on digitalisation through Still too often, cybersecurity is perceived by procurement departments as an IT risk that does not
significant investment. This digital transformation, coupled with the concern them, remaining a secondary issue after the digitalisation of working methods and
rise of connected technologies, is transforming the means of access tools, whereas a few fundamental principles would make it possible to reduce cyber risk:
to information and data, both within the company and with its
partners, and is increasing the exposure and vulnerabilities of
information systems (IS). ► Incorporate cybersecurity natively by relying on the company's internal experts, from the design stage of any
initiative involving IT/digital technology to protect against cyber risks from the outset.
The transformation of working methods and tools is leading to ► Keep control of security, being careful not to make the classic mistake of relying solely on vendors of digital
the emergence of cyber risks that can have a direct impact on solutions. Regularly check that these solutions respect the commitments made in terms of data protection,
the operational activities of companies, particularly in terms of: access control and security supervision.
► Secure the entire IT chain, particularly unstructured data spread across the information system or on exchange
platforms with partners.
► Map the data and tools used, whether internal or external, as you can only protect what you know.
► Finally, simplify the tools and services used as much as possible, as any complexity increases the exposure
to new vulnerabilities to technical debt.
Productivity
The increasing dependence on
digital tools (marketplaces, Competitiveness
electronic signature, etc.)
could, in case of unavailability, Procurement departments have a
affect the proper conduct of variety of data that may be of interest to
business. malicious actors and face the same The productivity brought by new tools and
risks as the whole company (e.g. theft,
espionage, sabotage). Data that is technologies can be a lure if the associated
binding on external third parties is the
main data at risk, particularly data risk is poorly controlled.
relating to their business activities (data
from calls for tender, studies and plans,
negotiated prices, etc.).
Frédéric Malagoli
Partner, Cybersecurity, PwC France & Maghreb

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PwC Digital Procurement Survey - 4th edition
 2 Future state of
digital procurement

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PwC Digital Procurement Survey - 4th edition
Perception of actual digitalisation rates of procurement processes
ran into COVID-19 reality, yet without discouraging ambitions for
coming years

Digitalisation rates of procurement processes

Target rates
80% Process digitalisation rates have been downgraded by procurement
professionals, by 6% on average
70%

Optimism on actual digitalisation Procurement departments slowed down

60%
rates has declined following the their digital transformation in order to
COVID-19 COVID-19 crisis focus on immediate challenges
50%
Indeed, the global situation characterised by While crisis priorities appeared, such as cost
-10%
40% important supply chain pressure and the pressure, supply chain risks and supplier panel
-7% 76% necessity for remote collaboration raised review, procurement departments put their
69% awareness of the perception of digitalisation digital transformation projects on hold.
30% -2% rates. Possible blind spots over procurement
The efforts concentrated on managing
49% processes have been identified during the
46% immediate risks rather than on longer-term
44% crisis, and the perceived scope of digital
20% initiatives.
36% 36% 35% transformation has been extended.
31%
24% The COVID-19 crisis challenges the quality of
10%
procurement digital transformation,
46% 43% enlightening both effective achievements and
0% missing bricks.
2017 2018 2019 2020 2021 2022 2023 2024 2025

Strategic processes:
► Strategic sourcing, supplier search, contract management, predictive processes, supplier relationship However, procurement departments set very ambitious digitalisation
management, risks anticipation. objectives for 2025
Transactional processes:
► Supplier data management, tender management, catalogue management, engagement processes (P2P).
The COVID-19 crisis also raised the necessity for going digital to properly manage and address the
supply chain and procurement risks in a resilient manner. Procurement professionals will accelerate their
Purchasing reporting: transformation in the coming years, and get closer to a 360-degree procurement digital approach, with
► Spend analysis, business intelligence, economic performance management. digitalisation rates around 70% for both strategic and transactional processes.

PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents)
Questions: For each process type (transactional, strategic, reporting): Today, what is the current level of digitalisation of strategic processes within your
Procurement department? By 2025, what will be the targeted level of digitalisation of strategic processes within your Procurement department?
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PwC Digital Procurement Survey - 4th edition
Business transformation, including process, organisational
and human aspects, remains the key success factor for
digitalisation

Key success factors for implementing a digital procurement solution

Organisational & human aspect

2020 2022
Involvement of internal stakeholders
Change management investment 54% 57% Organisational and human aspects remain the most important key success factors for implementing a digital
(business players, sponsors, etc.)
procurement solution, maintaining their position in the top three. They are part of a comprehensive
Adaptation of existing processes Adaptation of existing processes business transformation.
54% 51%
to the digital solution to the digital solution Their importance has been confirmed with an accelerated awareness of the crucial role of cooperation,
Business
induced by the health crisis and remote working models, which led ‘Involvement of stakeholder’ to be named
Involvement of internal stakeholders transformation
Change management investment the most significant key success factor.
(business players, sponsors, etc.) 44% 41%

Review of best practices to modify

40%
existing processes

Vendor selection 30% Vendor selection 34% Process & practices

Technical
Integrator/project management Integrator/project management aspects The critical role of business process re-engineering is confirmed once again this year as being a key
support selection 29% support selection 30% component of a successful digital transformation.
These process-oriented key success factors are aligned with the initial reasons for driving digital
Consideration of corporate culture 26% Consideration of corporate culture 23% transformation, which are process optimisation and efficiency.
Adaptation of processes must be considered from a user and a solution perspective to be successfully and
sustainably implemented, all while relying on best practices inspiration.
Supplier enrollment 21% Supplier enrollment 20%

PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents)
> Questions: In your opinion, what are the key success factors for implementing a digital Procurement solution? (please select 3 choices)

Vendor & integrator selection

CPO vision Titre
Technical aspects, such as the integrator or the chosen solution, are secondary success factors. The focus
on process re-engineering and stakeholder buy-in, instead of solution features and capabilities, reveals that
even the best tailored solution must be implemented considering the above.
Procurement management must be fully integrated
into the organisation’s end-to-end processes.

Procurement Director of a very large company in the Healthcare industry

| 17 |
PwC Digital Procurement Survey - 4th edition
Investments will significantly increase over the next
two years for small and medium companies

Annual investment forecast for the digital transformation of procurement departments over the next two years
42% of procurement professionals do not have a clear vision of their
investments 2020 2022
Many professionals claim they do not know the investment budget of their company
within procurement transformation, 15% of them being CPOs. Apart from the confidential
Average
(all company size combined)
€965k +33% €1.28m
nature of this information, this important statistic reveals that many procurement
departments do not yet have a comprehensive vision on their digital roadmap.
Small companies
revenue of less than €50m and/or €270k +44% €390k
fewer than 250 employees
On average, companies will invest €1.28m annually in the coming years to
support their digital transformation
Medium-sized companies
revenue of between €50m and €1.5bn and/or €420k +55% €650k
These ambitious investment forecasts support the implementation of procurement more than 250 employees
departments’ digital roadmaps. They show the expected tangible ROI and, therefore, the
importance of the digital transformation of the procurement function. Large companies
revenue of between €1.5bn and €1.23m -1% €1.22m
€10bn and/or more than 5,000 employees

CEO vision Very large companies

revenue of over €10bn and more €2.53m -4% €2.41m
than 5,000 employees
In 2021, nearly half of CEOs planned to increase their rates of digital
investments by 10% or more
PwC Global Digital Procurement Survey, 4th edition (base 400+ respondents) / *2020: source PwC Digital Procurement Survey 3rd edition (base 400+ respondents)
> Questions:By 2025, what will be your annual investment level dedicated to your Procurement digital transformation? (Investment can include: e.g. e-Procurement
license, maintenance fees, upskilling training, etc.)
Increase moderately 3-9% Increase significantly >10%

