Top 10 ProcureTech Strategies
1. Automation
Automating manual processes such as purchase orders, invoicing and payments can greatly increase efficiency and reduce errors - and has been shown to greatly increase revenue and minimise waste.
By automating these tasks, organisations can save time and resources, reduce the potential for errors and improve visibility into the procurement process.
Automation can also help to standardise processes and improve data accuracy, which can be beneficial for reporting and compliance.
2. e-Sourcing
Utilising online platforms to conduct RFPs, RFQs and auctions can save time and resources while also increasing visibility into supplier capabilities.
e-Sourcing allows organisations to easily manage and track supplier responses and evaluate suppliers' capabilities and pricing in a more efficient and transparent way.
On top of this, e-Sourcing can help to improve supplier collaboration, increase competition and reduce the time and cost associated with the sourcing process.
3. Compliance and Risk Management
Utilising technology to track compliance and manage risks, such as with anti-bribery and anti-corruption regulations, can help to protect the organisation's reputation.
By using technology to track compliance, organisations can ensure that they are following all relevant laws and regulations, which can help to protect their reputation and reduce the risk of legal and financial penalties.
Compliance and Risk Management technology can also be used to manage and mitigate risks which can help to further protect the organisation's assets and help to propel it into the modern world of triple-bottom-lines.
4. Artificial Intelligence
Utilising AI-based tools can help to optimise processes, analyse data on an incredible scale and and make important predictions.
AI-based tools can be used to automate tasks, such as invoice processing and also improve the accuracy and speed of data analysis.
In addition, AI can be used to make predictions, such as forecasting demand or identifying potential risks, which can help organisations to make better financial decisions as well as improve their resilience.
5. Spend Analysis
Analysing spend data can uncover areas for cost savings, identify potential risks and inform strategic sourcing decisions.
By analysing spend data, organisations can identify areas where they are overspending, as well as areas where they may be able to negotiate better deals with suppliers.
This information can also be used to identify potential risks, such as supplier dependency and inform strategic sourcing decisions.
6. Supplier Management
Utilising technology to manage supplier information, performance and risk can improve supplier relationships and reduce the impact of supply chain disruptions.
By using technology to manage suppliers, organisations can improve the accuracy and completeness of supplier information, monitor supplier performance and identify and mitigate risks in the supply chain.
Supplier management is also able to provide insight into which potential suppliers are abiding by ESG and D&I considerations, with major implications for compliance.
7. Supply Chain Visibility
Utilising technology to track goods and materials as they move through the supply chain can improve delivery times and reduce the risk of stockouts.
By using technology to track goods and materials, organisations can improve delivery times and allow for greater prediction into ongoing activities in the supply chain.
This can also help organisations to identify potential bottlenecks and inefficiencies in the supply chain and take action to address them.
8. Blockchain
Blockchain technology can improve supply chain transparency, track products and materials and secure transactions.
By using blockchain technology, organisations can improve supply chain transparency, increase security and trust in transactions while also reducing the risk of fraud.
Additionally, blockchain can be used to track products and materials as they move through the supply chain.
This technology is set to have a revolutionary impact on procurement, with an impenetrable environment of data, and an exclusivity of transactional information which is akin to digital DNA. Block chain technology is set to transform procurement as we know it.
9. Digital Catalogues
Providing digital catalogues can improve the speed and accuracy of ordering while also reducing paper waste.
By using digital catalogues, organisations can easily access and search for products, reducing the time and effort needed to place orders.
Digital catalogues can also help to reduce paper waste and improve the accuracy of orders - opening up data to digital analysis and AI and ML.
10. Mobile Procurement
Enabling employees to make purchases and approve invoices using mobile devices can increase efficiency and reduce the time needed to complete transactions.
By using mobile devices for procurement, employees can place orders and approve invoices while on the go, increasing efficiency and reducing the time needed to complete transactions.
This can also help to improve the accuracy of orders, reduce the need for paper-based records (further digitisation) and increase the speed of approvals.
