As told by Procurement Analyst Karen Moorhouse: One element where technology has really changed the game for procurement is the ability to centralize real data across a network, even when the function is decentralized and the systems are disparate. Drying up of cost-savings - The successful employment of strategic sourcing initiatives, since the early 2000’s, has dried up cost savings for procurement professionals. New technology provides opportunities for procurement to boost market coordination, introduce new suppliers, enable better compliance, increase capacity and speed, minimize risk and increase trust by removing human error. There is consensus that systems are generating better data, supporting improved conversations and performance management. 5. Invaluable to their companies, procurement professionals possess the skills required to balance costs, manage supplier relationships, fulfill social responsibility and deliver massive returns. Technology has changed the way businesses operate. Since you’ll be doing most of your work online, e-procurement will help to reduce the transaction time significantly. However, to fully realize its advantages, you need to have the proper systems and processes in place. No longer is it the responsibility of a single organization. We also use third-party cookies that help us analyze and understand how you use this website. This results in increased productivity. E-procurement allows you to track transactions via a single source. Technological integration has created many positives for procurement, but it’s also created challenges. The result of this centralized transactions tracking is full reporting on payments made, orders processed, items purchased and requisitions. Fortunately, managed IT service… Read more », Copyright © 2021 Percento Technologies International. The industry is changing and technology has allowed for procurement to quietly keep up with the rest of the business world and society in its success. The use of internet in procurement has given birth to electronic catalogues. SAP Ariba, the company who has spearheaded the development of the technology, defines the PunchOut catalog as a system that allows for requisitioning of goods within the business’s own procurement software. The company was founded in 1999 with the purpose of providing a Business Technology | Anytime | Anywhere for organizations in need of Managed IT Services, Professional IT Consulting, and Infrastructure Projects. This view towards procurement changed in the 1970’s, the oil crisis of this decade led to widespread economic and industrial challenges. Coming back to procurement, technology has completely changed the buyer-supplier relationship. Privacy Policy ⋅ Sitemap. Procurement or has to connect to the internal eProcurement tool to perform a search. Such digital procurement platforms provide value that in-house solutions cant match. First and most obviously, digital technologies usually change how companies buy. Procurement is not restricted to only sending out catalogues and negotiating a price, but it now has to deal with global suppliers. This website uses cookies to improve your experience while you navigate through the website. Input your search keywords and press Enter. These cookies do not store any personal information. Sophia Chapman is a guest contributor from Portfolio Procurement, expert recruiters in the compensation, benefit and reward sector. covering the intersection of faith, culture, life, and social good and. Despite the greater insight into decision-making, a study of US procurement professionals still revealed accurate forecasting to be the biggest challenge, something that’s possibly down to the rise in budget responsibilities over the last ten years. Good post. 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