Procurement is gradually being seen as the company’s powerhouse of information.
Now, it can be leveraged.
Partnering up with The University of Mannheim for its recent whitepaper, Mercanis looks at what’s on procurement’s radar, as it continues to navigate disruption and digital shifts.
According to the findings, innovative behaviour in mid-sized companies is difficult to come by, and so, should be promoted as part of company culture. It appears many employees continue to work manually, leaving an empty seat for digital transformation to make its mark and bring others on its journey.
Previous studies covering the procurement space have listed the extensive benefits of going digital, which include automating manual tasks, increasing efficiency and generating cost savings.
So, what needs to be done to push back on the days of manual labour?
New procurement strategies and shifts
As they continue to navigate disruption, procurement leaders are constantly evolving and improving strategies. This means thinking in terms of long-term agility and resilience, by increasing supplier diversity to achieve a more secure supply chain.
‘Getting procurement more involved in the day-to-day business all throughout the company could be highly beneficial, as the procurement department could finally leverage its position as the powerhouse of information.’ Mercanis report
For too long, external issues have distracted CPOs from focusing on seeking greater efficiency, resilience and cost savings in the long run. For many, only now are they realising the need to encourage a shift in employees’ mindsets, towards innovation and digital transformation.
So, what is procurement looking for?
- To source more locally
- To implement more secure supply chains
- To invest in new technologies
- To establish smoother sourcing processes
What next?
Supplier diversity can be a blessing and curse.
It’s great to seek new suppliers versus incumbents. However, procurement workloads then increase, as more suppliers are added. So, to reduce an ‘incoming flood of manual labor’, businesses are turning to automation and digitalisation to reduce stress, workloads and cut costs, thus maximising time saved, so that it can be focused on strategic endeavours.
What’s left to be improved? Leaders and their teams require:
- Quality data
- Innovation cemented within company culture
- Adjusting to regulatory requirements
- Working with restricted budgets
Key takeaways
- Gain employee acceptance and establish a cultural shift towards digitalisation
- Check the quality of your data
- Choose a sufficient digital solution
- Diversify your supplier base
- Digital transformation: it’s a continuous process
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