Disruptive Technologies and the Change it’s bringing with it
Advances in technology are not new. Digital procurement has been the talk of the town in the industry. The fact that it has benefited and fundamentally transformed the business supply chain is proof enough.
As a result, companies should be ready for such disruptions in every aspect of procurement. The influence of disruptions in procurement can be seen in – better supplier relationships and effective management, strategic sourcing and better spend measurability.
In the digital space, the internet is all about disruptive technologies such as Artificial Intelligence (AI), Blockchain and The Internet of Things (IoT). These technologies can potentially change the way procurement works.
There are changes which are already happening in the procurement processes. In today’s time, there is heavy weightage given to data. We are in a data-driven world and while B2B organizations have been slower than B2C in adapting these changes, the change is surely coming.
Why does procurement need this?
We have mentioned several times that adapting the eProcurement ways have benefited organizations in more than one way. The procurement industry today has slowly moved towards digital procurement, in other words – eProcurement.
The benefits of this include –
- Transparency in spend
- Contract Management
- Supplier Relationship Management (SRM)
- Spend Analytics and Reporting
Competitive advantage is something every organization is looking to gain. Digitalization can give the organization an edge over its competitors. The use of AI and Machine Learning can help the company deduce insights which would otherwise be difficult to achieve. This in turn will give the organization a competitive edge.
Many organizations have embraced the digitalization path and should now try to adapt this as a growth strategy. The way this will help companies is that – supply chains will generate better value which could drive overall business transformation. It is essential that these companies realize the full potential of these technologies.
How will procurement benefit from digitalization?
While we discussed the reasons why procurement needs this, it is necessary that an organization understands how exactly this change will benefit them.
Digitalization has the potential to free up time and money. What this essentially does is that it gives an opportunity to procurement teams to concentrate on more important tasks. The teams can, hence, divert their expertise towards tasks such as improving supplier relationships, strategic and sustainable sourcing, coming up with innovative ways to efficiently handle the purchasing processes, etc.
These technologies further boost operational as well as cost efficiencies by automating repetitive tasks in the purchasing cycles. Disruptive technologies in procurement can help in achieving efficient business insights in minimum time spans. AI-powered platforms can take procurement in an organization to the next level.
Adapting these technologies will pace up the procurement processes and impact the bottom line positively. The processes have to be monitored closely after these technologies have been implemented in an organization. The technologies, if applied strategically, will have a tremendous impact on bottom-line profits and the return on investment will be significantly visible.
How can Eyvo help?
In one of our blogs, we have spoken about how we at Eyvo are up to date with the recent technologies and value the changes happening in our industry. We have already started taking steps towards Machine Learning which we are keen on improving further.
We understand our customers’ needs and strive to give them the best experience we can in terms of technology and service. While we understand that the change is long due, we are surely ready to give our customers’ the best experience.