Technology has become integral to every business operation. It is viewed as a catalyst for change, and the procurement industry is certainly not immune to it. Technology has helped procurement get access to new suppliers, ensure optimal compliance, boost market coordination and eliminate human errors, while enhancing speed and capacity. Advances in technology do not just improve the performance of buyer organisations, but also that of suppliers.
Embracing technology in procurement
Already technology has made inroads in many procurement functions. Most technologies adopted have been used to track savings and spend analytics. This is primarily because, in a globalised and digitally connected world, businesses are under pressure to cut spending and streamline processes to cope with the challenging economic climate.
Companies are already utilising reporting dashboards and contract management systems to ease procurement related challenges. Businesses in the UK are also deploying software for market intelligence and supplier performance management.
Decision makers in procurement propose that automation is a must for procurement transformation. Most believe that they should channel investments into talent development, process enhancement and automation. However, the industry is battling with capacity issues as procurement teams are under tremendous pressure to meet tight deadlines.
To bring about procurement transformation, organisations should look to decentralise procurement. When this happens, the chances of process enhancement will increase. Also, if an organisation is using C-Suite to improve procurement, they should also invest in analytics. This will help in big data analytics and in ensuring optimal procurement decisions, which are possible with predictive analysis and form the backbone of modern-day procurement.
Procurement should also consider robotic process automation as it helps in cost reduction, productivity gains, better compliance and enhanced accuracy. This disruptive technology has brought about major procurement transformation as sourcing professionals can focus on innovative and strategic tasks rather than being bogged down by mundane and routine responsibilities.
Ed founded Odesma in 2014 with the explicit intent of creating a new kind of procurement consultancy founded entirely on cloud principles. Deploying best-of-breed subject matter experts alongside the best on demand technology to deliver rapid and effective change for customers.