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Premjith B P K
e.motion

premjithbpk|India

Premjith leads the Digital Marketing team at Aufait Technologies, a top-notch SharePoint development company. He also heads the SEO team at Mindster, a frontier mobile app development company in India.


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How to Modernize the Procurement Process?

Nov 08, 2018

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When the procurement function is considered, the mistakes in the supply chain can result in wasted time, increased costs, damaged relationships and in some cases collapse a deal with a supplier altogether.

As we see and read a lot about procurement today, these negative impacts can be avoided easily by moving from the paper-based or manually intensive processes that are till date used by many procurement groups. To improve, many leading companies are trying hard to move away from the ineffective manual processes to an organized digital process that reduces errors and optimize the entire procurement process with the help of an e-procurement software. Any part of the process that can be digitized beginning from the order entry to the customer shipment means significantly improved bottom line.

Four key ways were introduced by the Hackett group, which helps in digitalizing the procurement process. According to those procurement experts, the digital transformation is defined as the process of transitioning the aspects of the traditional business into digital business, mainly by apply to innovate. The key to digital business according to Hackett is to utilize digital technology in services and products and value networks to create value and gain business outcomes. Companies that are looking forward to ceasing the gap of digital capability should mainly focus 4 key areas they have identified in the report. They include:

  • Improve stakeholder experience

  • Arrange procurement as a service portfolio

  • Utilize technology to drive digital transformation

  • Setting a foundation for analytics-driven culture

We also see the e-tendering system trending in the public sector. E-procurement is a powerful tool for local economies. The state and the local economies spend a large amount of money to build highways, roads and provide various services required every year. Surveys are conducted to identify and prioritize the top procurement and technology issues that are faced by the government. Many top companies stay firm that the digital transformation or the future proofing will be the core of the modern procurement company. To remain competing in the global marketplace, the procurement team must pay close attention to the continuously evolving landscape. Though more difficult they must be prepared to have a solution for the issues that are not yet detected.

Therefore, with the apt tools and the right strategy, procurement is balanced to benefit from digitization given its transaction and the process based nature. While the operations are highly dependent on the shop floor activity, the e-procurements role requires greater importance on digital tools to help them cut back time spent on the rote tasks and improve the worker productivity.