Smoother Logistics Among Top Priorities for Business Upgrades

Businesses throughout the economy felt the pain of pandemic-induced supply chain breakdowns.

Now, those same businesses are increasingly investing in upgrades to make sure disruptions to their procurement processes don’t happen again, or if they do, they at least don’t wreak as much havoc.

That’s according to the latest research in PYMNTS’ March 2023 report, “Digital Payments: Modernizing Procurement Processes,” a collaboration with Corcentric, which finds that investments in logistics and supply chain management innovation tops the list for businesses across industries looking to shore up their procurement functions and further drive operational resiliency.

Businesses operating within industries dependent on supply chain stability to get their products into customers’ hands report more plans to invest in modernizing their procurement functions, particularly manufacturers and retailers at 55% and 54% respectively.

Still, while retailers and manufacturers depend on a steady flow of products for their shelves and raw materials to make goods, they aren’t alone.

Industries like finance and insurance, as well as healthcare, also told PYMNTS  they recognize that the smooth performance of a business’s procurement function is vital to its success.

About 1 in 3 healthcare companies (34%) report plans to invest further in their logistics and supply chain management systems, while 4 in 10 (40%) finance and insurance companies say the same.

Purchase order automation is also more important for finance and insurance firms (26%) than it is for healthcare firms (17%).

Businesses investing in digital technology to support procurement operations are doing so primarily to modernize operations, expand business opportunities, and reduce costs.

These businesses expect their investments to pay off by ensuring that these systems improve the efficiency of their processes for purchasing goods and services during normal business conditions and enabling quicker responses to future disruptions.

Companies investing in digital procurement technology are most likely to prioritize improving their supply chain and logistics management functions.

PYMNTS’ data, based on a survey of 250 CFOs across healthcare companies and finance and insurance business, indicates that healthcare companies and finance and insurance businesses are placing more of an emphasis on expanding their business through these investments than retailers and manufacturers.

More than 1 in 4 healthcare companies (27%), and more than 1 in 5 finance and insurance businesses (22%) say they are modernizing their procurement technology with innovative digital upgrades because they have outgrown current systems and want to improve their customer experience.

To better understand how digital platforms can increases your own organization’s opportunity for operational resiliency and sustainable success, download PYMNTS’ free March 2023 report, “Digital Payments: Modernizing Procurement Processes.”