Top 10 Procurement Technologies
As technology continues to develop at a rapid pace, the ingenuity of utilising the best and brightest tech in the procurement world is changing the function forever.
From strategic sourcing software to spend analysis, once analogue, paper-ridden processes are now supercharged through digitisation.
Here are the top 10 disruptive technologies in procurement at the moment.
1: eProcurement platforms
eProcurement platforms are the ultimate shopping assistants for businesses, providing seamless and effortless purchasing experiences. They offer a one-stop-shop solution that simplifies the entire procurement process, from browsing through electronic catalogues to managing suppliers.
With the ability to purchase everything from raw materials to office supplies and capital equipment, these platforms can help businesses save valuable time and money. By reducing errors, increasing visibility and promoting collaboration between buyers and suppliers, eProcurement platforms create a more efficient and productive environment.
What's more, these digital environments enable businesses to negotiate better deals with suppliers, allowing them to leverage substantial cost savings. With electronic catalogues, purchase order creation, invoice processing and supplier management all in one place, eProcurement platforms are the perfect solution for businesses looking to streamline their procurement process. In the modern business world, any procurement organisation without an eProcurement solution, is living in the past.
Top companies:
SAP Ariba, Coupa, Procurify, Tradeshift, JAGGAER, Basware, Zycus, Ivalua, Determine, BravoSolution
2: Spend analysis tools
Imagine having a crystal ball that gives businesses a peek into their spending habits and illuminates areas where cost savings can be achieved. Spend analysis tools are precisely that. They empower businesses to gain a comprehensive understanding of their spending by importing and analysing data from multiple sources, including purchase orders and invoices.
These tools come equipped with several useful features that allow businesses to visualise their spending patterns, identify categories and suppliers that consume the most resources, and even compare their spending with industry benchmarks or similar companies.
By leveraging data visualisation, businesses can quickly identify patterns and trends within their spending data. Category and supplier analysis provide insight into how much a company is spending on specific goods and services and which suppliers are driving those expenditures. This knowledge helps businesses identify areas of overspending and locate opportunities for cost savings.
Spend analysis tools also include advanced reporting, enabling businesses to generate detailed reports and export data to other systems for further analysis. With these features, businesses can make informed decisions about their spending habits, leading to significant cost savings and a healthier bottom line.
Top companies:
GEP SMART, Sievo, SAP Ariba, Coupa, Zycus, D&B, Rosslyn, BravoSolution, Proactis, JAGGAER
3: Supplier management software
Supplier management software is a powerful tool that enables businesses to effectively manage their supplier relationships. With the ability to automate and streamline supplier management processes, businesses can improve supplier performance, reduce costs, and mitigate risks.
This software allows businesses to make informed decisions about their suppliers, leading to improved efficiency and enhanced supplier relationships. Popular examples of supplier management software include SAP Ariba Supplier Lifecycle and Performance, Coupa Supplier Management, and Ivalua Supplier Management.
Top companies and their SM software:
SAP Ariba, Coupa, GEP SMART, Zycus, Aravo, JAGGAER, Ivalua, HICX, Determine, Hiperos
4: Strategic sourcing software
Strategic sourcing software is a suite of procurement solutions that work together to support upstream procurement processes. This software is typically used by businesses to achieve the necessary critical mass of spend.
To qualify, strategic sourcing software must be capable of storing structured data, offering side-by-side comparisons of sourced products and enabling internal data collaboration, improve procurement efficiencies and make informed sourcing decisions that lead to cost savings and better supplier relationships.
Top Strategic sourcing software:
Ivalua, Keelvar, Proactis, Basware, Workday, JAGGAER, BravoSolution, SAP Ariba, Coupa, Zycus Strategic Sourcing, GEP,
5: Electronic auction and reverse auction platforms
Electronic auctions, or eAuctions, enable potential suppliers to compete in real-time for prices of goods or services under auction. These systems allow for commercial competition while also forcing prices to stay low, adding benefits to procurement and the economy. Reverse eAuctions take this further, with competitors starting at their ideal price and gradually lowering it as they vie for business. This method can lead to significant cost savings and enhanced supplier relationships.
