Summary In the contemporary business environment, digital procurement is becoming increasingly popular and sought after by businesses around the world. The relationships …
How can digital transformation management revamp procurement processes?
Digital transformation can be used to scale up and simplify processes on a centralised and integrated foundation. Digital transformation aims to improve procedures, change cultures and stakeholder relationships, achieve objectives, and level up customer experience.
Why is digital transformation important?
Data has shown that about 91% of businesses are engaged in digital transformation initiatives, while 87% of business leaders have kept digitalisation as a top-tier priority.
Digital transformation is crucial for a firm’s survival in today’s business landscape. Transformation scales across all levels of the business and allows benefits to be derived across all stakeholder groups.
Since digital transformation is implemented for the betterment of the entire business and stakeholder groups, the benefits and the importance of digital transformation are interlinked.
Digital transformation is important because it allows businesses to:
Lower overheads
Implementing digital transformation allows a business to reduce its overheads due to low errors and reworks. This improves quality and positively contributes to the image and reputation of your business.
Increase efficiency
With digital transformation, a firm can meet all efficiency targets and time management objectives because the centralisation of processes eliminates errors and oversights throughout the business process.
Gain a competitive edge
With lowered overheads and increased efficiency, firms can excel in comparison to other competitors in the industry, which can result in the establishment of unique selling points and value addition to the firm.
Promote data analytics
Digital transformation focuses on the centralisation of processes. It interconnects processes and generates reports, which can aid in better decision-making and the ability to gain a better competitive edge.
Optimise resource allocation
With reports and insights generation comes the ability to optimise resource allocation. A business can allocate the right amount of resources, reduce wastage incurred by the firm, and reach sustainable objectives.
Better stakeholder management
Integration leads to better communication with stakeholders. This reduces the errors caused by miscommunication, which results in smoothened business processes and leads to efficiency across the board.
How to optimise digital transformation management in procurement operations
Procurement digitalisation is allowing businesses to convert their supply chain management into an integrated system facilitated through software. This brings all stakeholders together by generating newer and unique selling points.
As it is strategic and affects the entire stakeholder base, a structured process must be followed when implementing and optimising a digital transformation strategy.
This is the process that must be followed:
Plan out the strategy and outline the available resources
Research ways that digital transformation can be integrated
Outline the financial availability and draw up a budget
Communicate with stakeholders and get their input
Implement a test run and time frame for adaption
Get reviews and feedback from stakeholders on the test run
Fully launch the digital transformation management strategy
Evaluate the management strategy for the long run
The impact of digital transformation on procurement
There is a clear definition of goals and objectives which allows firms to regulate and push compliance in operations. Data has shown that 76% of firms are investing in supply chain and automation to streamline operations.
Enhancing communication encourages the establishment of inter-stakeholder bonds, which facilitates better decision-making—meeting the direct needs of each stakeholder party. This way, the business can increase quality, optimise resource allocation and costs, and safeguard profit levels.
Get assistance from Kronos Group to align and enhance your procurement operations
Kronos Group’s expertise in providing consulting services for digital transformation management has been recognised in Europe and across the world.
We have significant weightage in analysing, recommending, and assisting in the implementation of optimised strategies, processes, and technologies for businesses to achieve their procurement transformation goals.
Get in touch with us today and assess your digital maturity for free and explore how we can collaborate to improve your business processes. Let us assist you in diving into digital transformation management to streamline operations and achieve set objectives.
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FAQ
When implementing a digital transformation strategy, there are many things to consider such as the nature of the business, stakeholder adaptability, competitive landscape, business objectives, financial availability, and the state of the economy.
Digital transformation excels in aligning business objectives and procedures. Digital transformation binds the organisation under one umbrella of processes that increase transparency, connectivity, and communication within the organisation—reducing any barriers and shortcomings in operations. Digital transformation pushes effective communication and stakeholder connectivity.
