As with every industry, technology is quickly changing the way we do business. Procurement is no exception to this new reality. While procurement and supply chain management professionals increasingly serve as trusted advisors to CFOs and other C-level executives, finding opportunities to save money remains a top priority.
To meet this need, technology can be used in several ways to better perceive value. This is done through heightened spend transparency and better category management. Also, it is accomplished by more effective supplier relationship management, as well as advanced leveraging of data and analytics.
Benefits of Technology for Sourcing
The purposeful use of smart analytics and technology can bridge the gap between the value created from strategic sourcing initiatives and the bottom line. The high degree of granularity offered by advanced technologies enhances business agility and drives continuous process improvement. This also supports an operating model that advances business excellence within procurement and supply chain functions.
Better metrics for procurement ROI, contract compliance, contract life savings, process efficiency and invoice accuracy can all be identified to bring about best-in-class procurement and enhanced supply chain capability and resource management.
Technologies Impacting Procurement
Artificial Intelligence (AI): AI can be used in procurement to analyze data and predict future trends, identify cost-saving opportunities, and automate manual processes such as invoice processing and supplier onboarding.
Robotic Process Automation (RPA): RPA can automate repetitive tasks such as data entry, order processing, and invoice validation. This frees up procurement professionals to focus on more strategic activities.
Blockchain: Blockchain technology can be used in procurement to create a secure, transparent, and tamper-proof record of transactions. In turn providing greater visibility and traceability throughout the supply chain.
Internet of Things (IoT): IoT sensors can be used to track goods and inventory in real-time, providing greater visibility and control over the supply chain.
Predictive Analytics: Predictive analytics can be used to forecast demand, identify potential supply chain disruptions, and optimize inventory levels. This helps organizations make better procurement decisions.
Cloud Computing: Cloud-based procurement solutions offer greater flexibility, scalability, and cost-effectiveness than traditional on-premise software solutions. As a result, organizations are able to manage procurement processes more efficiently.
These are just a few examples of the many new technologies that are transforming the procurement industry. Check out the latest trends impacting the procurement industry by clicking HERE.
Technology is proving a major boon for a huge range of procurement and supply chain functions. Therefore, allowing companies to leverage valuable data, enforce compliance through policy, track spend for greater visibility, and drive increased operational performance.
Today’s sophisticated technology and analytics can also be used to create an effective strategy for supply management and procurement. ProcurePort can help you to do just that!
ProcurePort uses a combination of exclusive technologies to simplify your procurement processes. Click here to learn more, or schedule a free demo to see how we can streamline your sourcing process.
