In today’s highly competitive business environment finding the opportunities for cost savings is possible through greater spend transparency, improved category management, more effective supplier relationship management, and extensive leveraging of data and analytics. Modern businesses are leveraging procurement technology to achieve these.
To optimise the benefit Procurement Technology by enhancing and automating business solutions to both internal and external stakeholders, businesses need to be flexible and open to adoption of new technology.
Only the purposeful use of Procurement Technology like smart analytics and technology can bridge the gap between the value created from strategic sourcing initiatives and the bottom line.
To add the value created through strategic seducing to the bottom line, businesses need to prudently use the smart analytics and technology.
In Strategic Sourcing, utilizing supplier discovery platforms can be very effective when deploying go-to-market strategies. Technology can help to tie cost drivers to the value proposition in order to eliminate wasteful processes.
Technologies such as the cloud/SaaS and mobile solutions used to support data integrity, promote a synergetic relationship between different business units, such as procurement, IT, legal, and finance, allowing for better collaboration and budget control.
By streamlining tactical activities to free up capacity for strategic sourcing, procurement and supply chain functions can significantly enhance the overall source-to-pay experience.
Some popular tools of Procurement Technology
E-sourcing tools and contract lifecycle management solutions, for instance, are commonly used to bring about faster negotiation and contract cycles, better supplier relationships, increased efficiency, and accelerated revenue from cost savings.
Procurement people spend a major portion of their time in repetitive task which are inefficient, costly, and slow. Automation of procurement activities can solve these problems.
Instead of the traditional manual method Procurement process automation are managed using technology.
The benefits are Increased Speed, Improved efficiency, Better control and visibility, increased benefit to stakeholders by giving more results with less resources.
Why selection of right Procurement Technology is important?
Select of right technology in important. Successful implementation of Automation technology depends on two factors, the software is how much user-friendly and the availability of cloud option.
Automation can be implemented in complete procure-to-pay cycle that consist of Requisitions, issuance of purchase orders, receipt of purchase orders, matching of purchase orders & making payments.