The work of procurement has now largely become digital. This is a positive development as procurement has gone away from being a mere operational support, to a central strategic requirement. The right procurement methods can go a long way in fostering business innovations across the organization. Procurement can help achieve the organization’s strategic objectives in several ways such as by improving overall efficiency and effectiveness. Automated and agile operations using robots and AI can help make this a reality. It promotes frictionless collaboration across functional teams. A study was conducted by Bain and Company to understand what parts of digital procurement are most crucial to businesses. These are – inventory management systems, contract life cycle, spend analysis, supplier quality management and multi-domain master data management. Besides inventory management, e-voicing and demand forecasting had the highest adoption rates. In addition, recovery audit and transport optimization saw the highest satisfaction rates. Another must to ensure the proper digital procurement systems, is to have clean and high-quality data warehousing, so it becomes easier to use. The operating model must be based on agile methods. There must be the right digital entrepreneurial talent within the firm.

Source:https://www.bain.com/insights/digital-procurement-the-benefits-go-far-beyond-efficiency/

Uploaded Date:27 September 2018