34% 49% While large and very large companies maintain their investments over the years, middle-market
companies (small and medium) plan to strongly increase their investments in digital transformation
Today’s digital focus contrasts with the situation in 2010, after the global financial Compared with 2020 results, small and medium-sized companies show an increasing interest in procurement digital
crisis, when the biggest investment priority for CEOs in our survey was gaining cost transformation with about 50% of budget augmentation.
efficiencies. After the slowing of digital transformation due to COVID-19, these companies are now very willing to support their digital
> Question: How do you plan to change your long-term investments in the following
transformation with actual investments.
areas over the next three years, as a result of the COVID-19 crisis?
Source: PwC 24th Annual Global CEO Survey | 18 |
PwC Digital Procurement Survey - 4th edition
 The technological roadmap of procurement departments is
abandoning the experimenting mode, with decreasing interest in
emerging technologies such as blockchain and AI

Targeted technologies to invest in by 2025

Procurement professionals are no longer in an experimenting mode, as many
technologies see a declining interest
88%
S2P, Procurement IS 75%
66% Procurement technology of Source-to-Pay solutions and data analytics are still drawing interest on procurement
88% professionals roadmaps. Transformation roadmaps show a waning interest in robotics, AI and blockchain over
Data Analytics 81% the years.
62%
Investment forecasts are concentrating on the proven added value technologies providing applicable use
62% cases, while the hype around new technologies is running out of steam.
Robotics 38%
35% If technological investment is not an objective in itself anymore, these technologies are nevertheless being
64% implemented in more and more companies through full suite solutions that integrate technology like AI, for
Artifical Intelligence 42% example.
30%

Expectations Technology maturity curve

Process Mining
17%
Blockchain
36%
Blockchain 24%
13% 2019 2020 2022 Peak of interest Data Analytics
Robotisation S2P solutions
0% 20% 40% 60% 80% 100%
Artificial
2022: PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents) Intelligence
2020: PwC Digital Procurement Survey, 3rd edition (base 400+ respondents) Maturity
2019: PwC Digital Procurement Survey, 2nd edition (base 200+ respondents)
> Question 2022: By 2025, which of the following technologies will be the target of investments as part of your Procurement digital transformation project?

The number of targeted technologies on roadmap is becoming rationalised over the years

Average number of technologies on procurement departments roadmaps

2019 2020 2022 Trough of disillusionment

Time
3.6 2.9 2.2 Arrival of a new technology on the market 2019 2022
Technologies Technologies Technologies | 19 |
PwC Digital Procurement Survey - 4th edition
 Blockchain can bring very significant value; however, it is
inspiring fewer procurement professionals due to its unclear
applicability

Blockchain is not perceived as a relevant digital use case for procurement Reasons for not testing or using blockchain
operations
While the number of companies testing or using blockchain remain stable, the share of Lack of skilled High complexity of the
respondents who do not perceive potential added value in this technology is increasing. resources internally technology
No identified 39% 19%
Blockchain is on the slow path of maturity, which includes a disillusionment on the initial hype use cases
around a new technology. The inflated expectations are decreasing for procurement Unclear added value High implementation
professionals, who expect more tangible use cases applicable to their field. 45%
and benefits costs
37% 17%

Perception of blockchain by procurement professionals 2022: PwC Global Digital Procurement Survey, 4th edition (base 600+ respondents)
> In your opinion, what are the main barriers for using Blockchain in your Procurement department? Select 1 to 3 answers (only if responded “I cannot appreciate the potential added
value of Blockchain for my Procurement department” or “I identified an opportunity, but no relevant offer is available on the market” at previous question)

2020 2022
Being tested or
13% regular use 12%
Unidentified or unclear opportunities and lack of skilled resources are the main entry barriers to
Opportunity benefitting from blockchain technology
identified but no 29%
37% For procurement departments that have not yet tested or implemented blockchain methodology, some entry barriers are still
current use preventing them from deploying the technology. Blockchain suffers from a lack of understanding of the technology, then of its cost
and implementation requirements, and procurement professionals struggle to identify use cases and value creation opportunities.

However, it is a vector of valuable improvements on procurement and supply chain processes

No appreciation of 59%
50% Thanks to its transparent, reliable and secure data storage and transmission technology, blockchain can allow buyers to gain agility
added value of and simplicity throughout the procurement process as well as in the overall extended supply chain operations. For instance:
blockchain
Monitor supply chain flows,
Draw a map of n-tier suppliers
including complex supply Create a platform to certify Generate a digital ID for each
to protect the company's
chains (medical devices, the origin of components of of the different stakeholders
sovereignty in the event of a
aeronautical or automotive products or services in the supply chain
2022: PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents) systemic crisis
2020: PwC Digital Procurement Survey, 3rd edition (base 400+ respondents) industries, etc.)
> Question 2022: “Blockchain - Supply Chain traceability & supplier knowledge” - What is your
opinion about this use case applied to your Procurement department?
| 20 |
PwC Digital Procurement Survey - 4th edition
Procurement departments shifted their digital roadmaps,
focusing on proven added value use cases while shelving
exploratory use cases

Presence on procurement roadmaps of digital use cases: targets to invest in by 2025

Supply chain traceability is the only
Fundamental use cases are the developing use case that gained
target of increasing investments Procure-to-Pay digitalisation and 38% momentum on procurement roadmaps
dematerialisation of invoices 47%

Data analysis and visualisation

39% Supply chain traceability moves up by a strong 7
These use cases related to core procurement 40% points, arising from COVID-19 awareness raise, while
activities were already the main targets of digital risk management sees a decline of 4 points
transformation in 2020, and they are on the Source-to-Contract digitalisation
34%
compared to 2020. Traceability could overlap risk
39%
roadmap of even more companies this year. management in parts of the supply chain where a
procurement departments are more likely to Automation of 32% higher transparency helps companies to assess
invest in proven added value use cases. administrative tasks 34% potential disruptions, following the objective of
50% of companies declare process optimisation achieving an extensive digital supply chain tower.
as a main driver for digital transformation and Supply chain traceability 24%
and supplier knowledge 31%
confirm this objective by setting S2P use cases
and automation as top investment targets. 26%
Risk management
22%

27%
Collaborative portal
19%

Most of developing and high- Marketplaces

16% Sustainability use case makes a good
16%
potential use cases are de-prioritised entrance on procurement digital
in the short term Smart sourcing, 22% roadmaps
relocation sourcing 15%

Many use cases that showed interesting 0% The use case for monitoring CO2 emissions from
CO2 emissions tracker
development perspective have been de- 13% procurement perspective makes its first entry in the
prioritised by procurement departments for the list with 13 % of respondents claiming it to be on their
15%
coming years. Virtual purchasing agent
9% 2020 2022 digital roadmap for the upcoming two years,
These use cases are seen as a risky ROI that supporting the general growing interest in applying
may not be worth the effort of implementation 0% 10% 20% 30% 40% 50% sustainability in procurement.
over a three-year time frame at this time.
2022: PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents)
2020: PwC Digital Procurement Survey, 3rd edition (base 400+ respondents)
> Question 2022: By 2025, which use cases will be the priority targets in the digital transformation project of your Procurement department? (up to 3 choices)

| 21 |
PwC Digital Procurement Survey - 4th edition
CO2 tracker emission solution can be a game-changer for
sustainability application in procurement departments

