According to the Hackett Group, 84% of procurement departments believe digitalization is the next step for their respective industries. Procurement is one huge process which includes different departments of a company, whole of time and other resources to get that done. It is obvious that the digitization of any such complex processes makes it as simple as possible. The digital takeover is inevitable in any industry for that matter. At some point, any business will have to adapt the same for existence.
The first step on the road to digital procurement is nothing but the understanding of the transformation and the yield. You’ve got to be aware of the latest terminology and trends coursing through the industry. Often, words like “digitization” and “digital transformation” get used incorrectly, and this makes it hard for businesses to strategize effectively at many circumstances.
Tech companies have realized for a while now that digitization is going to be huge boons for businesses looking to shore up their supply chains. After understanding the transformation process, these packages have come to be known by a few different terms, including “total spend management.”
Total spend management digitizes procurement, invoice management, expenses and rewards, analysis and data visualization, supplier management and sourcing. It does all that within one system – with several specialized applications feeding into the cloud platform.
Advantages of Digital Procurement:
1. Valued-based procurement :
The starting point is to develop a strong overall procurement strategy – one that is customer-centric and focused on delivering the best total value to the stakeholders. This might mean the emphasis is on cost reduction, but it could also mean the emphasis is on supply assurance, quality assurance or risk reduction or innovation despite the cost.
2. Digital assessment:
Assessment on procurement process with digitization inducted in it is very important. For instance, the objectives which digitization helps to solve, the degree of impact will digital bring to these outcomes and where will digitization deliver the highest impact?
3. Tools and tech:
Once you understand and answer the questions, you can then take the next step, which is to identify the right tools and technologies to implement this strategy. These tools should be straightforward to adopt, user-friendly and easy to implement within the data environment of your organization and ensure they can help address your procurement objectives and technology questions.
A brand like Kobster, which is also the pioneer to introduce an e-procurement tool, Kobster Elite has organically grown with a better understanding of corporate needs and implemented them all in the course of time. This digital product helps Indian corporates to procure easily and it helps you cut cost in a bigger way. This is highly reliable as the entire process is transparent.