DM Jan-Feb 2024
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APPLICATION FOCUS: PROCUREMENT Dm<br />
"IT'S BEEN ESTIMATED THAT BUYERS SPEND AS MUCH AS 31% OF THEIR TIME ON MANUAL PROCESSES,<br />
REPRESENTING A HUGE AMOUNT OF TIME THAT PURCHASERS COULD SPEND ON MORE PRODUCTIVE TASKS.<br />
MOVING THE PROCESS TO A DIGITAL PLATFORM CAN REDUCE THESE TIME-CONSUMING TASKS TO A HANDFUL<br />
OF CLICKS. WITH EFFICIENT AUTOMATION IN PLACE, IT MAY NOT EVEN REQUIRE THAT. DOCUMENTS CAN BE<br />
DISPATCHED TO SUPPLIERS AUTOMATICALLY, AND APPROVALS SENT BACK TO THE RELEVANT PARTIES WITHOUT<br />
THE NEED FOR MAKING PHONE CALLS OR SENDING EMAILS."<br />
3. Eliminate errors<br />
Even the most highly skilled purchasing<br />
administrators aren't perfect and<br />
manually entered data can sometimes<br />
come with typos, missing information,<br />
or any number of minor mistakes.<br />
Researchers<br />
(www.datasciencecentral.com/automatio<br />
n-eliminates-expensive-data-entry-errors/)<br />
estimate that data entry errors in<br />
procurement and the supply chain cost<br />
businesses billions of dollars every year.<br />
A move to a digital procurement platform<br />
can reduce these errors, however.<br />
Documents can be automatically<br />
populated with the correct figures and<br />
information, without the risk of an errant<br />
keyboard stroke causing unnecessary<br />
delays. Digital procurement systems<br />
ensure that the system data is consistent<br />
and that all the necessary information is<br />
where it needs to be.<br />
4. Surface data<br />
The procurement process generates a<br />
vast amount of data, ranging from<br />
spending figures to the time spent on<br />
negotiation and delivery. This data is an<br />
invaluable tool in an organisation's efforts<br />
to find savings, but a paper procurement<br />
process can mean that the information is<br />
difficult to access. Research company IHS<br />
Markit has found that 63% of supplychain<br />
professionals "lack the necessary<br />
data" to make cost-saving decisions.<br />
However, when procurement is moved<br />
to a digital system, all this information is<br />
only ever a handful of clicks away.<br />
Everything from spending trends to order<br />
histories can be surfaced without the<br />
need for data entry or searching through<br />
old spreadsheets. Reports that once<br />
needed to be manually generated can be<br />
provided automatically.<br />
Easy access to this information via<br />
intuitive and interactive user dashboards<br />
can help organisations make sense of<br />
their spending and plan the most<br />
efficient way to purchase.<br />
5. Keep suppliers informed<br />
Maintaining positive relationships with<br />
suppliers is a key part of the procurement<br />
process, and this involves keeping them<br />
in the loop at all times. Suppliers want to<br />
know where your latest purchase stands<br />
in the approvals process, whether to<br />
expect more orders and when they're<br />
going to be paid.<br />
According to a survey carried out by<br />
supplier experience company HCIX, the<br />
top issue standing between suppliers and<br />
organisations is the time needed to<br />
resolve queries. Traditionally, this involves<br />
multiple phone calls and voicemails<br />
between suppliers and buyers.<br />
Organisations with a digital procurement<br />
process can automatically share<br />
information with their suppliers to reduce<br />
the strain and increase visibility into the<br />
process. Both supplier and procurer can<br />
easily stay up to date on the purchase<br />
status, and easily share information in the<br />
event of delays or other potential pitfalls.<br />
DIGITISATION: THE RIGHT MOVE<br />
Efficiency and accuracy lie at the heart of<br />
the procurement process, and both are<br />
aided by a move towards digitisation<br />
and automation.<br />
Embracing the ability to automate<br />
common procedures allows the<br />
procurement team to spend more time<br />
innovating and finding fresh ways to<br />
create value for the organisation, which is<br />
made easier by the ability to quickly<br />
access spending data.<br />
More info: www.crownrms.com/uk/<br />
www.document-manager.com<br />
<strong>Jan</strong>uary/<strong>Feb</strong>ruary <strong>2024</strong><br />
@<strong>DM</strong>MagAndAwards<br />
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