Digital Procurement
A well performing procurement organisation can make a substantial difference to the bottom-line success of a business. This is needed more than ever in this post pandemic climate, where increasing global trade tensions, an unprecedented energy crisis and skyrocketing inflation create challenges companies have never had to deal with before.
To effectively control costs and manage risks in this tough economic climate, procurement organisations need to be agile and responsive. The procurement organisations that excel today proactively use technology and digital tools to boost their efficiency and performance.
At Hudicor, we believe digitalisation will continue to grow in importance because of the added value that can be achieved through digital procurement.
Delivering more value with digital procurement
By automating the routine transactional processes that are particularly time-consuming and error-prone, digitalisation can bring increased efficiency to procurement organisations. As well as the obvious benefits of faster, more accurate processes, this leads to administrative workloads being reduced. Staff can then be upskilled to focus on more strategic tasks such as supplier relationship management (SRM) and category management, thereby delivering greater value to the organisation.
Digitalisation of procurement also delivers vastly improved data transparency and analytical capabilities. The resulting insights can deliver additional value in many ways, including better understanding of spend and usage trends, tracking contract usage and the ability to plan more accurately. In turn this delivers better spend control, closer management of supplier performance and better decision making.
Furthermore, digitalisation can improve the agility of procurement organisations which is crucial in today’s economic climate. The real-time availability of data and market insights allows procurement professionals to react quickly to unexpected economic changes such as the outbreak of a pandemic or a severe energy crisis.
Finally, digitalisation holds the key to embedding transparency throughout entire global supply chains. With total transparency of the movement of goods through its supply chain, the whole company can be more easily aligned around its common business goals; individual areas such as business operations and inventory management can be improved; and environmental, social and governance (ESG) performance can be clearly measured.
Digitalisation is often time-consuming and complex, so it’s key to choose the right tool for your organisation. However, choosing the right tool isn’t easy as it needs to maximise benefits, fit well with your organisation, and be cost-effective. There are so many different tools available, the choice can be overwhelming.
Reach out to us if digitalising procurement is on your agenda
