Reimagining Procurement with Digital Transformation in FY 2024
Reimagining Procurement with Digital Transformation in FY 2024
The COVID-19 pandemic, long-standing skilled labour shortages, and recent geopolitical developments have disrupted the global supply chain. As a result, companies are adopting various strategies to overcome these challenges. A recent McKinsey report(1) found that 67% of businesses have adopted digital tools for end-to-end supply chain visibility, making them twice as likely to avoid disruptions caused by early 2022 supply chain disruptions. Therefore, the digitisation of procurement is emerging as the most effective one for building resilient supply chains.
While more than 60% of companies have fully embraced digital transformation in procurement, others still face significant challenges in adopting and implementing digital tools. This digital divide is a significant issue that needs to be addressed in procurement functions. Let us take a closer look.
The Digital Divide: Analysing the Need-Gap in Procurement
Access to critical decision-support information such as production statuses, inventory levels, capacities, forecasts, KPIs, and more can be delayed when data is siloed and disconnected in procurement functions. Procurement functions still face challenges such as:
- Fragmented and outdated processes
- Poor data management
- Inefficient supplier management
- Lack of visibility into spend data
To overcome these barriers, procurement teams need to be more agile, efficient, and responsive to changes in the market by embracing digital transformation.
From Paper to Pixels: The Benefits of Digitising Your Procurement
Let us look at some of the beneficial impacts of digital transformation on procurement:
Automating Procurement Processes
- Digitisation can help eliminate the manual, time-consuming tasks that procurement teams have daily, such as supplier onboarding, contract management, and purchase order processing.
- Automation can help reduce errors, increase speed, and free procurement professionals’ time to focus on more strategic tasks.
Improving Data Management
- Digital transformation can help improve data management by providing real-time visibility into spend data. This visibility can help procurement teams identify trends, reduce costs, and negotiate better contracts with suppliers.
- By leveraging big data analytics and AI, procurement teams can gain insights into supplier performance, risk management, and compliance, enabling them to make data-driven decisions.
Enabling Efficient Supplier Management
Digitisation can help procurement teams manage supplier relationships more effectively by providing real-time insights into supplier performance, risk management, and compliance. This can help procurement teams optimise their supplier base, improve supplier performance, and reduce supplier risk.
The Future of Procurement is Digital: Join the Journey in FY 2024
The rise of digital transformation has elevated procurement from a tactical function to a strategic one, empowering procurement teams to generate value for their organisations. By leveraging technology, professionals can effectively tackle bottlenecks in the procurement process.
At Moglix, our tailored digital solutions are designed to streamline the entire procurement cycle. Download this case study to discover how we helped a major chemical company overcome supplier fragmentation, limited MRO purchase visibility, and procurement price variation challenges. Our solutions delivered an 85% reduction in processing of transactions, POs, and invoices and a 5% savings in procurement costs.
Contact us today to learn how we can help you digitally transform your procurement strategy.
Additional Reading:
Safety Frontline-A guide to choosing right gumboots for your industry
Safety Frontline-A guide to choosing right gumboots for your industry
Choosing the right gumboots for your job or industry is crucial to ensure proper protection and safety. With so many types of gumboots available, it can be overwhelming to know which one is suitable for your specific needs. Whether you work in construction, agriculture, or food processing ensuring you select the right gumboots for your job in a critical as the job itself.
We have created a industry specific safety gumboots guide which details, features you shouldn’t miss including in your safety gumboots as per the industry you operate in.
Food Processing
In the food processing industry, gumboots are essential to maintain a clean and hygienic work environment. Workers are often exposed to slippery floors, wet conditions, and various food-related substances, such as fats and oils. Therefore, gumboots should have slip-resistant soles, steel toes for impact protection, and chemical-resistant materials that are easy to clean and sanitize.
Mining
Mining is a hazardous industry that requires gumboots that can withstand harsh conditions and protect against various hazards, such as falling objects and chemical exposure. Gumboots for mining should have reinforced steel toes and shanks for impact protection, slip-resistant soles for traction, and chemical resistance to protect against hazardous materials.
Construction
Construction workers are often exposed to various hazards, such as falling objects, sharp objects, and uneven surfaces. Gumboots for construction should have steel toes for impact protection, slip-resistant soles for traction, and good ankle support for stability on uneven terrain.
Agriculture
Agriculture workers often work in muddy or wet conditions and are exposed to various hazards, such as animal waste and sharp objects. Gumboots for agriculture should be comfortable, waterproof, and have good traction to prevent slips and falls.
Chemical Manufacturing
Chemical manufacturing involves exposure to various hazardous chemicals that can cause burns and other health problems. Gumboots for chemical manufacturing should be made from chemical-resistant materials, such as neoprene or other synthetic materials, and have slip-resistant soles for traction.