Procurement perception of CO2 emission tracker use case

Sustainability will be a future game-changer, as many companies (27%) already

implemented or experienced an emission tracking system 40% 27%
Cannot appreciate the potential Already used or experienced
Many respondents already started the offensive. Tracking CO2 emissions is becoming added value of this use case for the use case
regulatory and socially mandatory. Therefore, procurement has the opportunity to play a key my procurement department
role in this initiative. Gathering relevant supplier CO2 data and mapping supply chain
emissions are the first steps towards making procurement a valuable business partner for the
company and the overall society. 4%
Are part of a CO2 emissions tracker
consortium with cross-company
objectives

The advantage of tracking supplier’s emissions is recognised but lacks in

execution due to market offering 7%
Have regular use of a CO2 emissions
Another 30% of the respondents are already facing the change to net zero. However, they are tracker
lacking a structured way to tackle the problem and are in need of a tool.
33%
Identified an opportunity, 16%
Ran POCs and/or experiments in CO2
but no relevant offer available emissions tracker
on the market

40% of the companies do not perceive interest in tracking supplier CO2 emissions
PwC Global Digital Procurement Survey, 4th edition (base 800+ respondents)
Even though sustainability and thus tracking CO2 emissions are prevalent in industry > Question: “Tracking of suppliers' CO2 emissions in your Supply Chain” - What is your opinion about this use case applied to your Procurement department?
discussion, the value-add often remains unclear, especially monetary savings. Starting with
business cases can help define the use case:
 Limit the rise of CO2 taxes through vehicle fleet motorisation review
 Assess supplier portfolio location to review transportation practices and gain better TCO
control through limited price volatility
Industry vision
 Optimise CO2 footprint to comply with Emission Trading System in EU and avoid additional
charges
 Perform valuation of reputational improvement with customers Top 5 industries using or experiencing CO2 emission tracker use case

38% 35% 33% 30% 30%

Technology, Transportation Banking, Insurance,

Consumer Goods Manufacturing
Software, Telecoms & Logistics Financial Services
| 22 |
PwC Digital Procurement Survey - 4th edition
Sustainability focus: procurement departments play a key role
in integrating CSR practices for their companies at each stage
of the procurement process

Contract and
Strategic Supplier Supply Supplier
risk
sourcing selection management payment
management

Supplier panel evolution Supplier offer analysis (CSR/ Contract creation Compliance monitoring Payment digitisation
• Establish a sustainable sourcing
TCO) • Integrate CSR aspects in • Ensure the application of the CSR • Implement e-signature, e-invoicing,
strategy • Identify CSR risks and opportunities procurement contracts (e.g. CSR charter for the entire supply chain e-archiving to reduce paper waste
for international suppliers charter, specific clauses, etc.)
• Identify innovative suppliers,
sustainable sectors, circular • Integrate CSR specifications in
economy, local suppliers, etc. mission statements, ensure Supply chain traceability Payment delays optimisation
evaluation transparency Monitoring contract application
• Reduce the number of supplier • Optimise working capital
• Establish a clear CSR action plan for intermediaries requirements with respect to local
SRM management the supplier laws and regulations
Carbon footprint verification • Downsize the number of interactions
• Optimise CSR aspects with suppliers • Integrate CSR performance in between buyers and suppliers
• Measure environmental footprints for contract management thanks to automation
• Influence tier-N suppliers
the entire value chain Continuous improvement
• Evaluate suppliers with respect to • Secure supplies for tier-N suppliers
CSR engagements • Strengthen the CSR performance of
• Open alerts devices suppliers

| 23 |
PwC Digital Procurement Survey - 4th edition
 3 Geographical overview

Find out more

For more geographical insights, do not hesitate to reach out to your

local PwC contact!

| 24 |
PwC Digital Procurement Survey - 4th edition
Global view of procurement digital transformation:
All continents are already on board and will keep investing

Africa America Asia/Oceania Europe Middle East

Source-to-Pay solution
67% 72% 77% 79% 86%
equipment rate

Current process digitalisation

44% 36% 41% 41% 45%
rate

2025 target process

76% 73% 71% 72% 77%
digitalisation rate

Managing creating value from

61% 32% 46% 43% 70%
procurement data

SMEs’ yearly investments €780k €820k €530k €510k €850k

Large and very large

€1.790k €1.920k €1.400k €1.730k €1.720k
companies' yearly investments

Presence of CO2 emission

8% 13% 13% 15% 3%
tracker on roadmaps

1. Cost reduction (35%) 1. Cost reduction (33%) 1. Cost reduction (41%) 1. Cost reduction (36%) 1. Cost reduction (43%)
Strategic priorities 2. Supplier sourcing (32%) 2. Digital transformation (20%) 2. Supplier sourcing (18%) 2. Digital transformation (18%) 2. Digital transformation (25%)
3. Digital transformation (12%) 3. Supplier sourcing (14%) 3. Digital transformation (17%) 3. Supplier sourcing (15%) 3. Supplier sourcing (23%)
► Africa is strongly focused on supplier ► The continent seems to have the ► ESG/CSR is the fourth strategic ► Europe is concerned about risk ► Middle East is leading the
sourcing to support supplier portfolio lowest digitalisation rates, which priority of the continent’s CPOs, management and places it as its procurement transformation race,
diversification and foster innovation makes data management a which is the best ranking among fourth strategic priority with the highest equipment and
challenge continents. Seventy percent of digitalisation rate
► While being less equipped in S2P respondents see value potential in ► To address this stake, Europe is
solutions than other continents, ► However, America has planned to ESG digital use cases betting on innovative use cases, ► It will keep on this track by setting
Africa is creating value from its invest considerably to support digital such as risk management and supply digital transformation as the top
procurement data transformation ► Investments are about 15% lower chain traceability priority for 25% of procurement
than global average; however, the departments, and by strongly
► Digital transformation will be ► Risk management use cases are priority is set on S2C and P2P ► CO2 emission tracking is also on the investing in S2P digitalisation
supported by significant investments attracting investment interest on digitalisation, which gather important agenda for 15% of respondents,
about 30% of transformation shares of roadmaps while over 30% already track CO2 ► The innovative use case of smart
roadmaps emissions sourcing/relocation sourcing is also
emerging on roadmaps for 35% of
respondents (13% globally)

| 25 |
PwC Digital Procurement Survey - 4th edition
 4 Industrial
Industry benchmark

Services
Manufacturing

Banking, Insurance, Financial Services

Energy & Utilities

Technology, Software, Telecoms

Healthcare & Pharmaceuticals

Distribution & Retail

Consumer Goods

Transportation & Logistics

Building & Infrastructures

Professional Services
Find out more
Automotive
Purchasing issues and practices can vary widely from one industry to
another. That’s why we wanted to study the digital characteristics of Public Sector
procurement departments in the industries most represented in this
survey – to benchmark them within their sector and observe what is
| 26 |
specific about them.
PwC Digital Procurement Survey - 4th edition
 Main challenge is to rapidly and safely exchange data of post-
Manufacturing COVID demand with an even more heterogeneous and disrupted
Industry supplier base

Manufacturing companies favor investments related to P2P digitalisation and improved traceability (including CO2 trackers), but are
Current state of digital procurement still lagging behind in terms of S2C digitalisation and data analytics. Clients who face severe capacity constraints at their Tier 1 and
Tier 2 suppliers plan to set up platforms of collaborative demand versus capacity pooling. This supposes a higher level of mutual
Strategic priorities of procurement departments transparency than traditional supplier ‘mailbox’ portals. Co-financing on Capex and more flexibility on OEM specifications are
creative levers with trusted suppliers.
Manufacturing Industrial sector

