Like several other functions, digital technologies are also enabling procurement. Technologies such as blockchain and the improved performance of computing power have led to cost reduction. Tracking real-time business intelligence on the movement of goods has become so much easier and more effective. In spite of these promises though, several companies are not taking full advantage of its capabilities. Their processes re still stuck in the analog past without a clear understanding of how to use the enormous data now on available. Instead they can easily aim at increasing productivity at the rate of 30-50%. Processes have been increasingly automated. Collaboration is also much easier. This digital procurement tech landscape mentioned includes the systems and data backbone of ERP (Enterprise Resource Planning) and PLM (Product Lifecycle Management). There are also specific procurement suites, applications and portals. They make use of AI, Big Data and the resultant advanced analytics. Beyond the tech, leaders must focus on crating true business value. This will focus multi-pronged on savings, quality, innovation, speed of execution and risk management. The necessary procurement roles and capabilities need to be in place. Digital is now a strategic weapon, so leaders need to plunge headlong into it. Workforce shifts need to be anticipated before they occur so a digital support team needs to be put in place. Constant experimentation and a search for opportunities must continue side-by-side.

Source:https://www.bcg.com/en-us/publications/2018/delivering-digital-procurement-promise.aspx?linkId=53392526&redir=true

Uploaded Date:16 August 2018