Wed, 28 Mar 2018 00:00:00 GMT
The digital revolution is underway. The question is, are you ready for it?
It is no secret that digitization and rapid improvements in technology are revolutionizing the way companies do business. Digital disruption is affecting companies across all industries and within every department. Procurement is no different.
According to a recent report released by PWC on the digital revolution, we “need to rethink the value added by procurement. As the primary owner of the supplier interface, (procurement) can keep — and even increase — its distinctive value proposition within the company by seizing some of these new opportunities. It can create new business models for itself and move from being a cost center to a profit center.”
So in the age of digital disruption, what does one need for an effective procurement strategy that delivers appropriate quality, cost savings and continuity of supply?
- Extensive supply market knowledge and understanding of the market dynamics
- Access to competitive suppliers
- Product knowledge and related specifications
- Prioritizing commodity strategies based on their efficiency to unlock savings and deliver to the bottom line of the organisation
- Automated technology on procurement transactions to drastically save time and increase productivity, such as:
a. Quote management (RFQ)
b. Vendor onboarding
c. Vendor master data maintenance
d. Reporting from maintained, rich data sets
e. Accessing extensive supplier database information through vendor marketplaces
f. Integrating requisition and sourcing
g. Development of catalogues to reduce unstructured spend
Many organisations find themselves in the business of wasting endless hours on tedious administrative tasks such as research, manually managing vendors and processing RFQ’s. Those caught up in this administrative quicksand will struggle to position procurement as a strategic contribution to the business. But according to Hacket’s 2017 Key Issues Study, “By addressing its own shortcomings in capabilities and resources, procurement can transform as a function. Procurement leaders should ask some hard questions to assure themselves that steps are taken to avoid being left behind.”
Digital strategies, whilst they come at a cost, can remove unnecessary time spent and allow buyers to step up and do what they do best. Additionally, when fully assessing the internal cost implications that come from manning administrative inefficiencies, having poorly kept vendor master data, unnecessary paper and waste – the benefits and associate savings of an appropriate digital strategy will far outweigh the cost.
Ultimately, the Hackett’s study puts it best: “if procurement is to remain relevant, it must embrace the tenets of digital transformation.”
How can SCNet empower your organization’s digital procurement strategy?
SCNet assists companies with implementing the appropriate digital procurement strategy best suited to the organisational needs. With South Africa’s most comprehensive marketplace of suppliers, inclusive of rich validated vendor information and healthy master data, we empower buyers to access quick and efficient supplier research providing the organisation with a very real productivity and cost savings gain.
Furthermore, SCNet has a vast array of digital solutions to ensure a successful procurement strategy in line with today’s technological advancements.
This includes, but is not limited to:
- Advanced supply market research with access to South Africa’s most comprehensive online supplier marketplace;
- Quote management technology to enable organisations to eliminate mundane administrative tasks and drive cost savings;
- Catalogue technology to enable organisations to migrate from unstructured to structured spend, delivering better prices and less margin for error;
- Vendor management solutions to automate the management of master data and associated reporting with over 100points of managed master data;
- Manage key compliance documents such as BBBEE certificates and Tax clearanace certificates;
- Digital vendor onboarding solutions with approval workflow and integration to ERP;
- eAuction solutions to deliver quick savings to the organization.
For more information on how we can help your business develop a digital procurement strategy, contact us on buyers@scnet.co.za
This article has been prepared for SCNet by transparenCI. transparenCI is boutique consulting agency that helps build ethical and transparent brands. They offer full digital content solutions, with design and communications services that range from the creation of corporate identity packages, to websites design and development, to managing social media and blogs, to creating impressive journalistic writing. For more infromation contact hello@transparenci.co.za