It’s easy for procurement teams to simply record what is seen as the ‘most important’ aspects of the procurement process. But when it comes to analysis of specific issues, particularly those that escalate to legal proceedings, a secure, end-to-end process can provide the vital information which resolves a situation quickly or secures a win. The simplest way to ensure an audit trail is to use entirely online processes. Any offline aspects of a process are easily lost and insecure as they’re not managed and rely on users accurately recording all activity. Ensuring every item is recorded; even minor amends to documents or changes to contact details is essential.
First in mind should be risk management. It is essential to Incorporate risk management into supply processes from the very start. Assessing the risk of each provider, understanding their supply chain and putting plans in place in case things should go wrong is important to secure the supply chain. Without addressing risk, procurement teams are opening themselves up to what can potentially result in a significant impact on their organisation.
Technology can help overcome some of the problems of communication caused by globalization. Cloud based eProcurement
systems can help to enable companies to set up standard vocabularies for business processes. As data is updated in real time, reporting can be retrieved from anywhere in the world. This enables global collaboration between individuals and suppliers. See our ASL case study here for an example.
The future of supply chain is no more limited to ensuring reduced price and timely delivery of goods but also about being mindful of an increasingly complex landscape dominated by legal issues, sustainability concerns, and regulatory and ethical considerations that affect not only a company’s revenue but also brand standing. As the buzz continues to grow about Big Data and AI, procurement officers need to focus on providing good data. Access to large volumes of data does not help a business. Access to good reporting and analysis tools does. Good business intelligence is crucial to help procurement understand how and why it is being successful and where it is failing.
On this note, the decade ahead calls for procurement leaders or practitioners who are prepared to deliver beyond the expected.
We present to you, “Top 10 Procurement Service Companies - 2021.”
