The Future of Procurement is Digital

  • Published on: 28 May 2020
  • By: Sam Walker

As is the case with virtually all organisations, the future of procurement is digital and with advances in technology, organisations are able to save time and be more efficient throughout the supply chain. Procurement software and platforms will, for many small to medium enterprises (SMEs), or financially struggling Public Sector bodies, be the difference between sinking or swimming in a post COVID recovery. There are many great solutions out there and eXceeding has expertise in many and can recommend solutions based on your organisation’s individual needs and support the roll-out, adoption and long-term use.

When it comes to supply chain optimisation, e-Procurement is the way forward.

We are not suggesting that you should preclude digitalisation of other department processes, including supply chain optimisation and inventory management which can both drive cost optimisation. Here though we explore further the procurement software which may be incorporated into your organisation’s overall cost optimisation strategy.

Supplier onboarding

With a supplier onboarding platform, you can handle your supplier onboarding process through centrally storing your supplier information and check your supplier’s compliance with financial standards, insurance, certifications, industry best practice and organisational measures, manage your key supplier contacts and create bespoke workflows for supplier approval. To guarantee supplier compliance and control the onboarding due diligence can be repeated at regular intervals, giving continued peace of mind.

Spend analytics

To reduce procurement costs, you need to have visibility of your organisation’s spend data and the ability to conduct analysis of that data to effectively identify cost saving opportunities.

The analytics process captures the spend data and through simple assimilation of the data by querying what, who, how, why, where and when are you spending - an effective cost optimisation and sourcing strategy can be determined and implemented as a result.

Spend analytics software allows you to record the raw data in one place creating visual representations and interrogate that information to provide critical insights into your organisations’ spending, resulting in the development of an effective cost optimisation strategy.

Online auction software

To reveal procurement opportunities and deliver cost reductions, online auctions are key and nothing is as effective as reverse e-auctions to encourage suppliers to drop their price on commodity procurements.

Online auctions are becoming the normal way of conducting business in both the private and Public Sector, so having a platform to which you can invite suppliers to bid for all areas of your organisations spend, for both products and services, means that suppliers are prepared to engage and offer the best price.

This is an efficient and transparent approach to the market and increases the competitiveness across a range of suppliers, allowing your procurement team to deliver savings quickly and effectively.

Contract Management Database

Being able to store all of your contracts in one central database helps organisations improve the visibility of existing contacts; it ensures all key dates, SLAs, KPIs, service credits and commercials are available, tracked and managed. Automatic reminders can be sent when a contract is due to expire (avoiding auto-renewals of contracts no longer required), or allowing sufficient notice to run a new procurement for complex goods or services.

A contract management database facilitates the management of the supplier during the term of the contract – essential in longer-term agreements with key suppliers.

Standardising process, increasing spend visibility, ensuring compliance and providing a reporting tool for performance analysis and measurement, with a contract management tool you can identify and reduce maverick spending (through increased control and visibility) as well as improve the tracking and reporting of the agreed commercials – e.g. the price/fees, savings and rebates.

To discover how eXceeding can support you in deploying a range of e-Procurement solutions and provide your business with the opportunity to stay up-to-date with the technology available to you, please call or email in order to optimise your procurement processes and unlock cost savings.