When undertaking procurement transformation, all aspects related to supply chain management must be able to keep up with the pace of change, as well as evolving priorities. It not only helps to minimise costs, but it also boosts efficiency allows procurement employees to create new opportunities to take more responsibilities and improve their skills so that they can make a meaningful contribution to their organisations.
Automation for efficiency
Today, cost reduction is passé in procurement. CPOs are looking to focus on efficiency as once that happens, cost automatically reduces. Sourcing departments are shifting to digital procurement to increase efficiency by streamlining procurement processes and eliminating tasks that are labour-intensive.
When adopting digital transformation, it is essential to check the total cost of ownership. Not only should the technology be easy to integrate, but it should be easy to adopt so that you immediate value from the very first day.
Simplifying the procurement process
Today, the mantra in procurement is simplification, where CPOs look to be part of a marketplace where basic commodities are available at prices, terms and conditions that have been pre-negotiated. With sourcing and negotiation out of the way, it helps to improve procurement’s efficiency.
When the procurement process is streamlined and less complicated, it makes supply chains more agile. Digital transformation requires procurement to get access to real-time product data to help them make quick and accurate buying decisions. So, CPOs should ask their key suppliers to furnish e-catalogues.
Benefitting from supplier knowledge
Procurement transformation helps CPOs collaborate with suppliers who value innovation, quality and continuity besides ensuring the best price. It is essential to manage supplier performance for the procurement of indirect goods and services. This requires CPOs to work closely with the supplier, who can leverage their knowledge and competence to ensure successful and cost-effective procurement.
By opting for digital transformation in procurement, organisations can maintain accurate data and make suppliers into procurement partners in the true sense. This will ensure the success of the business.