Fishing
Fishing involves exposure to cold water and slippery surfaces. Gumboots for fishing should have good traction and waterproofing, as well as insulation for cold water.
Cleaning Services
Cleaning services workers are often exposed to wet and slippery surfaces and various cleaning chemicals. Gumboots for cleaning services should have slip-resistant soles, easy-to-clean surfaces, and chemical resistance to protect against exposure to cleaning chemicals.
Plumbing
Plumbers often work in wet and slippery conditions and are exposed to various chemicals and sharp objects. Gumboots for plumbing should have steel toes for impact protection, slip-resistant soles for traction, and chemical resistance to protect against exposure to hazardous materials.
Oil and Gas
Oil and gas workers are often exposed to various hazardous chemicals and conditions, such as extreme temperatures and slippery surfaces. Gumboots for oil and gas should be made from chemical-resistant materials, have good traction and insulation, and be slip-resistant for added safety.
Healthcare
In healthcare, gumboots are essential to protect against exposure to hazardous substances, such as blood and other bodily fluids. Gumboots for healthcare should have slip-resistant soles, chemical resistance, and anti-static properties to prevent the buildup of static electricity.
Choosing the right gumboots for your specific industry and application is essential to protect you at your workplace, and look for gumboots that have the appropriate features, such as slip-resistant soles, steel toes, chemical resistance, and insulation.At Moglix you have access to the widest range of industry and application specific safety gumboots from from best in class brands all in one place. Check our range
Gumboot Guide
Please Note: This guide is an indicative guide, eventually gumboot material, features and application will depend on your eventual use
Evolution of Safety Gumboots in Workplace Safety: A Comprehensive Guide
Evolution of Safety Gumboots in Workplace Safety: A Comprehensive Guide
Also known as wellies, rubber boots, rain boots, muck boots and many more depending upon the country you are in, Gumboots have been around since the early 19th century. Originally designed for farmers to protect their feet from mud and water, gumboots have evolved over time to become an essential part of personal protective equipment (PPE) in various industries.
Origins of the Gumboots
Gumboots were first invented in Europe for farmers working in wet and muddy conditions. The first gumboots were made of leather, but this material was heavy and didn’t provide adequate protection against water. In the mid-19th century, Charles Goodyear invented vulcanized rubber, which revolutionized the gumboot industry. Rubber gumboots were much lighter and more durable than leather gumboots, and they quickly became popular among farmers and other outdoor workers.
Industrial Revolution
During the Industrial Revolution, gumboots became popular in factories, mines, and other industrial workplaces. Workers needed footwear that could protect their feet from falling objects, chemicals, and other hazards. Rubber gumboots were a perfect fit for these requirements, and they quickly became an essential part of PPE in various industries.
Rubber Technology
The invention of vulcanized rubber paved the way for various innovations in gumboot design and manufacturing. Rubber gumboots could now be produced in different sizes, shapes, and colors. They also became more comfortable to wear, thanks to the development of rubber cushioning and insoles.
World War I and II
During World War I and II, gumboots became crucial for soldiers in the trenches. They protected soldiers’ feet from wet and muddy conditions, as well as from diseases like trench foot. The demand for gumboots during these wars led to significant innovations in gumboot design and manufacturing. For instance, manufacturers started using lighter and more flexible materials to make gumboots that were more comfortable to wear for long periods.
Modern Safety Standards
In the 20th century, safety gumboots became subject to strict safety standards and regulations. These standards were developed to ensure that gumboots provided adequate protection against various hazards in the workplace. Today, safety gumboots are tested for slip resistance, impact resistance, and other safety features before they can be sold to the public. According to a report by Zion Market Research, the global safety footwear market was valued at $6.8 billion in 2020 and is expected to reach $9.8 billion by 2028, growing at a CAGR of 4.8% during the forecast period.
Materials Innovation
In recent years, materials such as neoprene, PVC, and polyurethane have been used in the production of safety gumboots. These materials offer superior resistance to chemicals, oils, and other hazards, making them ideal for use in industries like construction, mining, and agriculture. According to a report by Allied Market Research, the global safety footwear market is expected to witness significant growth due to the increasing demand for lightweight, comfortable, and durable safety footwear.
Global Industry
Today, safety gumboots are produced and used all over the world. Different cultures and industries have influenced the design and development of safety gumboots in different parts of the world. For instance, gumboots used in the agriculture industry in India are designed to be comfortable and breathable, while those used in the mining industry in South Africa are designed to be durable and slip-resistant.
Road ahead
We can expect to see continued innovation in the design and materials used to make gumboots. One promising trend is the growing use of sustainable and eco-friendly materials, which can reduce the environmental impact of these essential safety tools. At the same time, advances in 3D printing technology could allow for greater customization and personalization of gumboots, improving their fit and comfort.
