Procurement as a function is changing. Traditionally viewed as a department, relying on moderate tech overheads and manual operations the procurement department of the future will look very different to that of the past. The data revolution that has picked up steam in the past few years has delivered an arsenal of new tools into the hands of the modern CPO.
The procurement department has finally joined the digital age and now finds itself firmly planted within the corporate digital transformation journey. The CPO of today must therefore familiarize themselves with the many labor-saving technologies that are at the forefront of the digital shift in procurement and select the best toolset to improve purchasing processes within the organization.
In applying digital transformation tools and technologies within our procurement organization there are some distinct challenges that we must first address. The procurement landscape is complex, comprising huge data tables of products, suppliers, languages, shipping costs, taxes .etc. So, we must deliver a powerful system to support all of this, yet at the same time be mindful that introducing too much complexity will adversely affect internal usage behavior. A careful balance must therefore be met. Integration is also an important factor when deploying any new technology. Backwards compatibility and access to legacy data is crucial to success. Our reliance on Enterprise ERP tools remains firm.
With procurement software being used across the entire organization, internally and externally, by employees of all levels robust security architecture with granular access controls is also an essential consideration. We must also ensure that any new platform can support country wide geo-profiles, providing a consolidated level of data reporting.
Amid a backgrop of global uncertainty, and a mounting focus on ESG, one corporate commandment has become increasingly indisputable: investing in ethical procurement is not only a feel-good opportunity, but it can also mitigate critical business risk.
With increased transparency and obligations around payment times and practices of large businesses, it is critical that eligible entities have a thorough understanding of the requirements of the Payment Times Reporting Scheme (PTRS) to ensure they are meeting the reporting requirements on time!