Using tools to digitize and automate the procurement process enables your procurement organization to speed things up and increase operational effectiveness.
It is more than just software. Digital transformation requires a unique combination of people, processes, and technology that are all interconnected to achieve optimal results.
Using technology to empower relationships and increase efficiencies gives a procurement organization a competitive advantage.
Digital transformation in procurement is not just about technology. These types of changes in a business require people, processes and best practices to effectively implement a program to increase efficiencies throughout the organization.
CPO’s today realize that it is all about data. Converting data into actionable analysis that benefits all stakeholders involved is a key priority in digital transformation projects.
Procurement organizations have historically relied on ERP systems and procurement software to manage spend and optimize data.
Leaders will admit that there has been a lack of value that has been realized. Lack of technology is not the reason that many organizations have not been able to put data into action.
Many software vendors have failed to live up to expectations and have left CPO’s questioning the true value of some of their IT investments.
But is that their fault?
Many best in classes organizations are now looking into procurement from a holistic vantage point to identify where changes in processes and practices will produce results.
Most software vendors will promise that their spend analysis tools enable clients to increase spend under management to 75%-80%.
Best in class procurement organizations existed before many of these technologies were even available. Digital transformation will require people and processes to support new technology to maintain spend visibility.
By automating strategic sourcing insights and business intelligence, procurement organizations have more time to develop the strategies that enable course corrections and support best practices.
ERP systems and other software will support many of the transactional procurement activities required of an organization. Using data and analysis from previous sourcing events or a simple RFI or RFP is usually enough.
Complex categories that are difficult to source present other challenges. Digital transformation programs that enable strategic sourcing will require supporting processes.
Emerging technologies and procurement tools are now available to provide teams a roadmap that uses data and analysis to develop category specific strategies built on best practices. They support digital transformation projects and give teams a competitive advantage.
Our reports have helped to augment the process by decreasing strategy development times by more than 30%.
Collaboration continues to be on the forefront of priorities for most CPO’s. World class procurement organizations rely on digital transformations that get everyone on the same page. This includes all internal stakeholders – not just the procurement organization.
Technology enables procurement organizations to collaborate with shared file spaces, forums designed for chat and video. Procurement leaders can now also track activities in real-time
Digital transformation demands that everyone is on board. The software applications are only as good as the people that use them. Underutilization will impede any goals surrounding collaboration.