Without Supply Market Insights, Procurement Agility is a Distant Dream

supply market

Without Supply Market Insights, Procurement Agility is a Distant Dream

Agility is often defined as the ability to think or move quickly. But in procurement terms, we can define it as a procurement process that is highly visible, flexible and mobile. It is very essential for the organizations to have an agile supply chain and procurement process. When an organization tries to achieve procurement agility, it is crucial for the management to identify and comprehend the ways to fulfill the ever changing needs of their stakeholders.

Agility in Procurement – The Questions You Should Ask

By building an agile procurement process, businesses can face new challenges and create avenues for opportunity in the globalized economy. Organizations that have a robust procurement function in place gain a competitive advantage over their competitors in terms of people, finances and processes. At this juncture, it is important for supply chain professionals to ask themselves a few questions,

  • Does the procurement team have the necessary skill and knowledge?
  • Have we incorporated best-in-class industry practices within our supply chain practices and processes?
  • Does a cross functional link exist within our organization or are they functioning as silos?
  • Can we leverage supply market insights and knowledge of potential risk factors to gain competitive edge over others?
  • Do we have a business-continuity plan in place to face various supply chain risks?

How to Drive Procurement Agility?

For a successful transformation, the management has to ensure that agility is to be woven deep into the organizational fabric and its operations. But why do the companies need this transformation, you ask? In this dynamic market landscape, the processes keep changing rapidly right from the technology to people, therefore making it crucial for the management to follow the best-in-class practices to keep up with this dynamic market conditions, innovation and competition. But how is this possible? Here’s how.

  • Prioritizing skills, enabling cross functional communication and streamlining processes by adopting technology to redesign and develop supply chain transparency.
  • Adopting digital transformation, building a robust cloud infrastructure, creating a paperless environment and a virtual business network, and other capabilities that drive business agility.
  • Focusing on activities that add value rather than those meant solely for transactional purpose, thereby freeing up resources to address strategic business needs.
  • Leveraging data-driven market intelligence and predictive analytics by investing in cloud infrastructure and adopting digital technologies to gain a competitive advantage.
  • Last but not the least, investing in talent acquisition and development, building their analytical skills and expanding their knowledge base, and creating a plan to retain talent within the organization by incentivizing and compensating them for their efforts and achievements.

Procurement agility is a key step to achieve business success. Thus, organizations can achieve this by ensuring the processes are clearly visible, flexible and highly mobile. In short, to keep up with the changing dynamics the procurement professionals must develop an agility agenda to achieve organizational objectives. At SpendEdge, we provide supply market intelligence and spend benchmarking analysis among a wide range of solutions that help companies to make strategic procurement decisions, understand price trends and its impact on the overall spend and thus drive profitability.

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