The evolution of gumboots reflects a broader trend in workplace safety, which is a growing recognition of the importance of protecting workers from hazards and providing them with the tools they need to do their jobs safely and effectively. As technology and materials continue to advance, we can expect gumboots to remain a critical part of workplace safety for many years to come. At Moglix you have access to the widest range of industry and application specific safety gumboots from from best in class brands all in one place. Check our range
Overheating of Switchgear Components and How to Mitigate It
Overheating of Switchgear Components and How to Mitigate It
Switchgear components are essential for the safe and reliable operation of power distribution systems. However, like any electrical equipment, they can be susceptible to overheating. This not only leads to equipment failure and downtime but also poses safety hazards. Therefore, it’s crucial to maintain proper temperature control for switchgear components. Lets understand common causes of switchgear overheating and some practical tips and advanced solutions for mitigating it.
Common Causes of Switchgear Overheating
Overheating of switchgear components can occur due to various reasons, including:
Overloaded circuits: When the electrical load on a switchgear component exceeds its rated capacity, it generates excess heat, leading to overheating.
Poor ventilation: Switchgear components require adequate ventilation to dissipate the heat they generate. Poor ventilation can cause the heat to build up, resulting in overheating.
High ambient temperatures: When the ambient temperature exceeds the switchgear component’s rated temperature, it can lead to overheating.
Inadequate maintenance: Dirty and corroded contacts, worn-out insulation, and loose connections can all cause increased resistance and heat generation, leading to overheating.
Best Practices for Mitigating Switchgear Overheating
To mitigate switchgear overheating, the following best practices should be followed:
Regular inspection and maintenance: Switchgear components should be inspected and maintained regularly to detect any signs of overheating early on.
Proper ventilation: Adequate ventilation is crucial to dissipate the heat generated by switchgear components. The ventilation system should be designed and installed to meet the switchgear manufacturer’s recommendations.
Thermal imaging: Thermal imaging can be used to detect hot spots in switchgear components, enabling early detection and mitigation of overheating.
Load management: Electrical loads should be managed to ensure that they don’t exceed the switchgear component’s rated capacity.
Advanced Solutions for Switchgear Temperature Control
In addition to the best practices mentioned above, the following advanced solutions can be used for switchgear temperature control:
Active cooling systems: Active cooling systems, such as air conditioning and liquid cooling, can be used to cool switchgear components and maintain their temperature within the rated range.
Intelligent temperature monitoring: Intelligent temperature monitoring systems can be used to continuously monitor switchgear components’ temperature and adjust the cooling system as required.
Automated load shedding: Automated load shedding systems can be used to shed excess electrical loads automatically, preventing switchgear components from overheating.
Use Cases
To illustrate the practical applications of the solutions discussed above, let’s look at a few use cases:
- A switchgear component at a manufacturing plant was consistently overheating due to high ambient temperatures. To mitigate this, the plant installed an active cooling system that maintained the component’s temperature within the rated range.
- A thermal imaging survey detected hot spots in a switchgear component at a data center. The hot spots were caused by overloaded circuits. To prevent overheating, the data center implemented load shedding, shedding excess loads automatically to keep the switchgear component within its rated capacity.
Moving Forward
As technology advances, new solutions and innovations for switchgear temperature control are emerging. These include:
Advanced sensors: Advanced sensors can provide more accurate temperature readings, enabling better temperature control and more efficient cooling.
Artificial intelligence: Artificial intelligence can be used to predict when switchgear components are likely to overheat, enabling proactive mitigation.
Renewable energy sources: As more renewable energy sources, such as solar and wind, are integrated into power distribution systems, switchgear temperature control will become even more critical to ensure safe and reliable operation.
Overheating of switchgear components can lead to equipment failure, downtime, and safety hazards. Hence it’s important to identify the common causes of overheating and implement best practices. For all your switchgear supplies you can get in touch with us. Moglix, has the most comprehensive range of switchgear supplies and our pan india network of partners and warehouses ensure no place is remote for us to reach. Know more.
How to Prevent Workplace Electrical Fires: Root Causes and Actionable Strategies
How to Prevent Workplace Electrical Fires: Root Causes and Actionable Strategies
Electrical fires are a common and devastating occurrence in the workplace. A study by the National Crime Records Bureau reveals that workplace electrical fires claimed the lives of 1,808 individuals in 2021 alone, equating to nearly five fatalities per day. However, as with many catastrophic events, the true cost extends beyond mere figures. Lives are forever changed, families grapple with loss, and businesses may never fully recover.
