Procurement might not always seem like the most exciting corner of the business world, but 2019 has brought us some truly riveting developments. Here’s a peek at some of the most significant and pertinent procurement news.
The Drive for Digitalization
In the past, most procurement tasks were carried out manually and involved exchanges of papers from RFIs to RFPs and all manner of tendering communications. Today, everyone is moving towards digital platforms that can centralize and simplify the chaos.
The combined increase in corporate services spending along with increases in the number of service providers has been driving the procurement field towards digitalization. Two procurement areas that are predicted to become the most efficient from digitization are vendor management and RFPs. These two functions are markedly more efficient, productive, and less costly when using a digital procurement platform.
Some stalwart traditionalists may object, arguing that tendering documents on paper are more tangible. The modern counterargument to this antiquated ideal is that having the information centralized and on your screen is infinitely more profitable.
With only 3% of respondents fully digitized, the transition is still in its infancy. That means that firms who adopt digitization in their procurement operations early on will be years ahead of competitors. You are likely to hear much more about the importance of going digital in procurement news throughout this year and the next.
Cyber Security Has Been a Focus
It seems only natural that with the increase in the digitalization of procurement operations, the value of cybersecurity increased in tandem. With so many companies digitizing procurement functions, you need a platform with robust security features. ProcurePort is one of the leaders in providing superior cybersecurity protection for businesses.
One of the most essential practices this year has been auditing the cybersecurity abilities of suppliers. If the supplier has an abundance of significant cybersecurity weaknesses, you will take on a much greater level of risk as a buyer.
It’s Not All About Cost Reduction
As many of you know, there has traditionally been a lot of focus on cost reduction when it comes to procurement. It’s only natural, everyone wants to save money and no one wants to buy more than they need. One of the greatest revelations in 2019 is that procurement holds an important place in business strategy. You’ll find the true value of procurement is in the details by finding the answers to questions like will the supplier acquire new assets or undergo a change in ownership after your first contract.
Using procure-to-pay software gives you powerful tools and the exceptional advantages of automation. Costs will be cut, but you’ll also gain a deeper understanding of contracts in play. Your team will be able to view a supplier’s data at any time from one centralized platform.
With the ability to see your supplier’s information updated in real-time, you’ll make better purchasing decisions and command higher profits. P2p software also lowers your risks while optimizing your sourcing volume and visibility. Other benefits include streamlined document matching, certified data quality, and free-flowing data from every corner of the supply chain.
Purchase requisition software is also bringing companies strategic benefits that go far beyond cost reduction. The one thing more valuable than money is time, and purchase requisition software can save you a lot of it! The lag between the delivery of paper documents and getting a wet ink signature has become unsustainable. The amount of time that is saved simply by using purchase requisition software is one of the most important procurement technologies to adopt in 2019.
The Value of AI in Global Procurement Is Rising
As AI continues to progress, so does it value and in 2019 it proved capable of delivering excellent value in terms of precision. Work that is performed and enabled by AI is done correctly every time, cementing its position as an essential component in procurement.
Some of the most exciting elements in the development of AI applications in procurement is the technology’s ability to help make informed decisions on suppliers. An encouraging 54% of respondents reported that they feel AI will improve organizational control, efficiency, and transparency.
Stay on Top of Procurement with ProcurePort
ProcurePort isn’t just your best source for procurement news, it’s the best period. Not all platforms can deliver the same quality. When you use ProcurePort’s specialized software, your firm will become more efficient, productive, and will have a serious advantage over competitors.
You’re losing money on every purchasing decision made without ProcurePort. Contact us today, and start enjoying the cost savings.