Mais informações

Relatórios de analistas

Blog

Brochures

Checklist

Casos de sucesso

Datasheets

Aprender

eBooks

Infografias

Notícias

White Paper

Contacto

Seminários on-line

Eventos

Comércio autónomo

ESG

Sobre nós

Plataforma JAGGAER One

Carreiras

Conformidade e Segurança

Casos de sucesso

Support

Partner Marketplace

Torne-se um parceiro

Por indústria

Educação

Fabricação

Energia y Utilidades

Serviços Financeiros

Cuidados de saúde

Ciências da Vida e Farmacêutica

Por indústria

Retalho

CPG

Setor público

Transporte e Logística

Por função

Compras

Finanças

Tecnologia da Informação

Cadeia de fornecimento

Por necessidade

IA em compras

Redução de custos

Aquisição Direta

ESG

Integração com outros sistemas empresariais

Rentabilidade das compras

Otimização de fornecimento

Visibilidade das despesas

Cumprimento dos fornecedores

Aprender

Informes de analistas

Blog

Brochures

Checklist

Casos de éxito

Datasheets

Aprender

eBooks

Infografías

Noticias

White Paper

Contacto

Webinars

Eventos

Comercio Autónomo

ESG

Acerca de

Plataforma JAGGAER One

Carreras

Cumplimiento y seguridad

Historias de éxito

Soporte

Partner Marketplace

Conviértete en partner

Por industria

Educación

Manufacturing

Energía y Utilities

Servicios financieros

Sanidad

Farmacéutico y Ciencias de la vida

Por industria

Retail

Bienes de consumo envasados

Sector Público

Transporte y Logística

Por función

Compras

Finanzas

Tecnologías de la información

Cadena de suministro

Por necesidad

IA en compras

Reducción de costes

Compras directas

Criterios ESG

Integración con otros sistemas empresariales

Rentabilidad de compras

Optimización de compras

Visibilidad del gasto

Compliance de Proveedores

Scopri di più

Analyst Reports

Blog

Brochure

Checklists

I nostri clienti. Storie di successo

Datasheets

Imparare

eBooks

Infographics

News

White Paper

Contattaci

Webinar

Eventi

Autonomous Commerce

ESG

Chi siamo

La piattaforma JAGGAER One

Lavora con noi

Compliance & Security

Storie di successo

Servizio Clienti

Partner Marketplace

Diventa Partner

Per settore

Education

Manufacturing

Energy and Utilities

Financial Services

Healthcare

Life Sciences and Pharmaceuticals

Per settore

Retail

Consumer Packaged Goods (CPG)

Settore pubblico e regolamentato

Trasporti e logistica

Per funzione

Procurement

Finance

IT

Supply Chain

Per necessità

AI nel Procurement

Riduzione dei costi

Direct Procurement

Obiettivi ESG

Integrazione nell'ecosistema aziendale

Procurement Profitability

Sourcing Optimization

Spend Visibility

Supplier Compliance

Success stories

Service client

Erfolgsgeschichten

Kundensupport

Lernen

Analyst Reports

Blog

Broschüren

Checklisten

Kundenerfolgsgeschichten

Datenblätter

Lernen

E-Books

Infografiken

Nachricht

Whitepaper

Verbinden

Webinare

Veranstaltungen

Autonomous Commerce

ESG

Über uns

Die Platform

Karriere

Compliance und Sicherheit

Partner Marketplace

Partner werden

Nach Branche

Bildungswesen

Fertigende Unternehmen

Energie und Versorgung

Finanzdienstleistungen

Gesundheitspflege

Biowissenschaften und Pharmazeutik

Nach Branche

Einzelhandel

Consumer Packaged Goods (CPG)

