PwC Digital Procurement Survey 2024

PwC Study 2024: Cost control, sustainability, and digital transformation as key priorities in procurement

Your expert for questions

Dr. Jan Joachim Herrmann
Partner at PwC Germany
Email

The evolution of procurement: Strategic resilience, sustainability, and digital transformation currently in focus

In a time when economic, geopolitical, and ecological crises are successive, the strategic role of procurement gains significance for maintaining supply chain resilience and the capacity for innovation.

Nowadays, Corporate Social Responsibility (CSR) use cases such as CO₂ emission monitoring, supply chain traceability, and data transparency have become essential components of the roadmaps of procurement departments. This highlights their commitment to more sustainable performance in procurement.

The digital transformation in procurement is significantly shaped by the pursuit of performance improvement, both internally and externally. To support this transformation, procurement departments must ensure that users are on board and develop new features in areas such as CSR, contract management, and supplier management.

“In the aftermath of the pandemic, the strategic priorities in procurement—cost, resilience, and sustainability—are clearly emerging and serve as clear signposts in an increasingly complex world that demands efficiency, innovation, and social responsibility.”

Dr Jan Joachim Herrmann,Partner at PwC Germany

The study at a glance

A global view of current drivers in procurement

With over 1,000 participating companies from 58 countries, the fifth edition of the Digital Procurement Survey reveals exciting insights—not only for the digital transformation in procurement.

Survey sample - a global insight into the world of procurement

The strategic priorities of procurement executives in Germany

German procurement departments rate performance management as their top strategic priority (50 percent). This includes cost control in procurement to ensure financial stability and competitiveness. The more effective the cost control, the more sustainable, flexible, and resilient supply chains are built. This is especially crucial in times when economic, geopolitical, and ecological crises are successive.

Sourcing and digital transformation both follow at a considerable distance (14 percent each) as the second most important strategic priority for the participating companies. Thus, the top three strategic priorities in Germany align with the global trend.

Top strategic priorities for procurement departments

Change management: The leading success factor for German companies in digital transformation

For German companies, change management is the top success factor for digital transformation, with 75 percent of mentions. This is significantly higher than the clear definition of requirements and functional processes, which is considered the most important worldwide at 70 percent.

In selecting providers and involving sponsors and management in projects, Germany aligns with the global average at 57 percent and 54 percent respectively. The integration of internal and external project management support is rated slightly lower in Germany than worldwide.

Key success factors for digital transformation

Download the study and detailed results

PwC Digital Procurement Survey 2024

The results at a glance

Digitalisation

The degree of digitalisation in procurement has changed only marginally since the pandemic, but the ambitions for the coming years remain high.

By 2027, procurement departments are planning a digitalisation rate of around 70 percent, which is an ambitious but slightly reduced three-year target compared to the last survey.

From 2022 to 2024, the digitalisation rate remained unchanged, influenced by ongoing crises. While rapidly changing needs increase the demand for digitalisation, there have been delays between investment decisions in the past, leading to a backlog of digitalisation projects.

Currently, we anticipate a continually accelerating market for digitalisation projects up to 2027. Investments are increasing again, driven in part by changes to ERP systems and regulatory developments along the supply chain.

Procurement process digitalisation rate for the next three years (2024-2027)

Technologies

Trends in procurement: Data analysis and risk management on the rise, P2P and traceability in decline

Data analytics and Source-to-Contract (S2C) are the key use cases and the backbone for ensuring the performance of procurement.

Several use cases are showing a significant decline, particularly P2P and traceability in the supply chain. The majority of companies already have P2P tools, resulting in less catch-up needed in this area than before. Surprisingly, a decreasing priority is currently given to use cases that are predominantly indirectly related to performance and regulatory compliance (traceability, ecosystems, marketplaces, etc.).

Risk management and CO₂ emissions monitoring are rising in priority. Companies are aiming to strengthen their capabilities in managing and preventing procurement risks.

Use cases related to the creation and management of contracts are becoming a priority, with the goal of improving both maturity and performance. Additionally, interest in the use of artificial intelligence is increasing, as companies continue to evaluate which use cases provide real added value.

Procurement roadmap use cases: target investment areas for 2027

Digitalisation investments

Investment trends in digitalisation: Continuity among large enterprises and growth among SMEs

Since the Digital Procurement Survey in 2020, the average level of investment relative to company size has not changed significantly; companies are consistently investing to introduce new tools and enhance existing solutions. Small and medium-sized enterprises are driving growth through sustained high investments, while very large companies are slightly reducing their investments but still planning significant budgets for the digital transformation of procurement.

Projected investment amounts by company size and year

Download the full study

PwC Digital Procurement Survey 2024

Any questions?

Contact our experts.

The methodology

These findings are from the PwC Digital Procurement Survey 2024. For the study, PwC surveyed more than 1,000 companies from 58 countries.

Follow us

Contact us

Dr. Jan Joachim Herrmann

Dr. Jan Joachim Herrmann

Partner, PwC Germany

Tel: +49 1516 5262365

Wolf Göhler

Wolf Göhler

Director, PwC Germany

Tel: +49 151 72833267

Hide