Understanding the causes of workplace electrical hazards and taking proactive measures to mitigate the risks can make all the difference. This blog delves into the causes and costs of workplace electrical fires and explores actionable strategies for businesses to prioritize workplace safety.
Connecting the Dots: Causes of Workplace Electrical Fires
Workplace electrical fires are often caused by faulty electrical equipment, poor electrical installation, improper grounding, overhead power lines, and misuse of electrical equipment. These factors can lead to electrical arcing, igniting nearby flammable materials, and causing a fire. Other common causes of workplace electrical hazards include overloaded circuits, exposed electrical wiring, and improper use of extension cords.
Fanning the Flames: How Workplace Electrical Fires Impact the Bottom Line
The financial cost of workplace electrical fires can be substantial. Beyond the apparent property damage, businesses may also experience a domino effect of losses, from decreased productivity and business interruption to increased insurance premiums. The cost of fire damage restoration and replacement of damaged equipment can quickly add up, and some businesses may not be able to recover from the financial impact of an electrical fire.
Recent studies show that workplace fires account for a staggering USD 328 billion in annual costs in the US alone, with 22% of these fires resulting from electrical sources. With such high stakes, companies must engage in business continuity planning to safeguard their financial health and long-term viability.
Shock-Proof Your Business: Best Practices for Preventing Workplace Electrical Fires
Businesses must prioritize electrical safety to mitigate the risk of workplace electrical fires. This can be achieved by implementing proper electrical installation and maintenance procedures, employee training programs, and regular equipment inspections. Here are some steps that businesses can take to minimize the risk of workplace electrical fires:
Conduct regular electrical safety inspections: Regular inspections of electrical equipment and wiring can help identify potential hazards before they result in a fire and enable electric fire prevention.
Develop an electrical safety program: A comprehensive electrical safety program can provide employees with the knowledge and tools they need to use electrical equipment safely.
Provide regular training: Ongoing training can help employees stay informed about the latest electrical safety practices and guidelines.
Invest in Quality electrical supplies – Invest in high quality electrical supplies like switchgears, wires and cables etc. Best would be to source it from a one stop solution provider like Moglix so that you have access the comprehensive product range from bets in class brands
Ensure proper installation and maintenance: Proper installation and maintenance of electrical equipment can help prevent electrical fires caused limited product understanding. Moglix has on roll electrical experts that can guide through procurement, installation and maintenance cycles.
Promote a culture of workplace safety: Encourage employees to prioritize safety and report any potential hazards immediately.
OSHA Compliance: Ensuring compliance with Occupational Safety and Health Administration standards can also help in fire risk management.
Wiring a Safer Future
Mitigating the risks of workplace electrical fires requires a comprehensive approach that prioritizes electrical safety through regular inspections, employee safety training, and proper equipment installation and maintenance. By taking these steps, businesses can create a safer work environment for their employees and minimize the risks and costs associated with electrical hazards. At Moglix, we are committed to the cause of employee safety in the workplace. Contact us today to explore supplies and solutions that keep your workplace safe from fire related accidents
Why We Need to Rethink PPE for Women in Industry?
Why We Need to Rethink PPE for Women in Industry?
When we think of personal protective equipment (PPE) in the industrial sector, we will likely picture a bulky suit and helmet on a male worker. However, this image fails to acknowledge the millions of women working in industries that require PPE. Women face unique challenges in the workplace, including ill-fitting PPE and inadequate safety gear, which can expose them to dangerous working conditions.
Despite the pressing need for gender-specific PPE, a recent Women in Global Health study(1) reveals that about three-quarters of the women surveyed experienced problems with PPE fit, and a mere 14% reported using exclusively fit-tested PPE. This alarming finding is a cause for concern as poorly fitting PPE can lead to reduced productivity, injuries, and in severe cases, fatalities. The fact that women face such challenges in obtaining appropriate PPE should be treated as a critical issue that requires our immediate attention to ensure women’s safety at manufacturing facilities.
One Size Does Not Fit All: The Gender Gap in PPE Procurement
The lack of awareness within some organizations of women’s unique PPE needs and female-friendly safety equipment is a primary challenge women face. The all too common “one size fits all” strategy is often employed in PPE procurement, leading to employers neglecting the purchase of PPE designed for women and displaying indifference towards their safety.
Additionally, the male-dominated construction industry culture presents another significant barrier to women’s access to adequately fitting PPE. Women are frequently expected to make do with PPE designed for men, modify their gear, or purchase their PPE outright. This culture of indifference must be challenged, and solutions must be sought to provide female worker safety in the manufacturing sector.
