- Artificial Intelligence and ESG highlighted as the most important considerations for Chief Procurement Officers
- Gartner survey revealed that strategic sourcing and leveraging spend are the most significant challenges for CPOs in 2024
Riyadh, Saudi Arabia, 11 June, 2024: JAGGAER, the global leader in strategic sourcing and procurement, has held a series of roundtables in Saudi Arabia and the UAE to address the top priorities for Chief Procurement Officers (CPOs). The events brought together key industry leaders to discuss the strategies for navigating the evolving landscape of procurement and supply chain management.
During the roundtables, which took place in Riyadh and Abu Dhabi, several focus areas were discussed including artificial intelligence (AI), cost optimisation, supplier risk mitigation, procurement talent and environmental, social and governance (ESG) considerations, with AI and ESG emerging as the most important considerations for the industry at present.
Hany Mosbeh, Senior Vice President – Middle East and Africa, JAGGAER said: “At JAGGAER we remain committed to empowering CPOs with innovative source-to-pay technology, enabling them to navigate complexities, unlock efficiencies and achieve sustainable growth. Our roundtables have underscored the top priorities for CPOs with ESG emerging as a particularly significant trend.”
JAGGAER software plays a pivotal role in integrating environmental, social and governance considerations into procurement strategies, aligning with global efforts to reduce carbon footprints, conserve resources, promote sustainable practices, eliminate forced or child labour from supply chains, and prevent fraud.
This integration underscores the critical role of ESG factors in assessing and mitigating risks across the supply chain. It also highlights how ESG strategies can help organisations achieve long-term business benefits by effectively engaging with all stakeholders, including not only suppliers but, increasingly, consumers who expect companies to pursue ethical business practices.
According to recent research from JAGGAER, procurement professionals see many benefits of implementing generative AI technology. They include streamlining source-to-contract processes by providing quick access to valuable insights, simplifying product demand analysis, and automating bid evaluations while reducing administrative burdens. In addition, AI enhances supplier management, risk assessment, and negotiation processes, serving as a central communication hub to streamline procurement workflows.
Research conducted in the USA by Gartner in 2023 outlined the top three priorities for CPOs and other procurement leaders in 2024. According to the survey, ‘Strategic sourcing and leveraging spend’ was the most important consideration, with 56% of respondents pinpointing this as their number one priority. ‘Procurement talent and skill development’ and ‘Identifying and Mitigating Supplier Risk’ ranked as the second and third focus areas, respectively.
The research also highlighted several challenges, including persistent inflation and increased cost pressures, which make it more challenging for CPOs to achieve cost savings.
Survey respondents also pointed out that higher contract renewal prices contribute to this challenge. According to the survey, only 14% of CPOs believe they have the necessary talent to meet the function’s future performance requirements, indicating a gap between the required skills and the available talent.
About JAGGAER: Autonomous Commerce
JAGGAER is leading the Autonomous Commerce revolution, a self-governing B2B commerce experience between buyers, suppliers, things (IoT), and partners. Over $500 billion of goods flows frictionlessly through our Enterprise Commerce Network every year. Leveraging AI and machine learning, our intelligent procurement solutions provide enterprise buyers and suppliers with smart-match recommendations that align buyer needs with supplier capabilities. Our solutions autonomously execute many repetitive, behind-the-scenes tasks required to facilitate enterprise commerce. We are Networked, Intelligent, Comprehensive, and Extensible. We are over 1,200 employees strong, all focused on customer success.
