Procurement has to always be agile and flexible in order to be able to handle the constant state of flux. Instead of being just concerned with cost saving, procurement has transformed into a strategic role where it is expected to make innovative, efficient and sustainable purchase decisions while keeping a close watch on market volatility.
That is why procurement technology has become imperative. Not only does technology help reduce costs, but it also makes procurement more productive, proactive and efficient. With the assistance of technology, procurement can serve internal and external stakeholders better and help the organisation become more competitive.
Here are some procurement technologies that CPOs should be looking to adopt to ensure efficiency and productivity.
Automation can make procurement more efficient and help it manage the different procurement processes with relative ease. With automation, it is possible to identify the needs of the business, get rid of repetitive processing, manage suppliers, mitigate supply chain risks, track spend and forecast future demands more accurately.
Many organisations are shifting to cloud-based platforms, which can help in cost-effectiveness, managing the global supply chains and being energy efficient. The best part is that with so many different cloud solutions, migration is never a problem and procurement can find a whole range of cloud-based tools and solutions to suit their requirements.
Analysing big data allows procurement to tackle certain issues that can have an effect on its performance. For example, using resources inefficiently or making poor decisions can be averted with data and its analysis. When big data is used properly, it can bring about procurement transformation.
Many tasks in procurement are repetitive but necessary. These tasks can now be performed by artificial intelligence (AI) applications. Using AI can also minimise errors and inefficiencies. When this procurement technology is used, it can help procurement become more agile and responsive to market fluctuations and the needs of the stakeholders.