{"id":16184,"date":"2023-01-15T16:05:47","date_gmt":"2023-01-15T13:05:47","guid":{"rendered":"https:\/\/k-house.in.ua\/?p=16184"},"modified":"2023-01-27T20:57:05","modified_gmt":"2023-01-27T17:57:05","slug":"how-to-navigate-digitalisation-in-procurement","status":"publish","type":"post","link":"https:\/\/k-house.in.ua\/en\/how-to-navigate-digitalisation-in-procurement\/","title":{"rendered":"How to navigate digitalisation in procurement"},"content":{"rendered":"

The digitalising of procurement in 2023 \u2013 vital, growing and confusing<\/span><\/h2>\n<\/div><\/div>

Peter Smith, CIPS<\/a> past president and consultant has shared his vision on how the procurement digitalization should be navigated in the company today.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Executing procurement tasks proved well-nigh impossible without technology to allow remote and physically dispersed accessing and sharing of data, collaboration with colleagues and suppliers, and management of complex processes such as sourcing exercises.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

If we analysed every word written about procurement in 2022, \u201cdigital\u201d and \u201cdigitisation\u201d might well come top of the frequency charts, vying perhaps with \u201csustainability\u201d and \u201ccrisis\u201d.\u00a0<\/span><\/p>\n<\/div><\/div>

That\u2019s not surprising. Digitisation simply means using digital technology, and automation to improve procurement processes and performance.<\/strong> Clearly, procurement cannot succeed without that, and the Covid lockdowns & war in Ukraine merely accelerated already strong trends, as organisations had to adapt to home working.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

But procurement now faces new digitisation challenges. Organisations and internal stakeholders expect procurement to embrace the best technology, and the cry, \u201cwhy isn\u2019t it as easy for me to buy stuff at work as it is at home\u201d is regularly heard.<\/p>\n<\/div><\/div>

Another challenge is the extraordinary expansion of digital procurement tools over the last five years. Literally hundreds of new firms have sprung up, supplying products that address every conceivable aspect of the procurement and supply chain universe. Sometimes it is difficult to even understand the offering \u2013 how about \u201ca predictive procurement orchestration platform that amplifies the impact of procurement\u2019s influence\u201d?<\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

No, me neither. And it took a good ten minutes of digging around that firm\u2019s website to get some idea of their actual use-case and possible benefits. That experience is not unusual today.<\/p>\n<\/div><\/div>

As we move into 2023, procurement digitisation \u2013 executed well\u00a0\u2013 will create competitive advantage, and even to just keep pace, organisations will need to invest and implement the right tools and processes.<\/strong> However, the options will continue to appear complex. The programme of CIPS helps the students, experienced in procurement, to deepen the knowledge and to develop the procurement processes based on the best worldwide practices and cases. Explore the CIPS programme ><\/a><\/p>\n<\/div><\/div>

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How to navigate digitalisation:<\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

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1. Don’t expect one platform to do everything\u00a0<\/strong><\/span><\/h3>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

The old argument about single platform or \u201cbest of breed\u201d procurement tech has been won by the latter option. No-one really thinks today that a single mega-platform can do everything, when there are so many effective products addressing disparate but genuine needs. You might still use a multi-functional product to underpin the core source-to-pay process for example, but don\u2019t limit your thinking and miss additional options that might generate value.<\/p>\n<\/div><\/div>

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