Summary In the contemporary business environment, digital procurement is becoming increasingly popular and sought after by businesses around the world. The relationships …
Leveraging digital procurement tools to enable procurement excellence
Digital procurement tools are elevating business approaches to changing and maturing markets, with nearly 90% of companies using a dedicated tool to simplify processes. Digital processes hence enable procurement excellence, allowing firms to gain a competitive edge and unique selling propositions.
What does procurement digitalisation have to offer?
Procurement digitalisation aims to create value throughout the organisation, from the first point of contact to the last. With procurement digitalisation, operations are streamlined, opportunity costs are reduced, and efficiencies and accuracies are improved along with stakeholder satisfaction.
Digitalisation also allows firms to keep a close eye on vital processes and gain access to enhanced digital procurement tools and data which can help cut costs and mitigate risks.
What are the benefits offered by procurement digitalisation?
Once procurement digitalisation is established and put into use, it will eventually evolve into procurement excellence. Effective procurement systems can result in increased efficiencies, accuracy, quality of service, and consumer satisfaction.
This is what procurement can bring to the table:
Efficiency, accuracy, and
clarity
Procurement digitalisation integrates and synchronises processes, which increases efficiency and accuracy—enhancing quality.
Clear channels of
communication
Digitalisation pushes for clear communication with improved visibility and transparency. This tends to increase accountability and stakeholder outlook.
Lower and better cost
management
The overall effects of digital procurement are build-ups in quality, clear communication, and low monotony in processes, which pushes costs down.
Ability to gain a competitive edge
It enables businesses to grasp unique selling propositions in terms of marketing and service provision to win over consumers from competitors.
What is the importance of procurement excellence?
Procurement excellence is the constant enhancement of the current procurement strategy. The main objectives of procurement excellence are lowering costs, and enhancing efficiency to drive profits and growth.
Procurement excellence can be achieved with a firm foundation built on digital procurement systems. Excellence aims to combine business objectives and smart analytics for constant improvement in the procurement process.
What are some digital procurement tools that enable procurement excellence?
In a saturating and escalating business landscape, it is important to always gain maximum competitive advantage and move towards cost reduction, constant operational excellence, and modern-day procedures.
There are five core digital procurement tools that can enable procurement excellence. They are:
e-Sourcing
This is the usage of software to identify, evaluate, and choose the appropriate supplier to engage with, to comply with organisational and stakeholder needs.
e-Auctioning
This is the management of online auctions to aid in the choosing and finalisation of adequate suppliers that can meet quality requirements set by the company.
e-Tendering
The process of using procurement software for selling and buying bids, advertising, consolidating suppliers, and establishing supply schedules and contracts.
e-Ordering
This is when purchase orders are formulated with deep analysis and monitoring of demand, stakeholder behaviour, and inventory and stock management.
e-Catalogue
This is where the company puts out their products and services online, giving it a digital presence and the ability to reach a wide consumer base.
Get assistance from Kronos Group to enhance procurement processes and fast-track to procurement excellence
Kronos Group is a consultancy for business transformation and excellence across Europe and beyond—with years of experience in analysing, monitoring, assisting, implementing strategies, and recommending technologies for the achievement of your business and procurement objectives.
Our procurement consultants will pave the way to unlock your business’s potential and get a hold of procurement tools and analytics for improved processes and objective achievement.
Irrespective of the size of your business, the nature of your business, or competition and economic conditions, our procurement consulting services can address all your concerns. Get in touch with us today to fasten your pace to digital maturity and procurement excellence.
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FAQ
These enable businesses to gain control over budgets, inventory controls, and sourcing processes. Some examples are e-sourcing, e-auctioning, e-tendering, e-ordering, and e-cataloguing tools.
It facilitates streamlined operations, unified processes, a seamlessly linked hierarchy, clear lines of communication, optimised workflows and assures quality. This results in better decision-making, lower costs, better stakeholder engagement and management, and increased efficiency and accuracy across the board.
Core technologies used in procurement consist of maturity assessments, spend analysis tools, supplier management tools, strategic software systems, procurement analytics, e-sourcing and e-contracting tools and e-auction tools.
