Supply Chain Partner

Digital Procurement Explained

The pace of change worldwide is accelerating at an unprecedented rate. Where supplier agreements and some automation was once sufficient to ensure that your procurement processes served the organization, you now need to stay abreast with the digital revolution to remain ahead of your competitors. Over the last five decades, the nature of procurement has changed drastically. As enterprise resource planning has developed, so has the accepted way of managing the procurement function. From manual processes to eprocurement, your business has seen it all. But now it’s time to take the next step: digital procurement.

What Is Digital Procurement?

In line with the rest of the move towards digital transformation, digital procurement is the extended use of data and analytics to enable established procurement processes in order to become more effective and automated. The incorporation of artificial intelligence and machine learning into your procurement processes can better anticipate risk and disruption, allowing your supply chain to become more resilient as your risk management makes the jump from reactive to preemptive. Digitizing your procurement systems can transform procurement into the value generator of your entire organization, as external agents are able to create new business models and proposals with the increased efficiency and automation afforded by your transformation. With all these advantages on offer, it’s easy to see why finding a digital solution for procurement is in the best interests of your organization.

What Is The Difference Between Digital Procurement and Eprocurement?

Essentially, these are two steps of the evolutionary ladder that procurement has scaled since the 1980s. Eprocurement focused on transferring much of the procurement process to computers. Creating, processing, and storing procurement data. This made supplier relationship management much more efficient, as eprocurement solutions afforded greater transparency and oversight of a business’s procurement and supplier processes. However, the focus of eprocurement, like traditional procurement, was on cost management.

Digital procurement embraces a broader transformation, implementing, integrating, and utilizing digital systems in order to effect changes in the way in which an organization conducts business. This shift in focus incorporates AI to revolutionize the systems, instead of simply digitizing the existing process. It not only captures data, but uses it to supercharge your systems and propel you to the next level.

Digital Solutions For Procurement

As with many aspects of ERP software and the digitalization of your organization, there are multiple digital procurement solutions on offer. These solutions offer various strengths, and cover different aspects of the process. For comprehensive, involved systems, one need only look to traditional giants like Coupa, SAP, Ivalua or Jaggaer.

If you’re after leaner, more tailored options, then solutions such as e-Procurement and WebReq provide a full digital procurement solution. At an even more granular level, Precoro and Pipefy excel at handling purchasing and requisition orders, while Fraxion, Expeni, and Promena can make your supplier relationship management a breeze.

Whichever solution is the right fit for your organization, we at SCP can guide you every step of the way. We possess the knowledge in order to be able to advise you on exactly which solution would be optimal for your organization, and the expertise and experience to implement and integrate the solution seamlessly into your existing processes and systems.