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Why Integrating Digitalisation and Automation in Procurement is Vital

by | February 2, 2023

Integrating digitalisation and automation in procurement is vital for businesses to stay competitive in today’s fast-paced, technology-driven market. Procurement, the process of obtaining goods and services, is a critical aspect of any organisation, and digitalisation and automation can improve efficiency, reduce costs and improve decision-making. As mentioned in our first article this year, digitalisation will play a rather important role in procurement and in this article will explore why integrating digitalisation and automation in procurement is essential for organisations.

Let’s start with the classic benefits of digitalisation:

  1. Improved Efficiency: Automating procurement processes can significantly improve efficiency by reducing manual tasks, reducing errors, and speeding up processes. This results in cost savings and improved responsiveness to customer needs.
  2. Increased Transparency: Digitalisation and automation provide greater transparency in procurement processes, making it easier to track progress, monitor spending, and identify improvement areas.
  3. Better Data Management: By integrating digital tools and automation, organisations can capture, store and manage procurement data more effectively, leading to improved decision-making and better supplier management.
  4. Enhanced Collaboration: Digitalisation and automation make it easier for procurement teams to collaborate with suppliers and other stakeholders, improving communication and reducing the risk of errors.
  5. Reduced Costs: Automating procurement processes can significantly reduce costs by reducing manual labour, reducing errors, and increasing efficiency. This can free up resources for other areas of the business.
  6. Better Supplier Management: Digital procurement systems can enable organizations to manage suppliers more effectively, improving supplier performance and reducing supply chain risks.
  7. Improved Collaboration: Digitalisation can enhance collaboration between procurement and other departments, enabling organizations to work more effectively and efficiently

The importance of procurement digitalisation in today’s economic environment can be seen through the following benefits:

  1. Risk Mitigation: Digitalisation in procurement can help mitigate risks by providing real-time visibility into the supply chain, reducing the likelihood of supply chain disruptions, and allowing procurement teams to make informed decisions quickly. With digitised procurement functions, businesses can access supplier information, such as financial stability and delivery history, to make informed decisions and manage risks proactively.
  2. Overcoming Supply Chain Disruptions: Digitalisation in procurement can help businesses overcome supply chain disruptions by providing real-time visibility into the supply chain and enabling procurement teams to quickly identify and respond to disruptions. With digital procurement systems, businesses can quickly find alternative suppliers or adjust orders in response to disruptions, reducing the impact on operations and ensuring that customers are still served.
  3. Monitoring Sustainability Goals: Digitalisation in procurement can help businesses monitor their sustainability goals by providing real-time data and insights into the supply chain. With digital procurement systems, businesses can access data on suppliers’ sustainability practices, monitor carbon emissions, and track the use of sustainable materials. This information can help businesses make informed decisions about which suppliers to work with, ensuring that their sustainability goals are met.

In conclusion, integrating digitalisation and automation in procurement is essential for organisations to stay competitive and meet the demands of today’s market. By improving efficiency, increasing transparency, better data management, enhancing collaboration, and reducing costs, organisations can reap the benefits of digitalisation and automation in procurement.

If you want to learn more about how to incorporate digitalisation into your procurement process and how procurement technology can help you achieve these goals reach out to us at [email protected]