Digital transformation has become a buzzword in recent years, and for good reason. The way business is conducted has changed dramatically with the advent of new technologies, and procurement is no exception.
The countdown is on to our leading virtual technology conference ProcureTECH 23 on 28 and 29 March. Over two days you’ll explore how eProcurement technologies are directly enabling and assisting the procurement function today.
In this blog, we look at the ways in which digital transformation is impacting procurement and the benefits it can bring.
Automation on the rise
One of the most significant changes brought about by digital transformation is the increased use of automation. Automation can streamline the procurement process, making it faster and more efficient. For example, automated purchasing systems can automatically generate purchase orders, send them to suppliers, and track the status of orders. This eliminates the need for manual data entry, reducing the risk of errors and freeing up time for other tasks.
Spend Matters featured an article by Keith Hausmann, CRO of Globality, which states automation will bring a more consumer-like, self-serve buying experience sooner rather than later.
“Automation is having a profound impact across entire organisations. Injecting automation into key enterprise functions including procurement and leveraging it to bridge data silos that inherently exist is dramatically more efficient and effective,” Keith says.
Keith says enterprises will increasingly require procurement technology solutions to be more consumer-like, through intuitive and agile designs. “It will be crucial to have mechanisms that prevent business stakeholders from making a sub-optimal selection of suppliers and guide them toward making the decisions that ensure their costs are truly fair market, especially when their spending is directly impacting the company’s profitability targets.
Hear from Gartner at ProcureTech 23
Big data
Another key aspect of digital transformation in procurement is the use of big data and analytics.
Big data is a combination of structured, semi-structured and unstructured data collected by enterprises to be used for information and machine learning, predictive technology and powerful analytics.
One of the biggest advantages for big data use in procurement often highlighted is forecasting. “Benefits of big data, regardless of industry, is that accurate forecasting makes everything so much easier and less time-consuming,” says Procurement Express.
With the vast amount of data available today, businesses can gain valuable insights into their procurement processes and make data-driven decisions. Examples include identifying trends in spending, cost savings can be made and even assess and monitor vendor performance.
Improved supplier collaboration
Digital transformation also allows for greater collaboration between businesses and their suppliers. Through leveraging digital platforms, businesses can easily share information and collaborate on projects with their suppliers. This can lead to strengthened relationships and better outcomes for both parties.
The use of digital procurement platforms provides a centralizes, digital marketplace where businesses can easily find and purchase goods and services.
This can make life easier for procurement teams, reducing the time and effort required to find and purchase products and services, as well as providing a more efficient way to manage supplier relationships.
Coupa and Infosys to join ProcureTECH speaker line-up.
Finally, digital transformation can boost the overall transparency of the procurement process. With the use of digital tools, businesses can easily track the progress of their purchases and suppliers can provide real-time updates on delivery times and other important information. This helps to improve communication and reduce the risk of delays or errors.
In conclusion
In conclusion, digital transformation is having a significant impact on procurement and is bringing many benefits to businesses. From automation and data analytics to digital procurement platforms and improved collaboration, businesses can use digital tools to streamline their procurement processes and reduce costs during these inflationary times.
As Hackett mentioned during its recent Key Issues Study, “Digital transformation remains a front and centre enabler, but now refreshed with increased rigour”. In 2023 expect the rigour to increase further.
Join us online for ProcureTECH 23
At ProcureTECH23 on March 28 and 29 hear about:
- trends in the eProcurement global landscape
- why Procurement rarely gets the technology it wants?
- the five levers of value in eProcurement business cases
- supply chain data security
- driving better ESG outcomes through technology
- the four stages of eProcurement acquisition – and what can possibly go wrong?
