A shift from manual paper-based procurement to e-procurement has worked wonders as process automation has led to substantial gains for businesses such as increased profit margins, greater productivity, higher transaction transparency & accountability, and greater cost-effectiveness throughout procurement and supply chain process.
In recent times there has been increasing use of advanced technologies which point toward a new trend in procurement:
Apart from saving on costs, digital technology has eliminated the time-consuming process of monotonous manual labor and paperwork in the procurement process. As the world has witnessed, automation frees up resources that can be deployed for other productive work which is beneficial to the business.
- Cloud Computing
In today’s day and age where most decisions taken are driven by data, cloud computing has become the need of the hour. Cloud technology has enabled the decentralization of procurement which makes it easy to scale up and integrate with other functions of business such as accounting, stores, sales, etc.
- Cyber security
Any digital transformation is incomplete without today without providing for a robust cyber security system in place. With the reliance on technology, there is an increased need to protect procurement systems from malware, corruption, tampering, and destruction. Procurement as a function is very price sensitive and it is critical that procurement related is protected and there is privacy around it.
The last 2 years have seen an increase in curiosity and adoption of blockchain technology not limited only to payments or related use cases but procurement too. With this technology, an increase in speed of execution and security can be achieved. In the coming years, blockchain will transform from being a novelty to a necessity.
Benefits of the latest technology in a business’s growth
- Better analysis of spending and cost optimization
Efficient procurement software allows companies to better track and structure their spending as all the information is collated and can be viewed at one location. Apart from reducing expenses, a customized dashboard displaying spend analysis and details makes it easier for companies to optimize their costs. Vendor performance can also be tracked using certain KPIs to make the best procurement decisions.
- Mobile-Friendly Technology
With the kind of smartphone and mobile internet penetration that India has achieved in the last 6 years, making procurement decisions has become extremely convenient and easy enabling procurement executives to access to procurement data on their phones. We are witnessing an increasing number of businesses putting resources in mobile technology.
- Better supply chain management
Due to efficient procurement solutions, companies can procure or source goods from any corner of the globe. Online procurement solutions give companies access to suppliers anywhere thereby increasing the number of vendors to choose from increasing competition which results in realizing better costs and quality.
- Simplified Process
With cloud technology, electronic data storage reduces the time-consuming manual process of procurement. With templates being reused turnaround times are substantially reduced. There is also a significant reduction in human error as things like compliance & regulatory checks can be carried out in software as contracts and orders are present in the system/cloud. Internal activities such as vendor appraisal, tracking of P.O and delivery can be automated due to e-procurement.