In recent years, almost every organisation has seen a transformation of its procurement processes, thanks to the rapid advance of technology. Today, procurement has access to standalone tools and applications as well as unified digital platforms to improve and streamline the procurement process. But procurement technology will continue to improve and evolve, and businesses have to keep pace with each changing trend. This isn’t just so that they can automate spend, but also so that they can enjoy optimal spend management and hopefully see a noticeable cost reduction.
Here are three procurement technology trends that businesses have to watch out for in the coming years.
Experts believe that procurement organisations will begin shifting to predictive analysis with an aim to make sourcing more strategic. Using Big Data and Internet of Things (IoT) applications, procurement professionals will be able to implement predictive analysis to hedge against the price of raw materials while automating the procurement process. This, in turn, will boost efficiency and accuracy.
Internet of Things
The full integration of IoT with the supply chain will allow procurement teams to track the location and ascertain the condition of their products while they are in transit. In fact, some experts predict that IoT technology will allow procurement professionals automatically and remotely assess their inventory to help them manage their cash flow in a more efficient manner. It will also work to minimise human error within the entire supply chain.
Adopting procurement technology
There is no doubt that procurement technology is improving by leaps and bounds. However, many organisations are still contemplating whether the technology is worthwhile. Using procurement technology systems, organisations can access customised technology and have everything they need on a single platform via one vendor rather than dealing with multiple vendors and suppliers.
Using the right procurement technology will allow an organisation to save money by ensuring optimal spend management and also allow the procurement team to transform into a strategic business partner.
Steve has over 28 years of success as CPO, MD and Procurement BPO leader in a range of industries. Steve is COO at Odesma, responsible for Odesma’s delivery capability & infrastructure.