Procurement Technology: Top 4 Ways it is Impacting Supply Chain Functions
The continuous influx of innovation in the field of procurement and sourcing has made supply chain functions simpler by eliminating tiring paperwork and automating complex as well as simple tasks. Procurement technology solutions like e-procurement tools and many others significantly benefit businesses by allowing better visibility, greater productivity, and cost efficiency. Traditional techniques such as […]READ MORE >>
The continuous influx of innovation in the field of procurement and sourcing has made supply chain functions simpler by eliminating tiring paperwork and automating complex as well as simple tasks. Procurement technology solutions like e-procurement tools and many others significantly benefit businesses by allowing better visibility, greater productivity, and cost efficiency. Traditional techniques such as category expertise and supplier relationship management are still relevant but the new procurement technology solutions are transforming the way businesses approach supplier negotiation, contract management, category management, and reverse auction. The high degree of granularity achieved through the use of procurement technology enhances business agility, drives continuous process improvement, and supports an operating model that boosts business excellence within procurement and supply chain functions. In this article, we have talked about a few interesting ways in which procurement technology is impacting supply chain functions.
Procurement Technology in Supply Chain Functions
Mobile procurement has made supply chain efficient
We cannot deny the fact that procurement professionals are on the move and demand instant information. This is where procurement technology plays an important role. It empowers them to drive better value and results. With such technology, organizations can streamline their procurement processes and supply chain functions with features like purchase order creation, demand notifications and real-time analytics from a mobile device. Procurement professionals can also request and compare items conveniently, providing them complete visibility on suppliers.
Digital signatures have secured supply chain functions
Digital signature and certificates make the e-tendering process possible through its capacity to access information of buyers or services online and ensuring security. Digital signatures drive away the lengthy paperwork and allow for contracts to be carried out in lesser time. Additionally, this procurement technology also encourages automatic contracts and eases the request for proposal processes apart from simplifying the order of purchase.
E-catalogs have improved reliability
Unlike services catalog or traditional product, e-catalogs are interactive and can store huge quantities of items that can be classified and organized into different categories as per requirement. Such a procurement technology can be easily modified and edited on a recurrent basis and help in converting inquiries resulting in significant cost savings.
Reduced operational costs in supply chain functions
Today, both small and medium business enterprises are migrating to cloud technology to enjoy the benefits of procurement technology solutions without investing much on IT infrastructures. Also, businesses are opting for a Software-as-a-Service (SaaS) model to meet their procurement needs. Such digital procurement platforms provide great value that in-house solutions can never match. Additionally, cloud migration can reduce the overall costs and provide scalability and flexibility to the organization.
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