#1 Cost reduction 31% Cost reduction 34% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Risk & crisis management 22% Supplier sourcing 17%
Manufacturing Industrial sector
#3 Supplier sourcing 21% Digital transformation 16% Small & medium companies €570k €600k
Large & very large companies €1.540k €1.720k
#4 Digital transformation 11% Risk & crisis management 15%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Manufact- Procure-to-Pay Supply chain Source-to-contract Data analysis and
56% 38% 37% 35%
Manufacturing Industrial sector uring digitalisation traceability digitalisation visualisation

Source-to-Pay equipment rate 79% 77%

Procure-to-Pay Data analysis and Source-to-contract Supply chain
Industrial sector 50% 41% 37% 32%
Average current digitalisation rate of digitalisation visualisation digitalisation traceability
38% 40%
procurement processes
2025 target digitalisation rate 69% 71%
Key success factors for digital transformation

Component manufacturers and assembly activities have resumed business after the COVID-19 downturn and need to Manufacturing Industrial sector
remobilise their globalised supply chain as they are strained by copper, aluminum inflation and shortages in plastic parts.
This implies higher attention towards capital expenditure and investments, which are lower by 10% versus previous years. #1 #1

#2 #2
Ever more challenged access to resources, such as supply and logistic threats, skills shortages and freedom of
movement force players to aggressively secure suppliers and develop new sources. Risk-management approaches #2
Adaptation of
influence criteria to select suppliers for a ‘stress test’ of resilience as economies reopen: sole-sourcing situations and #3 Adaptation of Involvement of #3
Involvement of existing
previous supply chain failures are closely considered in addition to the costs to serve. existing internal
#3 internal processes to the Review of best Review of best
processes to the stakeholders
stakeholders digital solution practices to practices to
Qualifying and developing capable suppliers at an early stage, defining commercial agreements and mutualising digital solution
modify existing modify existing
capabilities are key in situations of supply base attrition and strong industrial recovery: Up to 30% output increase in 2022
processes processes
versus 2021 is not uncommon for equipment manufacturers.
| 27 |
47% 60% 44% 52% 53% 41%
Base: 97 respondents PwC Digital Procurement Survey - 4th edition
 Energy & Utilities Energy transition is driving new challenges for procurement
Industry departments that aim at process efficiency through digitalisation

Small and medium-sized companies in Energy & Utilities (E&U) plan to invest more than the overall Industrial sector average, as the
Current state of digital procurement equipment rate in Source-to-Pay solutions is currently lower than the average. Like the Industrial sector, E&U identified Procure-to-
Pay digitalisation as the priority of its digital transformation roadmap.
Strategic priorities of procurement departments Process transformation through best practice identification E&U’s most important key success factor for digital implementations.
E&U companies could benefit from a wide benchmarking panel, due to the important number of actors in a geographically oriented
repartition of the global market.
Energy & Utilities Industrial sector

#1 Cost reduction 35% Cost reduction 34% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Digital transformation 22% Supplier sourcing 17%
Energy & Utilities Industrial sector
#3 Supplier sourcing 17% Digital transformation 16% Small & medium companies €970k €600k
Large & very large companies €1.650k €1.720k
#4 Risk & crisis management 8% Risk & crisis management 15%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Energy & Procure-to-Pay Data analysis and Source-to-contract Supply chain
53% 45% 37% 31%
Energy & Utilities Industrial sector Utilities digitalisation visualisation digitalisation traceability

Source-to-Pay equipment rate 75% 77%

Procure-to-Pay Data analysis and Source-to-contract Supply chain
Industrial sector 50% 41% 37% 32%
Average current digitalisation rate of digitalisation visualisation digitalisation traceability
41% 40%
procurement processes
2025 target digitalisation rate 76% 71%
Key success factors for digital transformation

The Energy industry is facing price increases in several – especially direct – categories. Increasing copper prices for Energy & Utilities Industrial sector
cables, for instance, increasing wages and workforce shortage in construction, as well as the societal and governmental
pressure of the energy transition heavily affects the procurement departments. Thus, cost reduction remains the top #1 #1
priority next to digital transformation.
#2 #2
Supplier sourcing is also a key priority of procurement departments, supply securisation being a prevalent topic in the #2
Review of best
industry. New suppliers and sources are required to secure the constant supply of material, especially in a shortage #3 Adaptation of Involvement of #3
Involvement of practices to
context where portfolios have been deeply challenged by COVID-19 crisis. The strong regulatory influence applied to this existing internal
#3 internal modify existing Review of best
industry makes risk and crisis management the fourth strategic priority of the procurement departments, 7 points less Change processes to the stakeholders
stakeholders processes practices to
than their Industrial peers. management digital solution modify existing
investment
processes
| 28 |
48% 52% 46% 52% 53% 41%
Base: 95 respondents PwC Digital Procurement Survey - 4th edition
 On the front line of the health crisis, procurement departments are
Healthcare & Pharmaceuticals now aiming at ensuring their digital transformation to gain supply
Industry resilience and reactivity

This industry has a lower degree of digitalisation than the average, but intends to catch up by 2025. Indeed, digitalisation has proven
Current state of digital procurement to be a major support in these crisis times, especially in a sector where capacity needs have not stopped increasing and where no
supply interruption is conceivable, especially for product categories such as drugs of major therapeutic interest (DMTIs).
Strategic priorities of procurement departments This desire to digitise the function is reflected in significant investments, especially among large companies, which intend to invest
30% more than their peers in the industry sector. As a result, professionals in the sector are fully aware that such large-scale
transformation projects will require investment in change management and commitment from all stakeholders.
Healthcare & Pharmaceuticals Industrial sector

#1 Cost reduction 36% Cost reduction 34% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Digital transformation 21% Supplier sourcing 17%
Healthcare & Pharmaceuticals Industrial sector
#3 Risk & crisis management 14% Digital transformation 16% Small & medium companies €550k €600k
Large & very large companies €2.230k €1.720k
#4 Supplier sourcing 13% Risk & crisis management 15%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Healthcare & Data analysis and Procure-to-Pay Automation of Source-to-contract
53% 47% 35% 33%
Healthcare & Pharma. Industrial sector Pharma. visualisation digitalisation admin. tasks digitalisation

Source-to-Pay equipment rate 70% 77%

Procure-to-Pay Data analysis and Source-to-contract Supply chain
Industrial sector 50% 41% 37% 32%
Average current digitalisation rate of digitalisation visualisation digitalisation traceability
36% 40%
procurement processes
2025 target digitalisation rate 74% 71%
Key success factors for digital transformation

The Healthcare & Pharmaceuticals sector, facing a multitude of challenges and pressure on innovation, is continuously Healthcare & Pharmaceuticals Industrial sector
forced to invest in research and development, resulting in the constant need to optimise costs. The COVID-19 pandemic
has simply accentuated this trend, which is actually inherent to the sector. Cost reduction is then the number one #1 #1
strategic priority for procurement departments (36%).
#2 #2 #2
Sourcing new suppliers remains a complex issue in the Healthcare & Pharmaceutical sector. The numerous specific #2
developments, complex technical standards and historical collaborations often imply strong dependencies on suppliers, Adaptation of Involvement of Adaptation of Involvement of #3
which makes it challenging to switch suppliers. internal Change internal
existing
#3 existing stakeholders management stakeholders Review of best
processes to the processes to the practices to
investment
digital solution digital solution modify existing
processes
| 29 |
47% 57% 47% 52% 53% 41%
Base: 56 respondents PwC Digital Procurement Survey - 4th edition
 The digitalisation of product-oriented use cases, such as data
Consumer Goods analysis or S2C, enables better monitoring of cost and margin
Industry control objectives

