According to Gartner’s latest predictions, in just four short years, half of all procurement organizations will have near-real-time procurement analytics – will yours be one of them?
While we can argue the probability of this claim (along with the debatable prediction that we will see a large rise in voice-command PO processes), there is certainly no denying that the way companies do business is changing. Between hyper-automation, machine learning, and a renewed focus on user-centric design, we can now access and influence limitless channels in a matter of seconds. With this massive influx of new data and opportunities for connection, sourcing and procurement must adapt to the rapidly evolving market or risk falling behind.
Like Sales with Customer Relationship Management (CRM) platforms or Human Resources with Human Capital Management (HCM) solutions, modern sourcing organizations need technologies that will empower them with visibility into their processes, proactively manage projects and mitigate risks, and generate actionable insights based on real-time data.
Why Digital Transformation is Mission-Critical for Your Business
Implementing new technology can seem daunting, but with an effective change management strategy, you’ll find that the benefits far outweigh any costs. If you’re still on the fence about adopting modern solutions, here are five benefits your organization is missing out on by continuing with its current processes.
1. Radical Transparency
- With modern sourcing solutions, you can easily track the status of events, store your contracts, and manage your suppliers while gathering key insights and analytics from your sourcing data. Say “goodbye” to disparate email chains, spreadsheets, and legacy ERP systems and “hello” to full visibility into all of your procurement data in a single source of truth.
2. Enterprise-Wide Accountability
- With increased transparency comes increased accountability. Capabilities like automated approval workflows, status and obligations tracking, and deadline reminders keep your sourcing processes running smoothly and help you identify potential bottlenecks in your organization.
3. Real-Time Collaboration
- Give your team a platform to communicate not only with one another, but across departments, with stakeholders, and with suppliers. Use real-time chat functions and tagging capabilities to keep your key partners constantly up to date.
4. Constant Iteration
- Analyze your procurement data and discover which sourcing processes are working and which need to be changed. Use trackable metrics to understand and continuously improve your workflows for maximum business impact.
5. Streamlined Processes
- Automate previously cumbersome tasks like data entry, form filling, and even the contract approval process. The right technology can help give you and your team valuable time to focus on what really matters: people, not paperwork.
What’s next for your sourcing org?
According to the Harvard Business Review, 52% of Fortune 500 companies in 2000 have since gone bankrupt or dropped off the list. Why have companies like Blockbuster, Toys R Us, Pets.com, and others disappeared? They missed critical market shifts and could not move quickly enough to adapt to new modes of business.
You may have learned about Charles Darwin’s theory of Natural Selection in your grade school science class. The concept is no less applicable to the lifecycle of the enterprise: only the fittest survive. Clearly, sourcing can no longer afford to stick to the status quo. Over the past two decades, companies have either thrived or crumbled based on their ability to adapt to the changing technological landscape. How will your organization respond?
For deeper insights into how sourcing’s function in the business is changing, take a look at Gartner’s predictions for 2020 and beyond to find out why it’s imperative that you invest in tools that will help you and your team drive success far into the future.
Chris Crane is Co-Founder, Product at Scout RFP, a Workday company. As a technology executive with a passion for product, Chris leads product direction and has been instrumental in building Scout’s intuitive platform from the ground up. Prior to co-founding Scout, Chris learned the value of easy to use interfaces redesigning machinery and processes to improve efficiency at ERICO’s Aberdeen plant and earned a degree in mechanical engineering at Case Western Reserve University.