Realizing the value of E- procurement

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We have witnessed how the Coronavirus pandemic has wreaked havoc on businesses by disrupting major supply chains which have led to scores of problems for businesses by upsetting the supply-demand balance resulting in deliveries getting delayed, and improper inventories which eventually results in rising in prices 

Procurement is a hands-on function and probably the most underrated and the most important when seen in the Indian context. No longer can organizations treat procurement as a secondary function and we have seen companies being proactive to revamp their supply chains. Here are a few changes we noticed in procurement

  1. Discovering new suppliers – Companies have diversified to multiple suppliers and are no longer depending on just a couple of suppliers thereby reducing their supply chain disruption risk. Also, they are cautious in choosing suppliers and are carrying out due diligence and assessing their credibility and financial health
  • Inventory management – It was common for companies to be out of stock when it came to critical supplies due to disruption of supplies. Companies since then have chalked out strategies to ensure they maintain a balanced inventory by having a robust system of timely requisition and swift delivery
  • The shift in customer preferences – It is vital for companies to understand and anticipate the changing preferences of customers which can affect procurement so that procurement can be upgraded accordingly. It could lead to change in suppliers which could be as a result of quality issues or delivery issues
  • Being Proactive – The disruption in the supply chain due to the pandemic has been a boon as it has resulted in companies being proactive and future-ready and better prepared in case of unforeseen lockdowns. Also, technological advancements and analytics have enabled companies to improve their procurement
  • Improving supplier/vendor relationship – Suppliers are an important stakeholder in today’s world to help companies conduct their businesses in the post covid scenario. This scenario has also made companies realize the importance of building valuable supplier relationships and taking every along to get through difficult times. Long-term contracts aren’t just procedural anymore but have a far-reaching impact in defining supplier relationship

How can Technology aid procurement as a function?

Technology has revolutionized the way companies function and procurement has been directly impacted too. Accessing data such as spend and expense analytics in real-time has enabled companies to better analyze their spending and cut down on unnecessary spending and also given companies insights to be better prepared

Insights on data such as real-time tracking have greatly enhanced the efficiency of the procurement function. Procurement software these days are equipped with analytic tools and solutions which help companies gauge market response and help them make timely procurement and avert any crisis which could result due to fluctuating demand and pricing

Conclusion While the covid 19 induced pandemic was an aberration, it has only strengthened procurement and made companies realize its importance. It has led to companies being more proactive and allowing them to switch to E-procurement seamlessly. With analytics, category management , access to diverse suppliers, and other features Pakka business is revolutionizing how companies operate and streamline their processes

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