February 12, 2024

How Procurement Digitization Enhances Strategic Decision-Making

How Procurement Digitization Enhances Strategic Decision-Making

According to a McKinsey report, nearly 81% [1] of company heads believe the old way of handling essential company purchases needs to be updated. As per a PWC survey, even 86% [2] of the top leaders agree technology is the key to bringing the supply chain to order. In this regard, procurement digitization is the most important step in having a supply chain that is connected, smart, and works well. 

4 Benefits of Digital Procurement  

Automated Workflows

About 69% [3] of boring tasks that have to do with managing things will be done by computers automatically. Technology has changed how businesses buy stuff. It makes jobs that used to be done by hand happen automatically and lets people see how money is being spent immediately. Using software to buy things is also trending. This software works well with big computer systems like SAP and Oracle to pull out information about orders, bills, and payments. You can eliminate the need to enter data by hand to save time. It also makes things more accurate and costs less to process.

Access to Real-time Analytics 

Around 60% [4] of companies worldwide use instant data analysis to help make business choices. They have special dashboards powered by business intelligence tools that show important information about buying things, like how much money is being managed, how much is saved, how well the process works, and how good the suppliers are. Strong analysis of past purchases also helps you make decisions based on data. You can quickly decide where to get things and contracts for the best value. These days, businesses also use machine learning (a smart computer program) to analyze. These machine-learning programs can spot early signs of unusual spending and risks. This way, you can avoid big mistakes easily.

Streamlined Procurement 

A report from Deloitte says that nearly 83% [5] of the people in charge of buying things for companies are using digital ways to make buying easier. E-procurement platforms, which are online systems for buying, bring everything together in one place. They make buying simpler and the same across different parts of the business, and they use special steps to ensure everything is done right and follows the rules. Suppliers and sellers connect to these systems for an easy way to handle orders, bills, and payments all on one platform.

Improved Cycle Time

About 83% [6] of the leaders who handle technology in companies use automation to speed up their processes. This helps in getting rid of paper records to make things faster. New technologies have also changed the way companies buy things. It is now adding values. Companies are also saving money by spending only as per demand using data from technology.

Digitizing the Procurement Function

Digital Category and Service Procurement

Think about seeing and controlling how money is spent in your business using a computer or online tools. This would help you make smart decisions quickly. Digital buying, especially for software, computers, and new types of services, focuses on these new areas. For example, using a safe computer program or app, you can keep digital records of all your buying activities and deals. You can use software like Procurify, Coupa, and SAP Ariba to help you with this.

Innovative Procurement Data Utilization

Almost 80% [7] of companies think their data could be organized better. That’s why big data analytics (analyzing lots of data), predictive modeling (predicting future trends), and AI (Artificial Intelligence) are becoming popular. They help companies make really smart decisions based on lots of data. When companies look closely at a huge amount of data about how much they spend, they get many useful ideas. They can accurately predict future prices, risks in getting supplies, and new market trends. That’s why companies are moving towards using predictive intelligence, which means guessing what will happen in the future based on data. They do this to make plans to avoid problems easily and in advance.

End Thoughts

Procurement digitization can offer significant cost and time benefits. However, companies should be willing to transparently upgrade their digital skills and talents to adopt this new digital culture. At Moglix Solutions, we provide innovative solutions for procurement digitization. Discover how we helped India’s leading tractor manufacturer reimagine the user journey with a seamless digital procurement experience. As a result, the manufacturer saved 85% of staff hours on procurement. To learn more about how we help with the procurement process for procurement transformation, contact Moglix Business today!