Top 10 eProcurement and fulfilment strategies
In the face of disruptive environments, adaptive technologies and processes come to the fore in the procurement arms race.
In this system, as the environment becomes evermore perilous, the well-adjusted survive while the maladapted perish; and a kind of technological selection determines which species of procurement remain.
Just as the organism develops tools in the natural environment, procurement has its tools in the business environment; tools akin to increased speed, enhanced agility, greater intelligence, keener vision and the like.
Two important tools in the procurement arms race are eProcurement and fulfilment strategies.
eProcurement
eProcurement includes any procurement activity conducted via digital or electronic networking systems, like eData interchange or enterprise resource planning.
Fulfilment strategies
Fulfilment strategies comprise the approach to predicting the relationship between the receiving of orders from customers, their processing and delivery, they can include everything from sourcing, receiving, storage, processing and shipping, and in this way represent an end-to-end process across the entire supply chain.
The strategies between just-in-case and traditional just-in-time procurement methodologies are examples of the importance of fulfilment, and are liable to make or break a company and test the instincts and wits of the procurement teams involved.
Both eProcurement and fulfilment strategies aim to improve efficiencies and effectiveness, and both use digital technologies to streamline their processes and are fundamentally critical to the procurement.
Here are the top 10 eProcurement and fulfilment strategies:
10. Strategic Sourcing
Strategic sourcing is the process of identifying and selecting suppliers that offer the best value for your organisation.
This involves analysing supplier performance, market trends and supplier capabilities to make informed procurement decisions.
After several disruptions in the supply chain, the importance of strategic sourcing became extremely apparent, as procurement professionals the world-over rushed to thwart the uncertainties and price fluctuations by implementing strategic sourcing at a level never seen before.
The significance of strategic soucing for procurement can no longer be overlooked.
9. Multi-channel fulfilment
Multi-channel fulfilment is a procurement and supply chain management strategy that allows businesses to procure or sell their products through multiple channels (such as online marketplaces or brick-and-mortar stores) and fulfil orders from a centralised inventory management system.
It involves the coordination of various channels and distribution centers to fulfil orders quickly and efficiently. With the rise of eCommerce, customers and businesses expect a seamless omnichannel experience, and so companies should aim to provide a variety of fulfilment options, including in-store pickup, same-day delivery and third-party logistics.
eProcurement and fulfilment strategies are closely tied to multi-channel fulfilment because they rely on the same core principles of inventory management and logistics. eProcurement involves the use of electronic platforms to purchase goods and services, while fulfilment strategies involve the delivery of those goods and services to customers.
8. Agile supply chain
Agile supply chain is a business strategy that emphasises flexibility and responsiveness in the face of changing customer demands, market conditions, and other factors that impact the supply chain including, of course, major disruptions.
It is a modern approach to supply chain management that seeks to minimise risk while maximising value by optimising the flow of goods and services from suppliers to customers. The ability to quickly adapt to changing market conditions and customer demands is crucial in eProcurement and fulfilment.
Companies should aim to build an agile supply chain that can quickly pivot to new opportunities or challenges.
7. Sustainable Procurement
Sustainable procurement involves considering the social, environmental, and economic impacts of procurement decisions.
Implementing sustainable procurement practices can help you reduce costs in the long run, enhance brand reputation, reduce environmental impact and support social and economic development.
By choosing suppliers who prioritise sustainability and ethical practices, and by taking into account the full lifecycle of products and services, organisations can make more informed procurement decisions that benefit not only their bottom line but also the planet and society as a whole.
6. Automated inventory management
Manual inventory management can be time-consuming and prone to errors. By using automated inventory management systems, companies can ensure accurate and timely tracking of inventory levels, reorder points, and lead times.
Automated inventory management is the process of using technology and software to track and manage inventory levels, sales, and shipments automatically.
It involves the use of automated systems such as barcode scanners, RFID (Radio Frequency Identification) tags, and software applications to manage inventory in real-time.
Automated inventory management systems help businesses to streamline their inventory management processes by providing accurate and up-to-date information for eProcurement and fulfilment strategies.
These systems can help businesses to reduce costs by preventing overstocking and stockouts, minimise waste, and optimise supply chain operations.
5. Data-driven decision-making
Data-driven decision-making can be particularly useful for eProcurement and fulfilment strategies, as it allows companies to make more informed and objective decisions about how to manage their supply chain operations.
By leveraging data from various sources, including sales, inventory and supplier performance, companies can make informed decisions about procurement and fulfilment. This helps them optimise their operations and stay ahead of the competition.
Data-driven decision-making is a valuable tool for companies looking to optimise their eProcurement and fulfilment strategies. By leveraging data and analytics, companies can make better decisions about how to manage their supply chain operations, improve customer experiences, and drive business success.
4. Automation
Automating procurement and fulfilment processes can improve efficiency, reduce errors and increase productivity.
Consider implementing automation technologies such as robotic process automation (RPA) and artificial intelligence (AI) to streamline your processes, because the truth is, more and more of your competitors are doing so.
The industrial revolution led to an explosion in economic growth for this very reason - that automaiton will supercharge your processes, freeing up valuable time to work on other aspects of your business, and boosting efficiency to new heights.
3. Risk Management
Risk management is a critical strategy in eProcurement and fulfilment as it helps organisations identify potential risks and take action to mitigate them before they have a negative impact on their operations, reputation and bottom line.
By implementing effective risk management strategies, organisations can ensure a secure and reliable supply chain, minimise the risk of delays or disruptions, and ensure that products and services are delivered on time and within budget.
In addition, risk management helps organisations stay compliant with regulatory requirements and industry standards, reducing the risk of legal and reputational consequences. This is particularly important in industries that are subject to stringent regulations, such as healthcare, finance, and government, but is becoming increasingly important to all industry.
2. Supplier Collaboration
Building strong relationships with suppliers is key to successful eProcurement and fulfilment. Encourage collaboration and communication with your suppliers to ensure that they understand your needs and can deliver on them.
Supplier collaboration has been in the spotlight in procurement and supply chain circles for a while now, catalysed by disruptions and understood to be crucial.
Supplier collaboration is about fiorginf lasting relationships and can make or break your business and procurement processes, so look to collaborate to stay ahead of the curve.
1. Proactive demand forecasting
Proactive demand forecasting is the practice of using data analysis and statistical modeling techniques to predict future demand for a product or service.
One of the main advantages of proactive demand forecasting is that it allows companies to take a more strategic approach to procurement and fulfilment.
By accurately predicting demand, companies can adjust their inventory levels, production schedules and distribution channels to ensure that they have the right products available at the right time. This can help them avoid stockouts, reduce lead times, and improve customer satisfaction.
Proactive demand forecasting can also help companies optimise their pricing strategies. By understanding how demand is likely to change in response to changes in price, companies can set prices that maximise revenue and profitability.