Top companies
Oracle, Zycus, Coupa, BravoSolution, Ivalua, Proactis, Ariba, SAP Fieldglass, GEP, JAGGAER
6: Contract Management Software (CMS)
Contract management software (CMS) is the legal guardian for procurement teams, protecting them from the complexities of agreement-making that can have legal ramifications. CMS automates the entire contractual process, from renewals to workflows, eliminating the need for manual labour.
In the past, businesses had to juggle between multiple tools to manage their contracts, but now with CMS, everything is integrated into a single platform. This streamlines contract management, leading to enhanced supplier relationships, cost savings and increasingly, the inclusion of ESG, and D&I provisions.
Top companies:
Icertis, Coupa, Agiloft, Apttus, Concord, ContractWorks, SAP Ariba, Ironclad, SpringCM, Trackado
Supply Chain Management (SCM) software
Supply chain management (SCM) software is like a bird's eye view of the intricate movements of products or services as they journey through supply chains. The more sophisticated the software, the closer to real-time tracking it can provide.
SCM software is a multitasking powerhouse, managing inventory tracking, vendor management, fleet management, logistics, and analytics. The more data and tech that flows into these systems, the clearer the vision of the entire supply chain, empowering businesses to achieve greater efficiency, reduce costs, and make informed decisions.
Top companies:
IBM, Microsoft, JDA Software, Kinaxis, Infor, SAP, Oracle, BluJay, LLamasoft
8: Procure-to-pay software
Procure-to-pay (P2P) software may sound banal, but they are powerful tools that streamline the purchasing process and accounts payable systems, effectively merging the flows of once-separate departments. The measurable impact of implementing P2P software solutions has caused them to soar in popularity. With integrated solutions that can track the in-and-out flow of entire procurement processes and provide information up to the final payment, P2P solutions have revolutionised procurement, and are now regarded as essential for boosting productivity and efficiency in today’s business world.
GEP Worldwide, Proactis Holdings, BirchStreet, SAP Ariba, Coupa, Basware, Oracle, JAGGAER, Zycus,Tradeshift
9: Procurement performance analytics
Procurement performance analytics is a compass for businesses navigating the procurement landscape. By collecting and analysing procurement data, organisations can gain valuable insights that lead to informed decision-making and better performance. This process empowers businesses to identify areas for improvement and track progress toward key performance metrics. With procurement performance analytics, companies are able to make data-driven decisions and confidently steer their procurement operations toward greater success..
Top companies:
Procurify, Zycus, Coupa, GEP SMART, SAP Ariba, Oracle, JAGGAER, Ivalua
10: Integrated e-sourcing and e-contracting tools
Technology is a catalyst that facilitates progress and innovation in various industries including procurement, and e-sourcing and e-contracting have replaced traditional analogue methods. The digital nature of these technologies enables more effective and efficient tracking and management of procurement data, which results in time and cost savings for businesses. Additionally, these technologies have led to improvements in other areas, such as security and compliance, which are essential in modern procurement practices. As procurement becomes increasingly reliant on data and technology, integrating these tools will continue to be a game-changer for the entire industry.
Top companies:
Synertrade, IBM, Scanmarket, SmartSource, Ivalua Spend HQ, Workday, SAP, Coupa, Sievo
The rapid development of technology is revolutionising the procurement function.
The adoption of disruptive technologies in procurement, such as eProcurement platforms, spend analysis tools, supplier management software, strategic sourcing software, electronic auction platforms, contract management software, supply chain management software, procure-to-pay software, procurement performance analytics, and integrated e-sourcing and e-contracting tools, is transforming traditional, paper-based processes into streamlined, digitised, and efficient workflows.
These technologies offer numerous benefits, including simplifying the procurement process, reducing errors, increasing visibility, promoting collaboration between buyers and suppliers, negotiating better deals, gaining insights into spending patterns, identifying cost-saving opportunities, improving supplier relationships, automating contract management, optimising supply chain operations, merging purchasing and accounts payable systems, tracking procurement performance, and enabling effective data management and compliance.
Businesses that embrace these disruptive technologies gain a competitive edge by saving time, reducing costs, enhancing productivity, and making data-driven decisions. With the continuous advancements in technology, integrating these tools into procurement practices will remain crucial for achieving success in the modern business world.