The sector's investment culture and the high investment capacity of large companies lead to investment forecasts that are much
Current state of digital procurement higher than the sector average (about +30%). These investment projects are primarily focused on product-oriented use cases,
specifically data analysis and the source-to-contract part of the purchasing process. In this way, these use cases will enable price
Strategic priorities of procurement departments breakdown and thus target product margins transparency, as well as supplier panel optimisation (rationalisation or diversification
involving strategic sourcing).
Consumer Goods Industrial sector

#1 Cost reduction 38% Cost reduction 34% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Supplier sourcing 16% Supplier sourcing 17%
Consumer Goods Industrial sector
#3 Risk & crisis management 15% Digital transformation 16% Small & medium companies €420k €600k
Large & very large companies €2.200k €1.720k
#3 Digital transformation 15% Risk & crisis management 15%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Consumer Data analysis and Source-to-contract Procure-to-Pay Automation of
51% 45% 35% 33%
Consumer Goods Industrial sector Goods visualisation digitalisation digitalisation admin. tasks

Source-to-Pay equipment rate 76% 77%

Procure-to-Pay Data analysis and Source-to-contract Supply chain
Industrial sector 50% 41% 37% 32%
Average current digitalisation rate of digitalisation visualisation digitalisation traceability
39% 40%
procurement processes
2025 target digitalisation rate 68% 71%
Key success factors for digital transformation

Procurement departments in the Consumer Goods sector naturally attach great importance to cost reduction and Consumer Goods Industrial sector
consider it their first strategic priority (38%), due to high sensitisation to margin optimisation and logistics efficiency.
#1 #1
Cost reduction can be supported by digitalisation of procurement process, for instance with the adoption of catalogues
#2 #2
and marketplaces, that could considerably optimise the product flow, speed up the processes, and help achieve a more
effective cost control. The increasing development of marketplaces is also a business driver that allows companies to find #2
both new suppliers and clients. 22% of Consumer Goods procurement departments are planning to invest in Adaptation of Involvement of #3 Adaptation of Involvement of #3
marketplaces by 2025, compared to an average of 16% for Industrial companies. internal existing internal
#3 existing stakeholders Change stakeholders Review of best
processes to the processes to the practices to
digital solution management digital solution modify existing
investment
processes
| 30 |
51% 53% 43% 52% 53% 41%
Base: 55 respondents PwC Digital Procurement Survey - 4th edition
 In mostly decentralised procurement departments, the challenge of
Building & Infrastructure digitalisation is to ensure user adoption by focusing on change
Industry management

Sustainability appears as an upcoming challenge that Building & Infrastructure companies are willing to address. About 25% of their
Current state of digital procurement procurement departments plan to invest in a CO2 emission tracker use case by 2025, compared to 14% in the Industrial sector. The
in-depth transformation to sustainable and eco-friendly activities will involve all the actors of the value chain, from raw materials
Strategic priorities of procurement departments extraction to waste management, passing by innovative materials and ways of building. Digitalisation may support this shift by
providing visibility on improvement fields and connecting the supply chains.
Building & Infrastructure Industrial sector

#1 Cost reduction 33% Cost reduction 34% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Risk & crisis management 20% Supplier sourcing 17%
Building & Infrastructure Industrial sector
#3 Supplier sourcing 16% Digital transformation 16% Small & medium companies €490k €600k
Large & very large companies €1.740k €1.720k
#4 Digital transformation 11% Risk & crisis management 15%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Building & Procure-to-Pay Source-to-contract Data analysis and Automation of
50% 44% 41% 41%
Building & Infrastructure Industrial sector Infrastructure digitalisation digitalisation visualisation admin. tasks

Source-to-Pay equipment rate 75% 77%

Procure-to-Pay Data analysis and Source-to-contract Supply chain
Industrial sector 50% 41% 37% 32%
Average current digitalisation rate of digitalisation visualisation digitalisation traceability
40% 40%
procurement processes
2025 target digitalisation rate 74% 71%
Key success factors for digital transformation

Building & Infrastructure procurement departments make risk and crisis management their second priority. Indeed, the Building & Infrastructure Industrial sector
operational approach into project mode often makes short-term contingency management a key driver of activities,
including for procurement departments that have to work with categories that are hard to plan and to centralise. In this #1 #1
context, digital transformation is not perceived as a top priority and is led by cost reduction objectives for 60% of
#2 #2
respondents, surpassing traditional drivers of process optimisation.
#2
Human considerations are strongly perceived as success factors of digital transformation, with change management Change #3 Adaptation of Involvement of #3
being the first reason for calling external support. To secure user adoption of new digital tools, acknowledging a wide Involvement of management internal
Adaptation of existing Review of best
variety of habits and processes, the challenges are to earn a strong sponsorship from the overall organisation, and to #3 internal investment stakeholders
existing processes to the practices to
make sure that adoption obstacles are limited by focusing on user experience capabilities. As an illustration, stakeholders
processes to the digital solution modify existing
marketplaces are gaining importance in digital procurement roadmaps, with 25% of companies willing to invest (versus
digital solution processes
16% in the Industrial sector), as this use case will allow them to reach both user satisfaction and procurement benefits.
| 31 |
58% 64% 56% 52% 53% 41%
Base: 45 respondents PwC Digital Procurement Survey - 4th edition
 Already strongly digitalised, companies in the Automotive sector are
Automotive willing to go further by increasing their investments to tackle new
Industry challenges of e-mobility

Investments by 2025 significantly outperform the Industrial sector average for both small and medium companies and large and very
Current state of digital procurement large companies, while this industry is already performing well regarding its procurement digital transformation. This reveals the
strategical importance of procurement departments within Automotive companies.
Strategic priorities of procurement departments The automation of administrative tasks is leading the race, followed by process digitalisation. Contrary to the 2020 results, the
involvement of internal stakeholders is seen as the key success factor for digital transformation. The adoption of existing processes
to the digital solution ranks second, followed by consideration of corporate culture.
Automotive industry Industrial sector

#1 Cost reduction 45% Cost reduction 34% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Supplier sourcing 16% Supplier sourcing 17%
Automotive industry Industrial sector
#3 Risk & crisis management 11% Digital transformation 16% Small & medium companies €1.230k €600k
Large & very large companies €2.240k €1.720k
#3 Digital transformation Risk & crisis management 15%
11%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Automotive Automation of Procure-to-Pay Source-to-contract Data analysis and
39% 35% 32% 29%
Automotive industry Industrial sector industry admin. tasks digitalisation digitalisation visualisation

Source-to-Pay equipment rate 85% 77%

Procure-to-Pay Data analysis and Source-to-contract Supply chain
Industrial sector 50% 41% 37% 32%
Average current digitalisation rate of digitalisation visualisation digitalisation traceability
43% 40%
procurement processes
2025 target digitalisation rate 72% 71%
Key success factors for digital transformation

