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3 Cornerstones That Will Help You Successfully Transition To Digital Procurement

  • 3 Cornerstones That Will Help You Successfully Transition To Digital Procurement

    3 Cornerstones That Will Help You Successfully Transition To Digital Procurement

    Are you planning to digitize your procurement? According to research from the Center for Global Enterprise (CGE), you should be if you want to lower costs and increase revenue. The CGE’s research predicts that digitizing your company’s supply chain could …

    • lower procurement costs by 20 percent
    • reduce supply chain process costs by 50 percent
    • increase revenue by 10 percent

    Sounds like several good reasons to go digital! Digitizing your procurement isn’t always a simple switch, though, and it will disrupt your established system. In order to avoid the most common mistakes that companies make when implementing new e-Procurement software, you’ll need lay a foundation for success. Here are three major points which play a key role in a successful transition to digital procurement.

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    Make Data Collection A Goal

    There’s a huge amount of data involved in procurement. However, traditional systems only gather transaction information and (sometimes) line-item data. That means you’re missing out on data about suppliers, pricing, the market, and several other key factors.

    As you’re developing a plan to transition to digital procurement, make capturing data part of that goal. Data fuels digital procurement, and the more data you can feed the system the more useful it’s going to be. A good digital system will collect and store any data it’s given automatically, then make it available in a format that’s easy for you to use.

    Not only does better data collection help you make a successful transition to digital procurement, but it will also help your company in the long-run. If you can leverage the data you’re collecting, it’ll help your company make informed business decisions.

    Search For The Right Kind of Digitization

    Not all digital procurement programs will work equally well for your organization. It’s very important to find one that offers all the features you need along with a user-friendly interface. There’s no point in digitizing if the system you end up with is something no one wants to use.

    If the procurement system isn’t easy to use it won’t take long for employees to find a way around it. If that happens, you miss out on all the advantages related to digitizing. Two of the most important user-friendly features to look for are Punch-Outs and Item Catalogs. Item Catalogs make it easy for employees to find and purchase pre-approved item and Punch-Outs make shopping within your system just as easy as shopping on the suppliers’ websites. When employees place an order through the Punch-Out website, the system generates purchase orders automatically.

    You’ll also want a system that’s easy to customize. Digitization gives you a golden opportunity to evaluate your procurement policies and controls. And with a top-quality software system, you can incorporate those policies and controls into the system itself to ensure compliance and improve oversight. NextProcess is a system that includes all these features, and more.

    Remember The Value Of People

    Successful digitization isn’t just about data and systems. It’s also about people. Digital procurement isn’t meant to replace human employees. Rather, it frees up employees from time-consuming manual tasks and provides the tools they need to do their jobs better. Also, keep in mind that many of the human tasks required after you digitize procurement require specialized skills.

    Whether you’re digitizing procurement for a small business or setting one up for a large organization, the team working with this new procurement software is a vital asset to your company. You need people who understand how to interpret the data your new system collects. You need category/business experts to advise on when and how to apply what you learn from data. And you need professionals who can work with the technology to add value and create a better experience for stakeholders.

    Don’t be one of the many companies that recognize the value of digital procurement, but can’t implement it successfully. When you go with NextProcess, you’ll get all the benefits of digital procurement along with a partner that’s committed to helping you through the entire implementation process to successfully digitize your company’s procurement. Contact us today to get started.

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