Öffentlicher Sektor

Transport und Logistik

Nach Rolle

Beschaffung

Finanzen

Informationstechnologie

Lieferkette

Nach Bedarf

KI im Einkauf

Kostenreduzierung

Direkter Einkauf

ESG-Ziel

Integration in die Geschäftssystemlandschaft

Beschaffungsrentabilität

Beschaffungsoptimierung

Ausgabentransparenz

Lieferanten-Compliance

Marketplace des partenaires

Devenir un partenaire

Ressources utiles

Rapports d'analystes

Blog

Brochures

Checklist

Témoignages de nos clients

Datasheets

Learn

eBooks

Infographies

Actualités

Livres blancs

Nous rencontrer

Webinaires

Événements

Commerce autonome

ESG

À propos

La plateforme

Emplois

Conformité et sécurité

Par industrie

Éducation

Fabrication

Énergie et Utilities

Services financiers

Santé

Sciences de la vie et produits pharmaceutiques

Par industrie

Retail

Consumer Packaged Goods (CPG)

Secteur public

Transport et logistique

Par département

Achats

Finance

Informatique

Supply Chain

Par besoin

L'IA dans les achats

Réduction des coûts

Achats directs

Objectif ESG

Intégration dans le paysage des systèmes d'entreprise

Rentabilité des achats

Optimisation du Sourcing

Visibilité des dépenses

Conformité des fournisseurs

Learn

Analyst Reports

Blog

Brochures

Checklists

Customer Success Stories

Datasheets

Learn

eBooks

Infographics

News

White Paper

Connect

Webinars

Events

About

ESG

Autonomous Commerce

JAGGAER One Platform

Careers

Compliance & Security

Success Stories

Customer Support

Partner Marketplace

Become a Partner

By Industry

Education

Manufacturing

Energy and Utilities

Financial Services

Healthcare

Life Sciences and Pharmaceuticals

By Industry

Retail

Consumer Packaged Goods

Public Sector

Transportation and Logistics

By Role

Procurement

Finance

IT

Supply Chain

By Need

AI in Procurement

Cost Reduction

Direct Procurement

ESG Goal

Integration into Business System Landscape

Procurement Profitability

Sourcing Optimization

Spend Visibility

Supplier Compliance

Blog

What’s Next for Digital Procurement?

Innovation

Our survey of the global procurement community and the subsequent report, Digital Transformation in Procurement: How Close Are We? revealed heightened awareness of digital technologies and their potential to transform the procurement function, but little progress over the past two years. It identified a couple of key challenges. We dealt with one of them in the previous article in this series: the need to integrate data across the full spectrum from source-to-pay. As we noted in the report, the digital transformation of procurement involves many processes working in tandem rather than sequentially; data integration would also allow analytics applications to exploit data from one area of the value chain to improve performance and efficiency in another.

The way to do this is to move all of the data onto a unified platform. This is precisely the approach that JAGGAER has adopted with the launch of JAGGAER ONE.

For this to happen, procurement professionals must make a stronger case to the organization’s leadership to demonstrate the value it can deliver. With budgets not growing at an adequate pace, or even shrinking, procurement cannot deliver the value that digital transformation promises.

Procurement will also need to recruit talent with the skills that will be needed to take the next leap forward: professionals who understand data, IT and analytics. This does not necessarily mean “hands-on” knowledge of software development, as the software applications are now available in secure multi-tenant cloud-based solutions. But just as, for example, the marketing function has evolved with the recruitment of quantitative analysts with PhDs in mathematics and statistics, so must procurement.

These skills emphatically do not replace traditional procurement expertise. Rather, they complement it and enable procurement to move up to the next level. So, what else has to happen?

At JAGGAER, we believe more in evolution than in revolution. Organizations have to be pragmatic and build on their existing digital components.

Building a Successful Digitalization Roadmap

1) Get started: Build a strong digital base.

Use procurement technology to streamline and improve core processes. Our survey shows that most procurement teams are there already with many applications: SRM, eSourcing, and eProcurement are in place.

They should also extend this digitalization to supply chain management (supplier portal, webEDI, etc.) You will also need to create a business case based on your vision and the potential improvements – and above all, get your senior stakeholders on board! This is not simply about cost savings here and there (the traditional C-suite view of what procurement does) but driving value and making your organization more agile in an uncertain and rapidly changing world.