Procuring for Diversity: The Importance of Gender-Specific PPE
The importance of addressing PPE challenges for women cannot be overstated. In many industries, women are exposed to the same risks as men, including exposure to chemicals, heat, and electrical hazards. Without adequate protection, women are at risk of injury or even death. To be effective, the safety-oriented design and production of PPE must cater to the distinct requirements of every gender.
In addition to the moral imperative of ensuring women’s safety, there are practical reasons to address PPE challenges for women. When workers feel safe and protected, they are more likely to be productive and engaged in their work, leading to a more positive and efficient work environment.
Empowering Women with Innovative PPE Solutions: Join the Revolution
Unfortunately, many women still face unique challenges regarding selecting and using PPE in the workplace. To bridge this gap, employers must engage women in the PPE selection process and thoroughly assess their needs.
Thankfully, some manufacturers have recognized the need for gender-specific PPE and are leading the charge toward innovation in this area. Women’s PPE is now being designed to fit the female body shape, with adjustments made for height, waist size, and shoulder width differences. The use of softer materials and more flexible fabrics not only improves comfort and range of motion but also promotes safety.
Moreover, In order increase adoption women’s PPE is now being made more practical and appealing, with various colors, patterns, and form-fitting designs. This is a welcome change as it encourages women to wear their PPE more often, improving safety and reducing the risk of workplace accidents.
At Moglix, you have access to the most comprehensive range of safety supplies and solutions. You can find a range of PPE solutions specifically designed for women at workplace. Contact us today and partner with us to build a safer environment for women.
[Supply Chain Central] Is your business ready for FY23?
[Supply Chain Central] Is your business ready for FY23?
The year 2023 has arrived, and with it, a new era of supply chain management trends. Businesses must be ready to adapt to these changes to remain competitive in the global market.
As we continue to recover from the pandemic, the supply chain has become even more critical, and many organizations are investing time and resources in supply chain management to mitigate the disruptions of early 2022.
Notably, a recent McKinsey report highlights that 67%(1) of respondents have adopted digital tools for end-to-end supply chain visibility.
This article discusses some key supply chain management trends to watch for in 2023.
Digital Revolution of Supply Chains: The Future is Now
The shift toward digitization may be the most significant trend in supply chain management in 2023. As the world becomes more connected, companies will embrace digitization on a large scale to stay ahead of the competition.
Digitization of supply chains requires implementing the internet of things (IoT), cloud-based networks, artificial intelligence, and machine learning. These digital tools help businesses to track, monitor and analyze every aspect of the supply chain management process.
By adopting these tools, companies can streamline their supply chains, develop new revenue streams, and tap into new markets.
Green is the New Gold: Prioritizing Sustainable Supply Chains
With the rising global emphasis on environmental sustainability, businesses will prioritize sustainable supply chains. Investors, including private equity firms and venture capitalists, are increasingly opting for sustainable organizations in their portfolios.
Thus, companies will look to demonstrate a commitment to sustainability to gain a competitive edge in funding and attracting investors.
To achieve sustainable supply chain operations, businesses will adopt green logistics practices that are environment-friendly. This can include investing in energy-efficient technologies and utilizing sustainable packaging materials.
Environment, Social, and Governance (ESG) focused procurement decisions will also gain momentum for implementing sustainable supply chain management processes.
Don’t Fall Behind: How Partnerships are Changing the Supply Chain Landscape
Don’t miss out on the opportunity to stay ahead of the competition by harnessing the power of supply chain integrations. The year 2023 is expected to witness a proliferation of supply chain components due to many companies pursuing cost reduction and enhanced customer service.
As a result, companies that fail to integrate with third-party service providers risk falling behind.
In 2023, integration with third-party service providers will become common for reducing overall freight expenses and optimizing the supply chain.
Moreover, companies will seek partnerships with other enterprises that leverage digital solutions to improve delivery estimation accuracy and minimize administrative work. This would further enhance the overall efficiency of supply chain management.
Future-proofing Your Supply Chain: Building Risk and Resilience
In today’s complex and unpredictable business environment, managing supply chain risks and building resilience has become a critical priority for companies. These risks can emerge in various forms, from natural disasters that disrupt the flow of goods to cyber-attacks that jeopardize sensitive data.
To address these risks, companies will embrace an array of strategies including the following:
- Supplier diversification– Companies will adopt strategies to mitigate the risks of overreliance on a single supplier. Supplier diversification will become a key priority as companies seek to avoid the impact of supply chain disruptions.
- Localizing production and transportation– Businesses will seek to reduce the distance between the manufacturing plant and end customers and transport goods through local channels, such as short-haul trucking or rail transport.
- Forging non-traditional partnerships– Companies will seek to expand their network of partners to tap into new sources of innovation, secure access to specialized talent, and access new markets.
A robust supply chain design will be adopted to enable quick recovery from adverse events, provide superior customer service, and increase the market share.
