Procurement is no longer held back due to lack of technology. Today, digital technologies are poised to transform procurement. In fact, thanks to the new technologies, the procurement function is undergoing a massive change and is ready to deliver value to stakeholders rather than looking solely to reduce costs.
Effect of technologies on procurement
Data storage, cloud computing, blockchain and the Internet of Things (IoT) are a few applications that have made the future of procurement bright and effervescent.
With the help of the new technologies, procurement professionals can plan strategic sourcing, perform complex data analysis, better manage their suppliers and ensure efficient operations. Technologies are helping procurement become more proactive and flexible, thereby enabling them to meet the needs of the internal stakeholders and provide intelligent procurement.
Digital procurement solutions allow professionals access to data, something that they previously did not have. So, unstructured data is organised and can be analysed and broken down with relative ease to improve the overall procurement function.
Some of the benefits of adopting digital technologies include:
Forecasting future demand:
Procurement professionals can use artificial intelligence to analyse the current market and then use this data to predict demand in the future. This helps procurement streamline the sourcing and ensure they can meet the requirements of the internal stakeholders.
Managing category spend in real-time:
Machine learning is gaining traction in the world of procurement, and this enables sourcing professionals to not only manage to spend in real-time but also categorise spend. As a result, they can see where they need to implement strategies to reduce costs without affecting quality.
Taking advantage of smart contracts:
Blockchain can assist organisations in creating smart contracts that let them keep track of pricing, contract renewals and penalties. Smart contracts can work to streamline suppliers and ensure the best quality while keeping prices down.
These are a few benefits that procurement will enjoy in the coming years once there is widespread adopting of the maturing and emerging technologies.