E-mobility transition brings new challenges to Automotive manufacturers regarding sourcing, creating the need to secure Automotive industry Industrial sector
new supply sources in competitive categories across multiple markets, making sourcing the second priority of this
industry. This challenge may be illustrated by the recent global chip shortage, though it did not lead to a significant shift in #1 #1
strategic priorities for the Automotive industry compared with Digital Procurement Survey 2020 results.
#2 #2
#2
“Due to low capacity utilisation caused primarily by the global chip shortage, cost reduction remains one of the top Adoptation of Involvement of #3 Adaptation of Involvement of #3
priorities in the Automotive industry. Especially Tier 1 to n suppliers are under pressure to fight for keeping their margins internal existing internal
in order.” #3 existing stakeholders stakeholders Review of best
processes to the Consideration of processes to the practices to
Michael Thon, Partner, PwC Procurement Germany digital solution digital solution
corporate culture modify existing
processes
| 32 |
58% 61% 36% 52% 53% 41%
Base: 38 respondents PwC Digital Procurement Survey - 4th edition
 The Banking, Insurance, Financial Services (FS) industry makes
Banking, Insurance, Financial Services digital transformation a key priority and will highly invest in Source-
Services to-Pay digitalisation by 2025

Despite efforts to make processes smoother internally and for the suppliers, the average digitalisation rate for Source-to-Pay
Current state of digital procurement remains below the Sector of Services average by 5 points. This gap could be moderated with expected improvements of financial
results in 2021 among this industry as investments in procurement digital transformation are expected to return to the agenda.
Strategic priorities of procurement departments

Banking, Insurance, FS Sector of Services

#1 Cost reduction 35% Cost reduction 39% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Digital transformation 26% Digital transformation 21%
Banking, Insurance, FS Sector of Services
#3 Supplier sourcing 17% Supplier sourcing 16% Small & medium companies €560k €530k
Large & very large companies €1.790k €1.780k
#4 Risk & crisis management 7% Risk & crisis management 7%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Banking, Procure-to-Pay Automation of Source-to-contract Data analysis and
48% 48% 38% 35%
Banking, Insurance, FS Sector of Services Insurance, FS digitalisation admin. tasks digitalisation visualisation

Source-to-Pay equipment rate 71% 76%

Sector of Procure-to-Pay Source-to-contract Automation of Data analysis and
44% 41% 38% 37%
Average current digitalisation rate of Services digitalisation digitalisation admin. tasks visualisation
40% 42%
procurement processes
2025 target digitalisation rate 76% 75%
Key success factors for digital transformation

With increasing pressure on costs in the Financial Services, procurement departments are not spared, as cost reduction Banking, Insurance, FS Sector of Services
appears as their most strategic priority. Reducing costs will require digital transformation investments, they will primarily
target Source-to-Pay digitalisation because the equipment rate is lower compared to other services. #1 #1

#2 #2
“A key challenge to transform procurement in the Financial Services sits in the capacity of #2
organisation to mobilise and enhance collaboration between internal stakeholders, most Adaptation of Involvement of #3 Adaptation of Involvement of #3
often shared between procurement and finance functions.” internal existing internal
Timothée Huignard, Director, PwC Financial Services France #3 existing stakeholders Review of best stakeholders Change
processes to the practices to processes to the
digital solution digital solution management
modify existing
investment
processes
| 33 |
52% 70% 48% 50% 64% 43%
Base: 88 respondents PwC Digital Procurement Survey - 4th edition
 Technology companies will further extend their leading position in
Technology, Software, Telecoms procurement digitalisation and increase investments in innovative
Services use cases

Besause the large Technology companies have the ambition to keep their leading position in digitalisation, their investments in
Current state of digital procurement transformation are higher than the average. Due to the already high degree of equipment rate, supply chain traceability, data
analysis and visualisation, and smart/relocation sourcing (25% of roadmaps versus 16% for Services average) are the logical next
Strategic priorities of procurement departments use cases building up on successful digitalisation efforts.

Technology, Software, Telecoms Sector of Services

#1 Cost reduction 42% Cost reduction 39% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Supplier sourcing 15% Digital transformation 21%
Technology, Software, Telecoms Sector of Services
#3 Digital transformation 12% Supplier sourcing 16% Small & medium companies €320k €530k
Large & very large companies €2.095k €1.780k
#3 Risk & crisis management 12% Risk & crisis management 7%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Technology,
Supply chain Source-to-contract Data analysis and Procure-to-Pay
Software, 43% 39% 36% 32%
Technology, Software, Telecoms Sector of Services traceability digitalisation visualisation digitalisation
Telecoms
Source-to-Pay equipment rate 92% 76%
Sector of Procure-to-Pay Source-to-contract Automation of Data analysis and
44% 41% 38% 37%
Average current digitalisation rate of Services digitalisation digitalisation admin. tasks visualisation
53% 42%
procurement processes
2025 target digitalisation rate 79% 75%
Key success factors for digital transformation

For the Technology, Software, Telecoms industry, cost reduction and supplier sourcing appear as the top priorities. Technology, Software, Telecoms Sector of Services
Indeed, the sector has been affected by the chip shortage and the raw material crisis, which led to an important pressure
on cost to preserve margins and to a re-evaluation of the supplier portfolios. #1 #1

#2 #2
The industry ranks at the top of the procurement digital transformation race, with higher solution equipment rate (92%,
+16 points versus Service average) and digitalisation rates of processes, inherited capability from their technology-native #2
mindset. As transformation is already deeply engaged, digital transformation only comes third on the list of procurement Adaptation of Involvement of #3 Adaptation of Involvement of #3
strategic priorities. internal existing internal
#3 existing stakeholders Change stakeholders Change
processes to the processes to the
digital solution management digital solution management
investment investment

| 34 |
54% 66% 47% 50% 64% 43%
Base: 65 respondents PwC Digital Procurement Survey - 4th edition
 Distribution & Retail Digitalisation is imperative to protect margins and gain clients in a
Services challenging and competitive market

Small and medium companies in Distribution & Retail plan to invest more in procurement digital transformation by 2025 than the
Current state of digital procurement average service sector. The smaller retailers invest in digitalisation as they are trying to catch up with the larger retailers and
increase their margins, by achieving cost reduction through process optimisation.
Strategic priorities of procurement departments

Distribution & Retail Sector of Services

#1 Cost reduction 47% Cost reduction 39% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Supplier sourcing 20% Digital transformation 21%
Distribution & Retail Sector of Services
#3 Digital transformation 15% Supplier sourcing 16% Small & medium companies €740k €530k

Supplier relationship Large & very large companies €1.495k €1.780k

#4 9% Risk & crisis management 7%
management
Use case digital roadmap by 2025
#1 #2 #3 #4
Digitalisation status
Distribution & Procure-to-Pay Source-to-contract Data analysis and Automation of
48% 48% 35% 35%
Distribution & Retail Sector of Services Retail digitalisation digitalisation visualisation admin. tasks

Source-to-Pay equipment rate 71% 76%

Sector of Procure-to-Pay Source-to-contract Automation of Data analysis and
44% 41% 38% 37%
Average current digitalisation rate of Services digitalisation digitalisation admin. tasks visualisation
36% 42%
procurement processes
2025 target digitalisation rate 71% 75%
Key success factors for digital transformation

Cost reduction is the most important strategic priority for half the procurement departments in the Distribution & Retail Distribution & Retail Sector of Services
industry. It is explained by the rising transportation and raw material costs and excess inventory, combined with narrow
margins in this very competitive market. #1 #1

#2 #2
Surprisingly, survey respondents ranked supplier sourcing second due to increasing customer demands regarding
sustainability. Sustainability is becoming a key market differentiator in this industry, that can strongly be supported by #2
procurement departments. Adaptation of Involvement of #3 Adaptation of Involvement of #3
internal existing internal
Digital transformation is only placed third even though clients, particularly in the discount retail area, demand it. #3 existing stakeholders Change stakeholders Change
processes to the processes to the
procurement departments need to adapt to disruptive changes within the Distribution & Retail sector as new entrants with digital solution management digital solution management
new concepts challenge the market and supply dynamics. investment investment

| 35 |
56% 66% 44% 50% 64% 43%
Base: 55 respondents PwC Digital Procurement Survey - 4th edition
 Public sector Procurement departments
Key message xxxxx xxxas part xxx
xxxxx of core
xxx business
x x xxxxxxactivities are
Transportation & Logistics seeking cost optimisation, while digitalisation aims at serving overall
Services
Services operational performance

Cost reduction appears to be a strong preoccupation of CPOs in the Transportation & Logistics industry. It is the first piority for about
Current state of digital procurement 50% of them. Indeed, the recent market context showed an exacerbated volatility, especially on fuel and transportation prices. In
addition, this industry is also subject to a very competitive environment, which tends to lower the margin of sales and to make cost
Strategic priorities of procurement departments control a necessity.