Big Data, Big Benefits: Leveraging Big Data and Analytics
Big data and advanced analytics will power the future of the global supply chain. The ability to collect and analyze vast amounts of data will provide greater visibility, synchronized planning and execution, data-driven decision-making, and profitability.
By leveraging these technologies, companies can optimize their supply chains, improve delivery times, and enhance the overall customer experience by identifying patterns and trends. Implementing algorithms and robotics will further drive efficiency and productivity, making big data and analytics the cornerstone of future-proof supply chain operations.
Cybersecurity for the Win: Protecting Your Supply Chain from Modern Threats
As businesses continue to expand their digital footprint, the threat of cybercrime becomes more prevalent. The supply chain, in particular, is increasingly vulnerable to attacks from cybercriminals seeking to gain access to sensitive data.
To safeguard against these threats, companies are adopting a proactive approach to cybersecurity. This includes investing in anti-hacking systems, implementing firewalls, providing employee training, and building stronger relationships with supply chain partners.
Through collaboration and coordinated efforts, businesses are protecting their assets and people from cyber threats, ensuring the resilience of their supply chains.
Reshaping the Map: The Rise of Domestic Self-Sufficiency
Geopolitical tensions have promoted domestic self-sufficiency in material supply and manufacturing.
As nations grow more skeptical of cooperation and interdependence, governments seek to secure the supply chain. They’re exploring domestic production capabilities and ‘friend-shoring’ relationships with like-minded and geographically proximate countries.
This approach provides a more secure supply of goods and mitigates the risk of material unavailability or supply chain disruption due to geopolitical tensions. Thus companies may have to restructure their supply chains in 2023.
Capitalizing on Supply Chain Management Trends 2023
The trends in supply change management in 2023 will transform how businesses operate. At Moglix, we are well-equipped to help companies to navigate these changes, capitalize on opportunities and stay ahead of the curve.
We understand the challenges businesses may face as they seek to adapt to these changes in the supply chain landscape. Contact us to learn more about how we can help your business optimize its supply chain management strategy.
Additional Reading:
Rethinking Procurement: How e-Procurement Solutions Outshine Traditional ERPs!
Rethinking Procurement: How e-Procurement Solutions Outshine Traditional ERPs!
Over the past few years, the procurement industry has experienced a significant transformation due to the widespread adoption of e-commerce and the advancement of the internet. As a result, nearly 68%(1) of B2B buyers now purchase goods online.
More specifically, the procurement preference of B2B buyers has shifted towards dedicated solutions rather than relying on the procurement modules of traditional ERP systems. This shift is happening due to the unique advantages offered by dedicated e-procurement solutions, such as enhanced transparency, increased efficiency, and improved supplier relationships.
This blog will delve deeper into the benefits of using e-procurement solutions.
Competitive Advantages of e-Procurement Solutions
E-Procurement solutions have become increasingly popular among businesses due to their significant competitive advantages over traditional ERP systems. While an ERP system integrates business processes and is generally built for finance departments, it lacks the specialized features required for effective procurement management.
In contrast, an e-procurement solution is designed specifically to manage procurement functions.
So what are the competitive advantages of e-Procurement solutions?
1. Procure Smarter, Not Harder: Leverage Automation with e-Procurement Solutions
Procurement operations can be made more efficient and cost-effective with automation. Unlike ERP systems, which often involve manual processes, e-procurement solutions offer fully integrated and automated processes.
By utilizing the benefits of automation, you can accelerate the procurement process, minimize errors, and streamline the entire digital procurement value chain.
2. Unlock Flexibility with e-Procurement Solutions
Traditional ERP tools can handle basic procurement, but for a broader range of procurement strategies, e-procurement solutions offer more adaptability. These solutions make managing complex proposals that involve multiple geographies, stakeholders, and suppliers easier.
With an e-procurement solution, you can customize and tailor the tool to suit your specific procurement needs.
3. Maximize Cost Savings with Analytics
A recent study by Deloitte found that e-procurement can result in a 60% reduction in operational costs.
4. One Stop Shop for Business Insights: Benefits of Data Consolidation
With the help of a procurement analytics tool in-built into an e-procurement solution, you can transform your organization’s spending practices by obtaining real-time tracking of costs. Better cost monitoring can help allocate resources toward more strategic initiatives.
An e-procurement solution can streamline your business by consolidating key areas such as purchases, sales, inventory, and finance. With all your business data in one place, you can quickly gain valuable insights and make informed decisions without sifting through multiple reports.
Unlike ERP tools, which lack comprehensive data presentation, e-procurement solutions offer a holistic view of your business operations.