2) Establish the basics.

Eliminate manual processes as much as possible or maximize the utilization of the processes that you have already digit(al)ized. Be sure to increase your analytics capabilities! Connect the dots between processes, your teams, and the suppliers to ensure that data flows smoothly. Our survey shows that this is where most organizations want to invest in the near future.

3) Optimize: Leverage new and emerging technologies.

They contribute to further digitalizing processes and to increasing the amount of data available. Depending on your industry sector, these technologies are probably already transforming other aspects of your business: they include the Internet of things, blockchain, robotic process automation. Get additional data from new sources where you need them, e.g. about supply chain or financial risks. Define standard actions based on changed KPIs and turn them into triggers for a process change. Visualize and communicate your category strategies and improvement measures and involve your suppliers in your innovation processes.

4) The “Day of Digitalization”

Now it is time to really ramp up your analytical capabilities! Develop new cognitive analyses to enable efficient data monitoring. This will allow you to gain new and better insights by leveraging smart technology (e.g. machine learning, AI, chatbots, assistants). An example would be using a digital assistant for proactive user support-based on algorithms. Also, you can now start implementing predictive and prescriptive analytics. Predictive analytics tells you what is likely to happen based on what has happened in the past and current data streams. Prescriptive analytics provides you with insights into what course of action to take in current circumstances and/or in various “what-if?” scenarios. This will play a vital role in making organizations more agile and reducing supplier risk.

A common platform is of key importance

It is very difficult to make progress in digitalization and digital transformation unless all processes and data are on a common platform. This provides the foundation for visibility over all data, which is consistent for the execution of all processes, and for end-to-end process continuity, compliance and auditability. It also enables comprehensive supplier lifecycle management, with full visibility over the historical relationship and spend, current performance (purchasing process, contractual compliance, service level performance, quality, invoicing accuracy etc.)

Earlier this year, JAGGAER introduced its own end-to-end platform, JAGGAER ONE: All processes, all data. One platform. This is a technological development that will enable many organizations to make positive strides towards fully digital procurement over the coming years.

What does this mean for procurement practitioners?

All of our research and experience point in the same direction: it will make procurement more strategic. Machine intelligence and digital assistants will be introduced at the operational and tactical end of the spectrum. The sheer volume of tactical decisions made by procurement professionals, which are often very time-consuming, means that the return on investment in digitalizing these decision processes will be high.

JAGGAER has already succeeded in developing artificial intelligence-based tools that eliminate analogue decision-making. For example, an application trialed with a leading German manufacturer is making decisions on whether suppliers will deliver components on time. It has shown an average 95% accuracy, far higher than can normally be achieved by humans alone.

Tomorrow’s buyers will also be supported by more intuitive purchasing experiences, regardless of underlying technology systems already in place, such as voice-activated purchasing experiences for goods and services, supported by natural language search and virtual assistants.

If technology can take control of such tactical decisions, procurement professionals will be able to take charge of more interesting challenges. This is already starting to happen today. For example, especially in the public sector, procurement practitioners are being challenged to make more sophisticated decisions not simply based on price and the technical content of supplier bids, but also the quantifiable and intangible social value benefits of each contract, such as economic and environmental sustainability. Procurement will also have a huge role to play in analyzing supplier portfolios and new technologies to support “build versus buy” decisions.

The bottom line: the procurement function is likely to be smaller in the future, but with the help of digital technology, it will become more securely embedded within the organization’s value stream and will have a far greater influence over its high-level business strategy, growth agenda and competitive advantage.

The application of disruptive technologies to procurement also implies a transformation of the procurement leader’s role from managing costs (although this will still play a part) to enabling innovation, agility, competitiveness and risk reduction. It is time to embrace this digital future and establish your own roadmap for digital transformation!

 

Additional Resources

Maturity Assessment

Take this quick Autonomous Commerce Maturity Assessment now to identify your maturity stage and the next steps to take in your journey.