In 2021 and beyond, digital procurement systems are giving procurement teams the power to play a larger strategic role in accelerating business innovation and maturity.
Through artificial intelligence and robotic process automation, digital procurement frees up employees’ time so they can focus on long-term initiatives and strategic activities. It can also take organisations to new levels of cost saving and market competitiveness.
If you’re considering implementing a digital procurement system in your business, let’s take a look at the top five benefits of digital procurement you’ll experience as you climb the value curve.
What is digital transformation in procurement?
The digital revolution has changed virtually every process in our lives, and it’s no longer a shock to hear that something has ‘gone digital’. Procurement is no different.
Procurement digital transformation involves a number of updates:
- The basic switch of converting analog processes into digital ones. For example, by incorporating Portt as your digital procurement partner and investing in software that revolutionises the way you do business, you move from a pen-to-paper and spreadsheet approach into a more seamless and efficient digital procurement process.
- The active use of digital procurement processes by employees, which has a noticeable impact on operations. Tasks and processes are monitored to ensure they’re having a positive effect, such as time tracking to see if automation efforts are really paying off.
- Full digital procurement transformation, where a company invests in digital technologies through their entire process cycle and adopts a ‘digital first’ model at every stage, in every department.
How does digital transformation influence procurement?
Procurement digital transformation can influence procurement through:
- Advanced analytics and data-driven optimisation, leading to better insights and more fruitful interactions across the value chain
- Down-stream procurement activities being transformed by automatic tools, dramatically increasing process efficiencies
- Moving procurement to the centre of organisational value creation by connecting your business with a network of beneficial external partners
What are the immediate impacts of implementing digital procurement systems?
The benefits of digital procurement go far beyond mere efficiency (although this is a major advantage). Let’s explore the top five.
1. Providing unparalleled data and analytical insight
Digital procurement can quickly become a trusted and highly influential business advisor for your organisation with the power of analytical insight. Data reporting features in procurement systems allow you to quickly and easily filter through large volumes of information from a wide variety of sources, giving you the capability to see areas of improvement and new opportunities with clear eyes.
2. Seamless digital supply chain and supplier management
Digital procurement transformation allows you to integrate all customer and distributor data into one system, optimising your supply chain’s performance and capturing productions (if this is a function of your business). This leads to inventory costs and lead times working to create both a better customer experience and better supplier performance.
3. Streamlined processes and tools
Another benefit of digital procurement is making processes simpler through automation. From collaborations, to negotiations, sourcing and service management, digital procurement allows you to remove the manual interference that bogs down your staff, and instead create a more sustainable workforce that’s free from the burden of tedious tasks.
4. Cost saving and operational efficiency
Undergoing a digital procurement transformation means you’ll have a complete overview of your organisational budgets in one place, so you can keep a tighter rein on your business’s spending and even receive alerts if you’re exceeding an allocated budget in a particular department.
Managing your procurement and supplier relationships through a single portal also means you’re able to avoid duplicate purchasing and achieve economies of scale through taking advantage of bulk discounts. You’ll also be able to easily analyse your project and departmental workflows, meaning you can see whether there’s an area where staffing is surplus to requirements, or if employees could be better placed in areas needing a bit of a boost.
5. Enabling your company’s broader strategic vision
Digital procurement also creates new strategic opportunities for your business. Elements of digital procurement are vital input for your organisation’s digital roadmap, and can help to accelerate innovation, maturity and improved ways of working.
For example, a digitally-savvy procurement team can enable your company to partner faster with the best suppliers, as well as leading change through rethinking operating models, partnerships, talents and culture. By taking away the burden of manual processes, staff have more time to step back and look at your business’s bigger picture.
Take your business into the new age
The benefits of digital procurement transformation are plentiful and well worth the initial financial and time investment.
If you’d like to discuss how digital procurement can help your business specifically, reach out to the experts at Portt. We’re happy to chat with you about the unique solutions and positive outcomes that our digital procurement system can provide for your organisation.