Companies are spending a fortune in digitizing various process which would facilitate smarter and faster decision across all level of departments, today CPO & CIO's are expecting. Buyers to engage with a broader and deeper set of strategic responsibilities right from sourcing to Buying process, as Business today are faced with unprecedented change and disruption threatening their future growth prospects. Amid continuous disruption, which is absolute and inevitable, Buyers must disrupt their existing process and learn to adapt new digital tools and stay in front of change.
Disruption is Forcing Procurement teams to be leaner and smarter
The driving force in procurement can be described by the single word "Digitization," not only implementing procure to pay but efficiently improving the overall sourcing process as well, which is at the renaissance of the procurement process, needs to change. Buyers are no longer willing to accept a cumbersome manual sourcing process, which is in-efficient. Procurement teams need to evolve from ERP tools and start using additional tools that enable seamless digital experience for Buyer and Supplier. CPOs are the ones who would be leading the change into the future with a focus on innovation and decentralized operating model while centralizing sourcing and procurement knowledge.
Supplier Centric Sourcing improves procurement process
Profitable Buying happens when an organization has diversified set of supplier base, today's supplier interaction is mainly tactical over email and lacks any real data-driven insights, need to deploy tools which drives supplier performance and improved relationships to a new level while fostering innovation and mitigating risk. Digital eSourcing software tools have reduced initial supplier visit and meetings, digital RFI & RFQ created online allows suppliers to remotely submit quote or engage in a conversation online which can be tracked for compliance, new suppliers can be discovered with minimum time, an organization can benefit from any new supplier that brings new value in terms of pricing or delivery.
Why Digital Sourcing Platform is important than ever
CPOs & CIOs recognize that digital technology and automation will continue to improve all aspects of the Sourcing operation model, driving overall efficiency and effectiveness. It's time new eSourcing platforms must replace all manual effort-intensive and general administrative tasks, which enables self-service functionality, thus allowing Buyers to focus on higher value-added activities that not only focuses on suppliers and end customers.
Cloud base eSourcing technology will serve as the link between data and automation to enable integrated processes and create meaningful data insights that will enable Buyers to make better, profitable, and well-informed decisions. In the procurement function of the future, intelligent eSourcing tools will work as a virtual assistant to Buyers and will support everyday activities. As Buyers & Suppliers engage online during sourcing events, key data points will be generated and will be used to enrich data analytics. Buyers will be able to use various new types of eAuction for direct and indirect sourcing, and information will be available in real-time across all levels, which will improve transparency and increase profitability.
So finally, the designation "Buyers" remains, but they will undertake smarter and dynamic roles in the procurement process rather than remaining passive. Buyers will depend much on Technology tools, which will enable them to make data-driven decisions, thus making their job more enjoyable.