The procurement process is not simple and straightforward. Procurement incorporates purchasing planning, supply management, supply-chain handling, sourcing methods, logistics, price negotiation, inventory control, risk management, legal and value analysis. Procurement involves a lot of risk assessment to obtain the best deal from suppliers to boost corporate performance. The manual procurement process is very labour-intensive, time-consuming and consists of a lot of paperwork.
Digital technologies assist procurement in increasing collaboration, analytics and engagement using devices along the entire procurement value chain. This helps to improve workflow, speed, and efficiency. Control expenses with spend analysis, accelerate purchasing with faster order. Leverage technology can eliminate paperwork with cloud-based document management. Reduce human error in invoice evaluation and payment. With the help of technology, it can maintain a complete audit trail and monitor performance with detailed reports. It can be conducted effectively with 360 visibilities and increase the transparency of the whole process.
The key is to analyse how automatization can positively impact the business environment, changing a business’s agility to react and essentially changing its whole value proposition and overall organization.
The Digitalisation Trend of Procurement
Digital procurement is the application of information and technology to help raise human performance in procurement. It does not require to imply the implementation of new technologies tools. On the contrary, it can suggest how human performance can be expanded using existing devices to help drive better performance expectations, leading to top, bottom-line results. It also implies internal adoption of this change. The use of Cloud, Mobile Technology, Social Media, Big Data and RPA can be leveraged to achieve strategic procurement objectives such as cost reduction, risk mitigation, innovation, and efficiency.
Blockchain Technology for Smart Contracts
Blockchain technology creates opportunities for procurement to improve traceability and security product sourcing and supply chains. Blockchain smart contracts refer to agreement that runs when predetermined conditions are met. It can facilitate smooth transactions where there is no intermediary involvement or time loss. It can automate a workflow, triggering the following action when conditions are met. Only parties who have granted access can use to view contracts, make revision, and accept changes.