In order to understand the agility of procurement in the era of digitalization one must know the concept of procurement first. Procurement is the tedious process of finding products or services from external sources which leads to a competitive buying and bidding processes. A well-structured procurement practice ensures that the buyer receives the desired product or service at best possible price.
Recent research studies have shown that the future of digital procurement is responsible in maintaining in various supply chain managers but does not have the appropriate tools to get started. Most of the established firms have the same opinion saying that digital revolution has overlooked procurement clearly. Now to contradict this statement some are saying that addition of artificial intelligence and machine learning in digital procurement have paved the way for series of benefits. Some of the significant benefits include the following:
• Opening of new channels for engage more suppliers
• Improved decision making during buying
• Providing smart automation to drive out new and improved efficiencies
Furthermore as more and more industries become digitized, new demands are being met on constant basis. 3PL in North America is a case in point. Though digital procurement has increased the efficiency of the company but it has also opened the way for scammers and cybercriminals to hack into the system and steal private and confidential information, thus putting a menace to the business.
In modern times companies are all going digital in order to transform their business for betterment. This includes providing impeccable service in terms of sales, marketing and service. Some researchers say that procurement in modern times hasn’t had same kind of command on investment as it had before.
Several companies have implemented e-procurement systems but it is same as replicating the tiring procurement process with new software. In order to create revolution, companies must convert themselves as digital procurement organizations that have a holistic outlook towards the entire function.
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Author – Aval Sethi, Founder