The purchasing department is strategically essential for business. As such, the sector should be prepared to receive investments to modernize and embark on digital transformation, right? Unfortunately, the reality in some companies is different, and purchasing professionals continue to work with outdated processes and without access to insights that can help the sector offer more value to the business.
One of the challenges faced in making changes happen is data integration. Although many companies are generating and capturing data, integration is still weak and often done manually – basically, manually extracting information from one system and putting it into another.
Automation is necessary
In this case, automating the process means that one solution automatically sends the desired information to another solution. A fully integrated purchasing department means that all processes are automated and integrate the information needed for other steps in the purchasing process to be carried out, including the use of prescriptive and predictive analytics. Data gathered in this way can also be used not only to improve processes, but also to optimize decisions.
Digitization is the first step
Digitization is basically the conversion of analog information into digital information. But digitization alone is not enough. This data needs to be stored in a single location so that it can be easily accessed by those who need it. For example, the purchasing process must be integrated with the accounts payable process, even if they are from different sectors.
Otherwise, this disconnection causes negative impacts when the business strategy and the execution of these processes are not aligned and integrated, that is, the information exists, but is not known by everyone. Only when the data created by these processes is integrated and new technologies are applied to explore this information is it possible to talk about digital transformation.
On the path to digital transformation
Companies that have not yet implemented a digital transformation process in their business face some challenges:
- Data-related obstacles need to be removed by integrating information throughout the entire purchasing flow, from negotiation to payment. Digital transformation in the purchasing sector involves several processes that need to work together rather than sequentially, as well as analyses that explore the entire value chain to improve the sector’s performance and efficiency. The solution is to migrate all this data to a unified platform.
- For this to happen, the sector needs to present strong arguments for the investment in digital transformation to be approved.
- The purchasing sector must also recruit talent with the necessary skills to operate in this new reality. These are professionals who understand purchasing, data, IT and analysis, skills that complement the traditional purchasing experience.
The purchasing sector generates a huge amount of data, but not all companies know how to use this information to grow their business. In recent years, technology has made it possible to use this material to improve processes and provide relevant information for businesses.
The COSTDRIVERS platform helps your company understand which negotiations are aligned with the market average, make projections and improve performance. Contact us and find out how we can help your company.
