How can or­ga­niza­tions tell whet­her di­gi­tal pro­cu­re­ment is cre­at­ing va­lue?

A procurement team can run more tenders online, register more suppliers, and process more invoices through a digital platform. These figures show that the system is being used. Whether it is helping the organization make better purchasing decisions takes a closer look. That was the focus of an event at Copenhagen Business School, organized by CIPS Denmark and the Strategic Procurement Initiative at CBS. Procurement professionals, technology experts and researchers from the SPI discussed what organizations should expect from e-procurement and how to judge whether those expectations are being met.

Jacob Gorm Larsen from Moneyball CPH discussed the value of data and insights in sourcing decisions, including how buyers compare offers and challenge their assumptions. Mille Albæk Høst from Scanmarket by Unit4 presented statistics on electronic auctions, covering auction formats, purchasing categories, geographical patterns and the data needed to prepare them. Andrea Patrucco from CBS addressed how organizations can assess the benefits of these applications and shared an Excel tool that participants could use for their own assessment.

One discussion centered on a question that is easy to overlook: When something improves for the procurement department, what improves for the rest of the organization?

A shorter tender process might help an operational team receive an essential service sooner. It might also free procurement staff to work on supplier relationships or more complex contracts. But it could shift administrative work to suppliers or other employees. Understanding the benefit means following the change beyond the procurement department. The same applies to savings. Staff time released for other work has value, although it does not automatically reduce expenditure. A lower bid price also needs to be considered alongside delivery costs, quality and supplier performance.

Cost and commercial benefits were amongst the most mentioned and discussed in the audience poll, but emphasis was also put on user readiness. Participants raised the familiar situation of employees continuing to work in separate spreadsheets despite having access to a procurement system.

That matters when assessing value: the expected benefit depends on whether people can and will use the new process. The discussion of AI raised related concerns about reliable data, leadership and human judgment.