Let’s take a look at how technology trends in project procurement might impact your projects and your business. As a result of digitisation across the production value chain, an increasing number of manufacturers are taking steps towards a more automated, digital procurement workflow. Additionally, more businesses are looking for ways to adopt purchasing processes that are both risk-resilient and sustainable. Are you keeping up?
Sustainable procurement
Many organisations are trying to incorporate more sustainable practices into the procurement processes they use as a result of government targets and customer pressure. As a result of this, many platforms are now available that allow for sustainable operations and help make carbon accounting easier. These platforms offer those who do not have access to greener alternatives the means for biodegradable packaging, raw materials and emission-free deliveries.
Other platforms assist with carbon emission tracing and compliance within supply chain management. For those companies who are socially responsible, sustainable sourcing and procurement is an important goal.
Companies like Danish startup EIVEE, and UK startup Axiom, have developed platforms that can deal with this.
Artificial intelligence
AI tools can be used to increase accuracy when it comes to procurement tasks. These tools can be used for tendering, auctioning, error detection, contract management and risk management. Both AI and machine learning can also help by automating manual tasks like data extraction from a range of different sources to help with effective budgeting and competitor analysis.
In a similar way natural language processing helps procurement teams when it comes to dynamic bidding, contract and also price negotiations. AI allows buyers and suppliers to make better predictions on market conditions in order to optimise their proposals and gain a strategic edge.
Cloud & mobile procurement
Cloud procurement helps to accelerate e-procurement because it is flexible, affordable, and it reduces time-to-market when compared to legacy systems. Cloud-based procurement results in easier cross-collaboration as a result of the use of an individual interface. Cloud procurement management systems also help to improve customisation and visibility, all of which means that procure-to-pay processes are made more efficient. Cloud computing allows enterprise resource planning (ERP) and mobile-based procurement. Mobile procurement gives enhanced supply chain transparency to sourcing teams so there is no need for expensive software.
Many of the available solutions include all the functionality you might expect from regular procurement management systems in addition to a number of advanced analytical solutions.
Finally, cloud computing and mobile technologies can be integrated with things like AI and big data that you may already be using in order to help with your activity monitoring.
Big data
Big data and analytics help by gathering data from the sourcing chain in order to provide opportunities for both revenue generation and also loss prevention. Both buyers and suppliers can use big data in order to cut down both direct and indirect costs which can assist them in negotiating better contract terms. It can also help to improve strategic procurement planning from source to pay, and aids in risk management.
The high volume of data generated from multiple sources can also help deliver market intelligence that improves compliance management.
There are a number of other advantages to leveraging big data, including predictive analytics which is useful for inventory management, quality assurance, and also procurement modelling.
Blockchain
Procurement requires several stakeholders, and therefore manufacturers can find it difficult to control them whilst also ensuring that operations remain efficient. In order to mitigate this, some companies are leveraging blockchain in order to bring transparency to the value chain. Blockchain securely records transactions across a network of computers in a transparent and verifiable way.
Blockchain solutions can also help to validate product authenticity in order to prevent fraud.
Companies can apply blockchain in order to securely store information regarding the movement of goods, bidding transactions, completion of procedures and more.
Cybersecurity
Digitalising procurement workflows may, of course, increase the risk of data breaches and cyber attacks. With this in mind cybersecurity has an important role to play in securing procurement tools and important business data. For this reason, risk management procedures are now incorporated into ERP systems.
Innovative tools are capable of identifying threats quickly and responding in order to better protect sensitive data. Data encryption, risk assessment and network monitoring are just some of the methodology’s that may be leveraged to improve cyber risk management.
