In the second installment of this series which we have based on the 2024 PwC Digital Procurement Survey, the focus shifts to cost control\u2014deemed the most critical priority by 65% of procurement executives. With procurement departments being pivotal in managing external expenses and suppliers, cost management remains top of the agenda. Traditionally, procurement teams are tasked with meeting annual cost savings targets, cascading these objectives down to category teams. However, recent economic landscapes, marked by inflation, rising interest rates, and supply base instability, have complicated cost reduction efforts. Emerging challenges like the new U.S. trade tariffs across the globe exacerbate these pressures.<\/p>\n
In this volatile environment, the emphasis is shifting from mere cost reduction to maintaining and optimising current cost structures. This approach necessitates a profound understanding of procurement blind spots and areas ripe for optimisation. The PwC Survey highlights data analytics as a significant investment priority (33% cited it as a top priority)<\/em>, yet many organisations struggle to fully exploit their data, affecting spend visibility, savings reporting, risk and opportunity management as well as KPI oversight.<\/p>\n This is where methodologies such as SAP\u2019s \u201cTriple Crown\u201d of Strategic Procurement approach<\/strong>\u2014encompassing insights, planning, and execution\u2014proposes a framework for managers focused on cost control:<\/p>\n In summary, today’s economic challenges necessitate a nuanced approach to cost control, emphasising a desperate need for data-driven insights and strategic execution through greater automation. A focus on maintaining cost levels and optimising existing structures provides a resilient path forward, with new approaches such as SAP\u2019s Triple Crown methodology offering a closed loop to achieve these objectives across all spend.<\/p>\n","protected":false},"excerpt":{"rendered":" In the second installment of this series which we have based on the 2024 PwC Digital Procurement Survey, the focus shifts to cost control\u2014deemed the…<\/p>\n","protected":false},"author":5044,"featured_media":135487,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"related_posts":[],"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2607111],"tags":[],"sapn-display":[5593034,5593032],"sapn-type":[2607062],"class_list":["post-135485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","sapn-display-feature-hero","sapn-display-feature-spotlight","sapn-type-feature"],"yoast_head":"\n\n