Transportation & Logistics Sector of Services

#1 Cost reduction 47% Cost reduction 39% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Digital transformation 21% Digital transformation 21%
Transportation & Logistics Sector of Services
#3 Supplier sourcing 16% Supplier sourcing 16% Small & medium companies €320k €530k
Large & very large companies €1.410k €1.780k
#4 Risk & crisis management 5% Risk & crisis management 7%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Transport. & Source-to-contract Procure-to-Pay Supply chain Data analysis and
55% 48% 42% 39%
Transportation & Logistics Sector of Services Logistics digitalisation digitalisation traceability visualisation

Source-to-Pay equipment rate 83% 76%

Sector of Procure-to-Pay Source-to-contract Automation of Data analysis and
44% 41% 38% 37%
Average current digitalisation rate of Services digitalisation digitalisation admin. tasks visualisation
41% 42%
procurement processes
2025 target digitalisation rate 73% 75%
Key success factors for digital transformation

The Transportation & Logistics industry’s procurement departments are integrated in the core business of their Transportation & Logistics Sector of Services
companies, which aim to serve supply chain efficiency. This orientation is also expressed in their approach of
procurement digitalisation, with a process and operational performance-driven transformation. #1 #1

Indeed, this industry is better equipped with digital solutions covering the S2P processes (>80%), and set sourcing as the #2 #2
first target of its transformation roadmap. Supply chain traceability is also on the agenda to address a need for developing #2 Adaptation of
a 360-degree vision of their supply activities. Processes and technical capabilities of solutions are named as the existing Involvement of
#3 Adaptation of #3
requirements for a successful digitalisation project, while other companies int the Service sector are betting on human processes to the internal
existing
transformation. #3 Vendor digital solution Review of best stakeholders Change
selection practices to processes to the
The panorama of digital solutions in the Transport & Logistics industry differs from the traditional ProcureTech actors. It is digital solution management
modify existing
also composed by specialised ‘all-in-one’ solutions that allow a complete management of transportation operations, investment
processes
including procurement activities, that may better suit the specific needs of the industry.
| 36 |
46% 60% 43% 50% 64% 43%
Base: 43 respondents PwC Digital Procurement Survey - 4th edition
 Public sector Keycost
message xxxxx
Professional Services While reduction is axxx xxxxxpriority
cultural xxx xxxfor
x xprocurement
xxxxxx
Services
Services departments, ESG appears as the upcoming issue to tackle

Professional Services companies have a balanced digital roadmap, focusing on fundamental procurement use cases, as well as on
Current state of digital procurement innovative ones. For instance, 21% of respondents are willing to invest in ESG use case like the CO2 tracker, compared to 12% for
the overall Service sector, while it is currently used by 15% of Professional services companies and 27% in the Service sector. ESG
Strategic priorities of procurement departments appears as an upcoming issue for this industry, through monitoring internal and supplier CO2 emissions, and achieving more
socially inclusive procurement. The challenges will be to step into this transformation and to materialise ESG initiatives within
procurement.
Professional Services Sector of Services

#1 Cost reduction 47% Cost reduction 39% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Risk & crisis management 13% Digital transformation 21%
Professional Services Sector of Services
#3 Digital transformation 11% Supplier sourcing 16% Small & medium companies €370k €530k
Large & very large companies €1.490k €1.780k
#4 Supplier sourcing 10% Risk & crisis management 7%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Professional Procure-to-Pay Data analysis and Automation of Source-to-contract
36% 36% 36% 33%
Professional Services Sector of Services Services digitalisation visualisation administrative tasks digitalisation

Source-to-Pay equipment rate 68% 76%

Sector of Procure-to-Pay Source-to-contract Automation of Data analysis and
44% 41% 38% 37%
Average current digitalisation rate of Services digitalisation digitalisation admin. tasks visualisation
40% 42%
procurement processes
2025 target digitalisation rate 71% 75%
Key success factors for digital transformation

Professional Sevices companies are mainly focused on indirect procurement such as intellectual expertise, often Professional Services Sector of Services
managed by operational teams, and on classical indirect categories (IT, T&E, utility, marketing, etc.). Historically attached
to finance departments, the performance of Professional Services procurement departments inherited of a financial #1 #1
culture of measurement, which leads to set cost reduction as the first priority for about 50% of respondents.
#2 #2
Some items then become secondary priorities, such as digital transformation. Professional Services companies are #2
currently 12% less equipped with Source-to-Pay solutions than the Service sector average and are willing to invest about Involvement of Involvement of
Adaptation of #3 Adaptation of #3
25% less in digital roadmap. However, digital transformation is a strong vector of cost reduction with proven ROI through internal internal
existing
process optimisation and reduction of administrative tasks for both procurement and operational teams. #3 existing stakeholders Review of best stakeholders Change
processes to the practices to processes to the
digital solution digital solution management
modify existing
investment
processes
| 37 |
50% 62% 44% 50% 64% 43%
Base: 38 respondents PwC Digital Procurement Survey - 4th edition
 Public sector services consider the digital transformation of their
Public Sector procurement department as a major priority and will massively
Services invest by 2025 to succeed in their digital transformation journey

The global momentum for ESG, supported by most governments, can be identified through the importance of ESG as a strategic
Current state of digital procurement priority for procurement departments in Public sector services.

Strategic priorities of procurement departments The priority given to cost reduction is not as high in the Public sector services as in the whole Sector of Services despite a high level
of debts for most governments, due to the COVID-19 pandemic. The priority most public services institutions give to local and
national suppliers may justify the secondary consideration for cost reduction.
Public Sector Sector of Services

#1 Digital transformation 38% Cost reduction 39% Future state of digital procurement
Investments in procurement digital transformation by 2025 (yearly)
#2 Cost reduction 16% Digital transformation 21%
Public Sector Sector of Services
#2 Supplier sourcing 16% Supplier sourcing 16% Small & medium companies €790k €530k
Large & very large companies €2.150k €1.780k
#4 ESG/CSR 14% Risk & crisis management 7%

Use case digital roadmap by 2025

#1 #2 #3 #4
Digitalisation status
Procure-to-Pay Data analysis and Source-to-contract Automation of
Public Sector 52% 52% 48% 48%
Public Sector Sector of Services digitalisation visualisation digitalisation admin. tasks

Source-to-Pay equipment rate 82% 76%

Sector of Procure-to-Pay Source-to-contract Automation of Data analysis and
44% 41% 38% 37%
Average current digitalisation rate of Services digitalisation digitalisation admin. tasks visualisation
40% 42%
procurement processes
2025 target digitalisation rate 73% 75%
Key success factors for digital transformation

Digital transformation is at the top of the agenda for 38% of Public Sector institutions versus 21% for companies in the Public Sector Sector of Services
Sector of Services. Moreover, the Public Sector has a clear vision on the different use cases to implement within its
roadmap by 2025. As a clear strategic priority, Digital transformation is supported by a high level of investments with #1 #1
€2.220k per year by 2025 for large institutions versus €1.780k for large services companies.
#2 #2
#2
“If change management and involvement of internal stakeholders are clearly identified as key success factors, we can Involvement of #3 Adaptation of Involvement of #3
wonder if the importance of adapting existing processes to the digital solution is not underestimated regarding the Change internal internal
Review of best existing
constraints linked to purchasing processes in the Public Sector.” #3management stakeholders stakeholders Change
practices to processes to the
David Martin, Director, PwC Public Services France investment management
modify existing digital solution
investment
processes
| 38 |
47% 76% 41% 50% 64% 43%
Base: 37 respondents PwC Digital Procurement Survey - 4th edition
 Glossary: acronyms & technical terms

This survey contains numerous acronyms and technical terms. Please refer to this Glossary for clarification.

