Recently, the business area that deals with buying things (procurement) has benefited from new technologies. According to a Zipido report 2023, almost 83% [1] of chief procurement officers believe it’s important. They feel it’s time to be super efficient, good at handling risks, and make smart choices to meet ever-changing customer demands. In this regard, in this article, let’s understand the popular trends and future of digital procurement transformation. We will learn the role of AI in making decisions, blockchain in integration, and other such innovative technologies. Let’s see how they help reshape procurement with ease.

Three Focus Areas in Digital Procurement Transformation  

Use AI for Automation 

As per the Harvard research, big companies like Walmart, Tyson Foods, and Koch Industries use a special computer program called AI (Artificial Intelligence) to help them handle their supply chain [2]. They use AI to automate a lot of tasks. It includes buying new items, searching and identifying new suppliers to work with, automatic negotiations, etc. This saves them a lot of time. 

Instead of the old way of keeping track of what they have in their stores, these companies now use a new system that orders more stuff by itself when needed. This helps them ensure they only have a little or little of something. AI can also handle paying for things automatically when they are delivered, which saves time and means fewer people are needed to do these jobs.

Use Blockchain to Improve Supply Chain Visibility

The use of Blockchain in supply chain transformation is also increasing. According to the Industry Trends, Value, Analysis & Forecast Report by Zion Market Research, it may attain a growth of 51.3% [3] between 2022 and 2028. The technology offers a secure and tamper-proof platform to shield sensitive information. Some leading supply chain startups that use Blockchain like this are Yojee, Te-FooD, T-Mining, and SUKU.

This app lets everyone see what’s happening clearly. For example, businesses can write down their deals at different steps in their supply chain in a special kind of record book called a Blockchain ledger. They can also use AI (Artificial Intelligence) and IoT (Internet of Things). Then, the Blockchain can spot problems in getting supplies or sending products to the supply chain. This helps companies act quickly to reduce these risks in advance.

Utilize Big Data for Spend Analysis 

Nearly 97% [4] of companies worldwide are using big data to get useful business information. The technology makes use of your expenditure information to offer useful advice. You can learn to easily predict profits, avoid mistakes, and identify new market opportunities. Many companies are already doing this to find areas of improvement in procurement. This saves companies from tiresome manual processes and paper-based workflows.

End Thoughts

Digital procurement is already a reality. Shifting the focus to supply chain digital transformation is improving the overall procurement efficiency. It also helps cut down manual intervention and save costs in procurement. Adhering to best practices and trends in e-procurement can help companies reap more benefits of digitization. Read our case study on how Moglix enabled automotive OEMs to unlock 2% cost savings in indirect procurement through supplier consolidation. For more information on procurement transformation, contact Moglix Business today!

According to a McKinsey report, nearly 81% [1] of company heads believe the old way of handling essential company purchases needs to be updated. As per a PWC survey, even 86% [2] of the top leaders agree technology is the key to bringing the supply chain to order. In this regard, procurement digitization is the most important step in having a supply chain that is connected, smart, and works well. 

4 Benefits of Digital Procurement  

Automated Workflows

About 69% [3] of boring tasks that have to do with managing things will be done by computers automatically. Technology has changed how businesses buy stuff. It makes jobs that used to be done by hand happen automatically and lets people see how money is being spent immediately. Using software to buy things is also trending. This software works well with big computer systems like SAP and Oracle to pull out information about orders, bills, and payments. You can eliminate the need to enter data by hand to save time. It also makes things more accurate and costs less to process.

Access to Real-time Analytics 

Around 60% [4] of companies worldwide use instant data analysis to help make business choices. They have special dashboards powered by business intelligence tools that show important information about buying things, like how much money is being managed, how much is saved, how well the process works, and how good the suppliers are. Strong analysis of past purchases also helps you make decisions based on data. You can quickly decide where to get things and contracts for the best value. These days, businesses also use machine learning (a smart computer program) to analyze. These machine-learning programs can spot early signs of unusual spending and risks. This way, you can avoid big mistakes easily.

Streamlined Procurement 

A report from Deloitte says that nearly 83% [5] of the people in charge of buying things for companies are using digital ways to make buying easier. E-procurement platforms, which are online systems for buying, bring everything together in one place. They make buying simpler and the same across different parts of the business, and they use special steps to ensure everything is done right and follows the rules. Suppliers and sellers connect to these systems for an easy way to handle orders, bills, and payments all on one platform.

Improved Cycle Time

About 83% [6] of the leaders who handle technology in companies use automation to speed up their processes. This helps in getting rid of paper records to make things faster. New technologies have also changed the way companies buy things. It is now adding values. Companies are also saving money by spending only as per demand using data from technology.

Digitizing the Procurement Function

Digital Category and Service Procurement

Think about seeing and controlling how money is spent in your business using a computer or online tools. This would help you make smart decisions quickly. Digital buying, especially for software, computers, and new types of services, focuses on these new areas. For example, using a safe computer program or app, you can keep digital records of all your buying activities and deals. You can use software like Procurify, Coupa, and SAP Ariba to help you with this.

Innovative Procurement Data Utilization

Almost 80% [7] of companies think their data could be organized better. That’s why big data analytics (analyzing lots of data), predictive modeling (predicting future trends), and AI (Artificial Intelligence) are becoming popular. They help companies make really smart decisions based on lots of data. When companies look closely at a huge amount of data about how much they spend, they get many useful ideas. They can accurately predict future prices, risks in getting supplies, and new market trends. That’s why companies are moving towards using predictive intelligence, which means guessing what will happen in the future based on data. They do this to make plans to avoid problems easily and in advance.

End Thoughts

Procurement digitization can offer significant cost and time benefits. However, companies should be willing to transparently upgrade their digital skills and talents to adopt this new digital culture. At Moglix Solutions, we provide innovative solutions for procurement digitization. Discover how we helped India’s leading tractor manufacturer reimagine the user journey with a seamless digital procurement experience. As a result, the manufacturer saved 85% of staff hours on procurement. To learn more about how we help with the procurement process for procurement transformation, contact Moglix Business today!