In recent years, procurement has changed tremendously. The ascent of technology has hastened this change and trends show that sourcing will continue to undergo many evolutions as new technologies are introduced. The speed with which organisations embrace this change will determine their success and sustainability.
Today, organisations should not only be aware of the existing technologies, but they should also know how to utilise these to their benefit. This will allow for seamless digital transformation while improving the stakeholder experience. Here are the three key areas that companies should focus on if they want to bring about procurement transformation to enjoy a competitive advantage over their rivals.
The sourcing team has already mastered the art of cost reduction through spend analytics, as we covered in an earlier blog. However, to boost the value of the stakeholder and create an environment of trust and efficiency, it is necessary to improve stakeholder experience. This way, stakeholders feel more valued as opposed to being regarded as data points. This, in turn, will boost efficiency. Remember, you can create optimal stakeholder experience by segmenting this group and then
Spend analytics and other data insights
The sourcing team should not consider itself a silo. It is, in fact, one of the most influential departments in the company as it helps to increase value throughout the organisation by optimising its efficiencies. This where data, including spend analytics, comes into play. By using technology to filter vast amounts of data from different sources and analysing it carefully, sourcing professionals will be able to make prudent predictive forecasts to mitigate business risks and benefit the organisation as a whole.
If companies focus on these three key areas, it can bring about procurement transformation and improve the overall sourcing process.
Nick has over 30 years procurement experience in consulting, outsourcing and line roles within industry with international experience across many sectors and industries and led many procurement programs with blue chip organisations.