The automation of B2B operations It is necessary, but it has only been implemented by the 9% of suppliers worldwide. This is the main conclusion of the 2022 State of the Supply Side Report, prepared by Jaggaer, a company specializing in autonomous trade.
The study reveals that while vendors recognize the value of automation, most have not taken steps to optimize high friction or contact processeswhich is slowing down the global supply chain.
The providers refer to “respond to requests for proposals or RFPs” (43%) and “management and collection of invoices” (43%) as priority tasks to automate. Progress seems slow, with 89% saying they have not or only partially automated responses to RFPs. The same happens with the management and collection of invoices.
“Organizations around the world are revamping their supply chains to mitigate risk and improve resilience. Our survey indicates that poor supply automation drives inefficiencies that could stall broader progress and inhibit supplier growth and performance.”said Georg Roesch, Jaggaer’s Vice President of Direct Purchasing Strategy.
For Rosch, “True transformation requires a frictionless, fully digitized experience for both buyers and suppliers. Closing the gap on the provider side will be essential to build resiliency, increase speed and reduce costs for both parties.”.
Survey Findings
- The supply chain disruptions They are seriously affecting the providers. Seven out of 10 say that the shortage is having a major impact on your business. Other threats include inflation (69%), labor shortages (62%), limited production capacity (53%), and geopolitical risks (50%).
- The processes are still mostly manual. Among the main obstacles cited are managing several platforms at the same time (65%), as well as processes and communication with buyers (39%).
- The operational challenges back-end vendors are largely held back. They admit that they could advance their strategic objectives: grow their business (74%), strengthen customer relationships (72%), and increase profitability and reduce costs (59%) with the right technology and more time.
- Vendors recognize the value of automation and Artificial Intelligence (AI). Having a centralized center with access to a large universe of buyers (59%), having comparative data with respect to its competitors (57%) and automated workflows (48%) are mentioned as the three factors that would most contribute to improving its deal.
“This is the time for providers to embrace automation. Inflation, talent shortages and disruptions will continue to affect global supply chains. At the same time, expectations will rise for suppliers to foster environmental, social and governance (ESG) actions and other strategic initiatives. Streamlining core processes will increase the ability to address these emerging issues and other business priorities.” Rosch added.
