FUTURE-OF-PROCUREMENT

The central theme of all facets of business development and transformation is automation, and supply chain is no different in this aspect. Technology has been swift to infiltrate the procure to pay cycle and now the trend is to bring about collaboration through automation of intercompany and ‘company to customer’ relationship. It is imperative that considerable investment is made in automating the complete supply chain to maximise shareholder value. This measure not only streamlines material flow, but also plays an essential role in wiring the enterprise.

 

Companies are often required to manage complex interactions with its ecosystem of diverse stakeholders. The lack of an infrastructure that facilitates centralized interaction will result in miscommunication and loss of important information. They also deal with suppliers and vendors on a daily basis, which in turn raises the need for extensive documentation. Insufficient information and materials will ultimately lead to delay in completion of processes when required. This delay in the execution of a single process can slow down the complete chain as the mishap creates a ripple effect, delaying all the subsequent processes. To err is human. This saying is particularly true when it comes to manual entry of critical information. Erroneous data will lead to miscalculations and disrupt positioning for the future.

 

Once processes are automated, customers will be able to realise a simplified platform for seamless integration between vendors and suppliers, curtailed inventory transaction turnaround time and transparency in the level of inventory at the vendor’s end. Optimized inventory levels lead to reduced maintenance costs. An automated procure to pay solution is built keeping in mind the implementation of the customer’s procurement policy. The entire processes from source to pay are digitized with a view to reduce operational cost and improve the efficiency of the procurement function.

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