Updated · Originally published
How has your business changed in the last three years? How has business globally changed? There is little doubt that the COVID-19 pandemic, with its problems, dilemmas, and logistical nightmares, has affected how many companies operate. And many of the adjustments and emerging trends will likely become standard in years to come. Let’s talk about what this means in the area of procurement.
The pandemic disrupted trade, education, government, healthcare, and more. In fields other than healthcare, many employees began working from home. Procurement had to fill new technology and security requirements for remote employees quickly. Hard-pressed procurement departments struggled to adapt legacy IT systems to meet new internal and external demands.
We’ve spotted five key procurement trends that could become mainstream. Keep reading to identify how you can evolve your procurement department from “disrupted” to “digitally transformed.”
Embrace the Cloud
Innovative, cloud-based apps can support procurement functions ranging from demand prediction and inventory optimization to supplier management and risk reduction.
allows companies to scale their operations as business needs fluctuate. Benefits of the Cloud include:
- The ability to mix and match your own tech stacks allows for a more customized solution.
- The elimination of custom coding saves time and resources.
- You save time and money by not paying for features you don’t use.
- You increase your company’s autonomy and flexibility.
- Cloud technology contributes to better decision-making and real-time information sharing.
- Imports, exports, and manual keying are a thing of the past, resulting in greater accuracy and regulatory compliance.
Use AI and Data Analytics
AI (artificial intelligence) allows your computer-controlled processes to function with minimal manual involvement. Procurement applications range from contract management and automated payments to and supplier resource management.
You can automate and streamline time-consuming tasks like data entry. And you can gather insights from large and complex data sets. CPOs are deploying AI-enabled analytics to identify opportunities for bottom-line impact, ranging from process improvement to management reporting.
Go Mobile
The use of mobile technology is undoubtedly here to stay. So many employees are working out of the office or out of the country. Equipment and security measures must remain current. Businesses can be ready to handle the increase in off-site employees by investing in mobile technology to support procurement and provide internal and external customers with a rich user experience. Custom mobile apps for Apple or Android allow end users to access procurement functions and free them from traditional time/space limitations.
Also, with custom mobile apps, the procure-to-pay (P2P) process is more accessible and efficient for everything from purchase order processing and contract management to supply chain management.
Facilitate Self-Service
One advantage of digital transformation is the ability to offer self-service, thereby improving the user experience for all involved. The current generation wants control over their purchasing experiences. Speed, selection, and convenience are a must in both personal and business transactions. The procurement process is no exception. From onboarding and offboarding to everyday vendor interaction, a self-service system will benefit all stakeholders.
For procurement departments, self-service technology eliminates tedious AP tasks like invoice uploading and data entry. It allows businesses to identify the best deals and make informed decisions. Compliance is easy, accurate, and verifiable.
For vendors, self-service provides a more effortless user experience supporting continued loyalty. Also, it expedites the bidding process by eliminating phone calls and on-site sales calls.
Build Supply Chain Resilience
Supply chains can be affected by any out-of-the-ordinary event, and the impact may be felt for quite a while. Reinvent your supply chain to be more resilient, collaborative, and efficient
Supply chain resiliency measures emerging in procurement include:
- Diversifying supply chains by engaging local vendors and manufacturers, multi-sourcing, and using alternate delivery routes.
- Spending more time on supplier due diligence
- Switching from “just-in-time” buying to strategic “just-in-case” stockpiling
- Reshoring product production and sourcing rather than using higher-risk offshore options
- Improving relationships with suppliers to ensure they value your business
Resilience isn’t just about short-term survival. You’ll want to set your organization up for long-term changes. Regulatory bodies and public opinion will require businesses to deal with firms with wider diversity and ensure sustainable procurement. A new level of accountability will demand procurement teams to know their vendors’ vendors—and their upstream value chains.
Some CPOs believe that the rapid response period to maintain supply continuity has either passed or will end soon. Others realize that we are dealing with a new normal. Proactively evolving operations will help your business survive whatever is ahead. A more adaptable procurement model that leverages the best technology, from cloud computing and native mobility to social collaboration and AI-enabled decision-making, will set you up for success.
Pairsoft delivers the most robust procure-to-pay platform for mid-market and enterprise organizations with direct integrations to Microsoft Dynamics, Blackbaud, NetSuite, and Sage ERPs.Are you ready to transform and future-proof your procurement processes? with our PairSoft team.
By PairSoft,