5. Stronger Supplier Relationships
An effective e-procurement system can lower transaction costs, decrease supply chain risks, and enhance supplier collaboration and transparency. With better supplier management, your organization can build stronger strategic partnerships while reducing overall risk.
Embrace the Future of Procurement with e-Procurement Solutions
As a result of these advantages, a survey conducted by McKinsey(3) found that CPOs believed that digital procurement could lead to a 40% increase in annual savings, 30-50% less time spent on sourcing, and a 50% reduction in value leakage.
Businesses can unlock numerous benefits by selecting dedicated procurement solutions that enable them to optimize procurement processes, make informed decisions, and build stronger strategic partnerships.
An ideal sourcing solution can help achieve better visibility over the supply chain, reduce procurement costs, and drive business growth. Learn more about Moglix to understand how our sourcing solutions can lead you into the future of B2B commerce and supply chain management.
Additional resources:
1. E-Procurement: Its Future in the Digital World
2. https://www2.deloitte.com/hu/en/events/esemenyek/2021/a-beszerzes-jovoje-2022.html
Mastering the Art of Supplier Relationship Management (SRM): Key Strategies for Sustainable Relationships
Mastering the Art of Supplier Relationship Management (SRM): Key Strategies for Sustainable Relationships
Almost 68%1 of CPOs state that supplier management will be their top priority going forward for achieving strategic business outcomes. This makes most sense, as effective supplier relationship management (SRM) enables businesses to get deeper insights into pricing trends, raise profitability, and improve their cost baselines—at times, by 5–10%2—by innovatively collaborating with their suppliers.
Yet, nearly 49%3 of procurement managers have failed at transforming their supplier relationships. So, how can you avoid their fate and gain greater visibility into your suppliers’ relationships to ensure long-term success?
The Problem With Supplier Relationships
Regrettably, supplier relationships are often marred by an over-emphasis on cost-cutting and a lack of trust. To add fuel to the fire, communication gaps and misalignment of goals worsen this relationship further.
So to effectively deal with these challenges and ensure greater supply chain continuity, firms must focus on building strategic and value-based ties with their suppliers.
5 Strategies for Building a Resilient Supplier Management Framework
Strong supplier relationship management (SRM) entails a structured approach to evaluating diverse vendors and their strategic importance to the firm. Firms can configure successful supplier relationship management by adopting the following strategies:
Segment Your Suppliers Per Their Relative Importance
- Supplier segmentation, i.e., the practice of classifying suppliers into different categories based on their strategic importance to the firm is the most fundamental step of effective supplier management.
- Generally, managers default to the Kraljic Matrix for undertaking supplier segmentation. It assesses suppliers on their profitability and risk, classifying dealers with a high-profit impact and higher risk as strategic and relegating others as transactional.
- Alternatively, you can also opt for the Pareto principle, which necessitates that 20% of suppliers must account for 80% of buyers’ spending.
- Essentially, the goal is to direct your resources to the suppliers with the highest impact.
Create A Supplier Management Framework
- To foster solid collaborative relationships, firms must design a governance framework, which clearly defines the goals, objectives, and responsibilities of both the suppliers and the buyers.
- Clear communication lines should also be established to ensure all parties are on the same page at all times.
- Moreover, you must develop detailed contracts that clearly outline your expectations about quality parameters, lead times, and payment terms.
- Finally, you should have a risk management plan in place to help tide over unforeseen circumstances, such as supply chain obstructions (like COVID-19) or supplier failures.
Establish KPIs for Monitoring Supplier Performance
- The key to efficacious supplier performance management lies in establishing key performance indicators (KPIs), such as defect rates, order accuracy, cost savings, etc.
- These KPIs can vary per segment and must be continuously monitored to remain cognizant of any supply chain risk (cue-Suez canal crisis).
- You can, additionally, arrange periodic meetings at various executive levels to discuss strategy and goals, track performance, and clear roadblocks.
Be A Good Customer, Pay Your Suppliers on Time
- Supplier relationship management is not exclusively restricted to what suppliers can and should do for you.
- It also entails buyers keeping their end of the bargain by making payments as per the agreed terms.
- Firms must strive to pay on time unless constrained by exigencies—in which case, effectively communicating your limitations is the path to tread.
Leverage Technology for Better SRM
- Tech-driven solutions, like SRM software, aid supplier management by offering a comprehensive overview of suppliers and their risks.
- They can further augment your supply chain and digitize procurement by automating daily operations, simplifying onboarding, and providing extensive inventory management visibility.
Unlock the Potential of Your Supplier Relationships with Moglix
Effective supplier relationship management is indispensable for firms looking to cut costs, improve bottom lines, and add value to their supplier relationships. And Moglix is the perfect go-to collaborator that can help you achieve this and more—as it has done already for an automotive OEM.
