Originally Published on: SpendEdge |Revolutionizing Procurement – Technological Trends in the 21st Century for Cost Savings in Procurement
In the relentless pursuit of heightened efficiency and elevated customer experiences, organizations of all sizes are actively integrating technology into their procurement functions to usher in business transformation. The shaping influences on the procurement landscape are the Internet-based delivery of computing resources ("cloud computing") and process enablement, including low or no-code workflow automations. Remaining in a "wait and watch" mode is not an option for organizations seeking success. In the days ahead, the ability of procurement organizations to internalize near-to-mid-term procurement technology trends will determine their position as leaders, followers, laggards, or losers in the sourcing domain. Let's delve into some major procurement technology advances that organizations should not overlook in 2023.
Migrate Procurement to the Cloud: Unlocking Long-term Cost Efficiency
Cost containment is paramount for any procurement organization. Cloud-hosted servers and software-as-a-service (SaaS) applications are gaining popularity, offering clear advantages over traditional on-premises solutions. The consumption-based pricing model of cloud-based systems, coupled with the elimination of capital expenditures, results in lower user costs. Beyond cost savings, cloud technologies allow procurement organizations to focus on core cost-reduction activities by offloading information technology responsibilities to external managed service providers. Cloud-based solutions facilitate accessibility for diverse work environments, support big data analysis for better cost predictions, and contribute to reducing carbon footprints.
Take Control of Business Platform Customization: Empowering Business Users
A development related to cloud computing is empowering business users to customize their platforms without extensive coding. Utilizing application programming interfaces (APIs) and microservices, business users can now build and tailor business platforms to their specific needs, fostering a more user-centric approach to platform automation.
Nothing Like Too Much Process Automation: Driving All-round Procurement Efficiency
Digital enablement of procurement functions is crucial for driving operational efficiencies. Technologies such as AI, ML, and IoT are opening new possibilities, including chatbots, smart contracts, and remote supply chain management. Process automation is an ongoing journey, offering procurement organizations the opportunity to achieve data accuracy, transaction speed, cost controls, and risk mitigation in the ever-evolving business landscape.
How SpendEdge Facilitates Procurement Savings: A Comprehensive Approach
1. Flush Out Process Inefficiencies: SpendEdge experts analyze procurement processes, identify redundancies and inefficiencies, and implement relevant technology solutions to enhance decision-making and efficiency.
2. Identify and Address Procurement Risks: Backed by two decades of experience, SpendEdge assists procurement teams in identifying and minimizing financial, operational, supply, and compliance risks, providing data-based decisions for security and compliance.
3. Advisory on Sourcing Platform Implementations: SpendEdge guides businesses through key aspects of online sourcing platforms, including software costs, customization, training, integration, security, and ongoing maintenance, making sourcing automation and technology adoption seamless.
4. Choose the Right Supplier: SpendEdge meticulously evaluates procurement technology capabilities, pricing, and customer satisfaction of multiple suppliers, helping clients make informed decisions in a competitive market.
Success Story: A Strategic Move to Cloud Services with SpendEdge
SpendEdge assisted a listed US insurer facing cost overruns due to outdated on-premises IT infrastructure. By conducting a comprehensive analysis of global public cloud service providers (CSPs), SpendEdge helped the client select the best-fit CSP based on crucial parameters like instance pricing, payment terms, and discount structures. The client's strategic move to the cloud is now paying dividends, enhancing efficiency and reducing procurement spend.
In conclusion, staying abreast of evolving procurement technologies is imperative for organizations aiming to thrive in the dynamic business landscape. Embracing cloud solutions, empowering business users, and prioritizing process automation are essential steps towards achieving all-round procurement efficiency and cost savings.
