Reach Next Level Procurement through Digital Value
Reach Next Level Procurement through Digital Value
Blog title: Reach Next Level Procurement through Digital Value
If you missed out on our webinar featuring The Hackett Group, read on for highlights and a link to view the on-demand version.
Amy Fong with The Hackett Group has more than 20 years’ experience and insight into procurement, supply chain, and organisational effectiveness. She has expertise on topics like:
The role of digital transformation in procurement,
How to measure digital value in the workplace, and
How procurement can prepare for a digital future.
In our recent webinar, she shared some of that expertise with us, speaking on how to drive value in procurement through digital transformation. I’ve re-capped the highlights for you below.
The state of digital procurement today
95% of procurement organisations agree that digital transformation will change the way procurement services are delivered, but only 66% actually have a strategy for getting there. Moreover, only 46% report being ready to execute their digital strategies.
Your First Step…Process Automation
Business expectations regarding digital have heightened in recent years. Because of this, procurement groups may currently feel ill-prepared to tackle this quickly developing objective. The value of digital integration in procurement organisations is undeniable as it has the strength to create an impact on every level. To integrate digital value successfully, it’s best to already have a solid level of automation across the board. Spend analysis, e-sourcing, contract lifecycle management,e-procurement, service procurement, and e-invoicing all should and can be automated. Once automation is established, the benefits of digital value are realised.
Organisations with high levels of process automation establish:
66% higher overall savings
26% fewer clerical staff
84% higher likelihood of considering their data accurate and reliable
56% higher likelihood of being viewed as a valued business partner
Three E’s of Digital Value
Digital technologies function as an enabler by changing the way procurement services are delivered. Digital value improves customer experiences and operational efficiency while encouraging agility and business ideals. Digital transformation impacts three vital parts of procurement operation: efficiency, effectiveness, and experience.
1. Digital Efficiency
Efficiency remains a top focus area and leading concern in procurement organisations. You can see a direct impact on efficiency through things such as increased mobility and robotic process automation (RPA). Mobile options allow for faster approval points and an easier overall shopping experience for the customer. RPA reduces manual process steps and improves cycle time.
2. Digital Effectiveness
The effectiveness of processes is often a concern when transitioning from a traditional workforce structure to a digitally-centric one. Through advanced analytics, data tools, and predictive modeling, an organisation can feel confident in their transformational journey to digital. Advanced analytics and data tools make it easier to mitigate risks and provide better insights that enhance the process of savings reconciliation. Predictive modeling creates a stronger approach for mining valuable insights from the financial supply chain.
User-experience and customer relationships are central to the success of procurement organisations. Digital transformation creates new ways for customers to request their needs in a way that’s natural to them. Omnichannel design and individualisation gives users intuitive and adaptive tools to meet their highly specific needs. Journey mapping and segmentation allow you to tailor the relationships based on internal and external customer needs.
Your Digital Blueprints
Step 1: The Foundation
Implementing a digital transformation in your workplace requires a basis in the form of data and established analytics. Only from there can you safely build your four pillars that will support digital strategy.
Pillar 1: Presenting an omnichannel and personalised stakeholder experience means having higher tech concierge services available to those who need it. This personalisation also comes in the form of maintaining positive relationships in order to better work together and execute steps in your transformational journey
Pillar 2: The second important pillar is to give your workforce the tools they need to successfully implement digital transformation. This sort of change is a cultural shift in how an organisation works and communicates. Make it easy for your team to buy-in and commit to digital progression.
Pillar 3: Your procurement organisation should aim for smart orchestration of source-to-pay services. This means decide what you’re going to offer to your customers.
Pillar 4: This piece of the puzzle can make or break the system. Networked solutions connect buyers, suppliers, and other partners involved. Connectivity is key in making any digital process possible.
Are You Ready?
Emerging technologies and the increase in data require procurement organisations to look to the future. It’s imperative to change the way we handle data as it expands and grows. Those adopting digital will have a competitive edge through the skills they gain in the process. Data analysis, business acumen, innovation, relationship management, and agility are just a few to start. Pairing these skills with the support of stakeholders, education of the organisation, and a willingness to continuously rework methods create a procurement workforce ready to continue its digital journey.
To hear the full discussion, watch the on-demand webinar.
We Can Help
Ready to see how your procurement organisation can reach its digital goals? Basware’s team of business consultants have helped organisations transform for years. We’ll help you establish digital priorities and tailor an individualised plan through our 360-degree assessment. Reach out to Basware.