Moglix’s supplier consolidation solution assisted the OEM in resolving the difficulties of a fragmented supplier base, bad credit terms, and working capital blockages, resulting in a colossal 2% cost savings! Download the case study to learn the finer details.
Additional resources:
2. https://procurementleaders.com/content/supplier-collaborations-success-research
Demystifying the Procure-to-Pay Cycle: A Quick Guide
Demystifying the Procure-to-Pay Cycle: A Quick Guide
With the rise of digital technologies such as automation, and advanced analytics, procurement operations are undergoing a transformation. In fact, the global software market will be worth $9.5 billion by 2028(1).
A recent study(2) shows that almost half of all procurement activities can be automated using existing technologies. One such process that has the potential to greatly benefit from these advancements is the Procure-to-Pay (P2P) process.
But is the P2P process relevant for your company? If yes, how can it benefit you in the long run? Continue reading as we explore the procure-to-pay process in detail and answer your questions.
Decoding the Procure-to-Pay Process
Procure-to-Pay encompasses activities and tasks, such as sourcing, procurement, invoicing, and payment, which come together to form the P2P cycle.
The P2P process is typically managed by a procurement or purchasing department, designed to ensure that the organization purchases goods and services promptly and cost-effectively while maintaining control over spending.
It starts with the identification of a business need and ends when you make the payment to the supplier. Effective management of the P2P process helps ensure you pay the right amount for the right goods or services at the right time. This improves your relationship with your suppliers and overall financial visibility and control.
The process involves several steps that come together to form the P2P cycle, which we will explain in the next section.
Steps Involved in the Procure-to-Pay Cycle
The P2P cycle steps include requisition and approval, purchase order creation and confirmation, goods and invoice receipt, invoice approval, payment, and close-out. Let’s dive into these steps and see what they actually are.
Get the Go-Ahead
The P2P cycle begins when a need for goods or services is identified. The request for the product is usually identified using an enterprise resource planning (ERP) system or procurement management software. The request is then reviewed and approved by the management.
Seal the Deal
After approval, the procurement team identifies potential suppliers. It evaluates its capabilities based on product quality, delivery times, and prices.
At this stage, the most suitable supplier is selected based on price quotations and the required product specifications. The supplier is usually given confirmation via a confirmation email.
Then, a purchase order (PO) is created and sent to multiple suppliers via either procurement software or an ERP system. A PO is a legal contract between an organization and its supplier, and contains the details of the product required, the delivery date, and the expected price.
Time for Delivery
The goods or services are received from the supplier, and the receiving department confirms that the items match the specifications in the purchase order.
Double Check for Accuracy
The supplier invoices the organizations after the receipt of the goods, including details such as the amount owed and payment terms.
The finance department verifies the invoice against the purchase order and approves it for payment. They may use invoice management software or ERP to ensure the invoices match the PO. If not, the discrepancies are resolved at this stage.
Pay Like a Pro
Finally, the supplier is paid for the products via a payment management system or ERP. The payment process is usually transparent, secure, and compliant with the organization’s financial policies.
At this stage, the procurement team often follows up with the supplier to ensure all aspects of the transaction have been completed. Then the order is closed out.
As the organization’s size increases and the processes become more complex, companies use various tools and software like procurement management software, ERP systems, and invoice management software to automate and streamline the P2P cycle. This makes the P2P process much more efficient and reduces the risk of errors.
Benefits of the P2P Process
The purchase-to-pay process is not intended to speed up payments to vendors. Rather, its goal is to improve the efficiency and financial control of the company. Some benefits of a P2P process cycle are as follows:
- It streamlines the procurement process by connecting the different departments in a firm, making all points of information trackable.
- A P2P process, when implemented using a procurement solution, can help reduce invoice processing costs and improve efficiency.
- The process makes communication between vendors and companies transparent, improving their relationships.
- When suppliers know payment schedules and details, they will be more open to accepting terms that are more beneficial to buyers.
P2P is the Future of Procurement Solutions
The majority of procurement teams are feeling pressured to respond to challenges quickly and effectively. While the complexity of the process can be daunting, there are solutions available that can help organizations streamline and optimize their procurement processes. The P2P process is a critical function that requires careful management and attention to detail, particularly for large enterprises.
For example, the case study of one of India’s largest infra developers shows how a business can scale up its turnover growth by 2x in just a year by implementing an end-to-end P2P solution. By leveraging the right procurement tools and technologies, businesses can not only reduce costs and minimize risk but also achieve significant business outcomes.
So, whether you are using manual or semi-automated tools, it’s worth considering how a comprehensive P2P solution can improve your procurement process and boost your bottom line. Or, you can even partner with companies like Moglix, which specialize in providing end-to-end procurement solutions to businesses.
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