AI Artificial Intelligence Digitalisation To convert business processes over to use digital technologies, instead of analogue
or offline systems such as paper or whiteboards
Automation To implement a technology, software or programme to accomplish a procedural
outcome with little or no human interference Digitisation To convert something into a digital format; usually refers to encoding of data and
documents
Blockchain A system in which a record of transactions made across several computers that are
linked in a peer-to-peer network ESG Environmental, Social, and Governance is an evaluation of a firm’s collective
conscientiousness for social and environmental factors
CEO Chief Executive Officer

CSR Corporate Social Responsibility P2P Procure to Pay. Also called ‘transactionnal processes’ as part of the survey.

CO2 Carbon dioxide, a gas with a molecular structure composed of two oxygen atoms POC Proof of concept, a demonstration to verify that certain concepts or theories have the
and one carbon atom. potential for real-world application. In a nutshell, a POC represents the evidence
demonstrating that a project or product is feasible and worthy enough to justify the
expense required to support and develop it.
COVID-19 Coronavirus disease, an infectious disease caused by the SARS-CoV-2 virus

CPO Chief Procurement Officer

Process intelligence Data that has been systematically collected to analyse the individual steps within a
Cybersecurity Computer security, cybersecurity, or information technology security is the business process or operational workflow
protection of computer systems and networks from information disclosure; theft of or
damage to their hardware, software, or electronic data; as well as from the ProcureTech Ecosystem of digital solutions and technologies addressing the procurement process
disruption or misdirection of the services they provide.
ROI Return on Investment
Data analytics The science of analysing raw data to make conclusions about that information.
S2C Source to Contract. Also called ‘strategic processes’ as part of the survey.
Digital procurement A full-suite or half-suite procurement tool covering the entire purchasing processes
(e.g. Coupa, Ivalua, Jaggaer, SAP Ariba, etc.) S2P Source to Pay
tools/solutions
SMEs Small and Medium-sized Enterprises
Digital Leveraging emerging technologies to build new business systems by integrating
transformation several workflows for a singular objective SRM Supplier relationship management

| 39 |
PwC Digital Procurement Survey - 4th edition
Contact us!
Global PwC Strategic Supply Management network

Europe Asia/Oceania America

Dr Norbert F. Fischer Isabelle Carradine Pinto Mikko Kultanen Ho-Seung Shin Pirata Phakdeesattayaphong Meghan Murray
Global Lead of the PwC Procurement Partner Director Partner Partner Partner
Consulting Practice, Partner isabelle.carradine@pwc.com mikko.kultanen@pwc.com ho-seung.shin@pwc.com pirata.phakdeesattayaphong@pwc.com meghan.l.murray@pwc.com
norbert-f.fischer@de.pwc.com PwC France & Maghreb PwC Finland PwC Korea PwC Thailand PwC United States
PwC Germany

Jan Herrmann Hubert Verweij Selim Sumer Marc Philipp Takeshi Noda Jose Luis de los Santos
Partner Director Director Partner Partner Partner, Strategy&
jan.hermann@pwc.com hubert.verweij@pwc.com selim.sumer@pwc.com marc.philipp@pwc.com takeshi.noda@pwc.com joseluis.delossantos@pwc.com
PwC Germany PwC Sweden PwC Norway PwC Singapore PwC Japan PwC Mexico

Robert Weissbarth Patrick Marter Lorenzo Paolo Brunello Avinash Agarwal Edmund Lee Jamie Siu
Director, Strategy& Partner Director Associate Director Partner Partner
robert.weissbarth@pwc.com patrick.marter@pwc.com lorenzo.paolo.brunello@pwc.com avinash.a@pwc.com edmund.ym.lee@hk.pwc.com jamie.y.siu@pwc.com
PwC Germany PwC United Kingdom PwC Italy PwC India PwC China PwC Canada

Harald Dutzler Frederic Chapelle Mark McKeever Justin Meade Rodrigo Damiano
Partner Partner Director Director Partner
harald.dutzler@pwc.com frederic.chapelle@pwc.com mark.mckeever@pwc.com justin.meade@pwc.com rodrigo.damiano@pwc.com
PwC Austria PwC Luxembourg PwC Ireland PwC Australia PwC Brazil

Mark Rajal Thomas Siersbæk Heller-Njor Peter Feyen Boris Miranda

Director Partner Senior Manager Partner
marc.rajal@pwc.ch
PwC Switzerland
thomas.siersbaek.heller- njor@pwc.com
PwC Denmark
peter.feyen@pwc.com Africa & Middle East Boris.miranda@pwc.com
PwC Chile
PwC Belgium

Ismail Karakis Athanasios S. Spanos Jiří Jakoubek Alex Murage Assia Benhida Oscar Prada
Partner Director Senior Manager Associate Director Partner Partner
ismail.karakis@pwc.com athanasios.s.spanos@pwc.com jiri.jakoubek@pwc.com alex.murage@pwc.com assia.benhida@pwc.com oscar.prada@pwc.com
PwC Turkey PwC Greece PwC Czech Republic PwC Kenya PwC France & Maghreb PwC Colombia

Slaven Curic Manuel Diaz Delgado Xander De Jong Retief Ferreira Dr Bashar El-Jawhari Damian Vazquez
Director Partner Senior Manager Associate Director Partner Partner
slaven.curic@pwc.com manuel.diaz.delgado@es.pwc.com xander.de.jong@pwc.com ferreira.retief@pwc.com bashar.el-jawhari@pwc.com damian.vazquez@pwc.com
PwC Croatia PwC Spain PwC Netherlands PwC South Africa PwC Middle East PwC Argentina

Emovwerha Nwaefuna
Senior Manager
emovwerha.nwaefuna@pwc.com
PwC Nigeria
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PwC Digital Procurement Survey - 4th edition
Thank you
Authors
Dr Norbert F. Alexandre François Alexander
Fischer Roux Haas Platsch

Isabelle Florian Laura Janis

Carradine Tué Schäfer Meintrup

Graphism Special thanks for contributing

Alex Kennewell Faïda Assoumani Luca Grieco Nicolas Staquet
Augustin Ausseur Felix Kesselberg Mansour Shouman Olivier Tcheng
Creative Lab - PwC France Constanze Häbel Frédéric Malagoli Marc Damez-Fontaine Philippe Gaurois
Dan Michaux Hendrik Spoering Marine Boisgontier Timothée Huignard
David Martin Jean-Paul Bouteloup Matthieu Costa Tyler Shackman
Gavin Morton Kai Dresch Maxence Jouvenot
Elodie Vial Lu Yu Michael Thon

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