In the latest episode of our Spend Sessions Podcast, Amanda Prochaska, founder and CEO of Wonder Services, shared her insights on modernizing procurement models. With a rich background as a senior sourcing leader at companies like Kraft Heinz and MGM Resorts, Amanda brings a unique perspective to the table, focusing on why the vast majority of procurement transformations fail and how to overcome these challenges.

Understanding the Failure Rate in Procurement Transformations
One of the most striking points Amanda made is the high failure rate of procurement transformations. Approximately 70% of these initiatives do not achieve their intended goals. Amanda attributes this to several factors:

1. Lack of Clear Plan: Many organizations embark on digital transformation without a clear understanding of their goals or a detailed strategy to achieve them.
2. Resistance to Change: Employees and stakeholders often resist changes, particularly when they are not adequately involved in the transformation process.
3. Insufficient Training and Support: A lack of proper training and support can leave employees feeling unprepared to adopt new technologies and processes.
4. Inadequate Leadership: Effective leadership is crucial in driving transformation. Leaders must be able to inspire and guide their teams through the change process.

AI and Gen AI in Procurement
The conversation also delved into the transformative potential of AI and generative AI in procurement, exploring how this game-changing technology can significantly enhance efficiency and accuracy in various procurement functions including:

1. Automating Routine Tasks: AI can handle repetitive tasks such as RFP creation, invoice processing and order tracking, freeing up employees for more strategic activities.
2. Enhanced Data Analysis: AI can quickly analyze large volumes of data, providing valuable insights that can inform decision-making and strategy development.
3. Predictive Analytics: By leveraging AI, procurement teams can anticipate market trends and supplier performance, enabling more proactive and informed decisions.
4. Improved Supplier Management: AI can help in assessing supplier risks, performance, and compliance, ensuring more reliable and efficient supply chains.

Six Steps for Successful Transformation
From Amanda’s extensive experience, she highlighted the following key takeaways for leading a successful digital transformation in procurement:

1. Develop a Clear Vision: Start with a clear understanding of what you want to achieve and how you plan to get there.
2. Engage Stakeholders: Involve all relevant stakeholders from the beginning to ensure their buy-in and support.
3. Provide Training: Equip your team with the necessary skills and knowledge to navigate the new systems and processes.
4. Lead Effectively: Strong leadership is essential. Leaders must be able to inspire, guide, and support their teams throughout the transformation journey.
5. Leverage Technology: Use AI and other advanced technologies to enhance efficiency and decision-making.
6. Foster Diversity: Promote diversity within your procurement team to bring in different perspectives and drive innovation.

For the full conversation with Amanda Prochaska, listen to Episode 5 of the Spend Sessions Podcast here.

Contact us for a demo of Globality’s autonomous sourcing platform – winner of Best Technology Provider at the World Procurement Awards – to see how it uses cutting-edge AI, built from the ground up, to deliver 70% efficiencies and 10-20% cost savings instantly.