Although the term has already become a buzzword, digital transformation should not be seen as a passing fad, a simple trend that may or may not “catch on” – like so many other technological trends that have disappeared over time.
Because it involves a strategy that implies the adoption of innovative technologies, with a focus on improving processes, analyses and insights aimed at business, digitalization is a path of no return, and one that creates increasingly higher expectations in companies, users and customers.
Therefore, Purchasing professionals and supply chain executives need to start analyzing whether their legacy operations support the implementation of new technologies or whether they need to migrate to the cloud to incorporate Artificial Intelligence (AI), Internet of Things (IoT), machine learning, blockchain and analytics solutions.
Fundamental transformation
As the Purchasing department needs to deal with a more complex supply chain and has the need to reevaluate its resources, investing in Purchasing 4.0 is a natural path.
This way, Purchasing professionals have access to tools that allow them to explore advanced forecasting resources and access insights that allow them to make more assertive decisions based on data, which can be internal or external.
AI or robotic process automation (RPA) are typically among the technologies cited to increase the efficiency of procurement processes. They can be used to automate repetitive manual tasks and free up professionals to focus on other tasks that add more value to the business, in addition to reducing errors.
Transforming the Purchasing Department
The GEP consultancy, specialized in the supply chain, highlighted five digital purchasing trends that are already available to companies of all sizes:
- The “digital first” trend involves investing in innovative technologies such as AI, cloud solutions, predictive analytics, cognitive computing and natural language processing (NLP) to make processes more efficient and eliminate unnecessary ones.
- The cloud is increasingly accessible and it is possible to find good cloud-based purchasing platforms that incorporate tools for order management, stock integration, inventory, forecasting and stock management, among other features.
- Digital transformation is constant, and cloud solutions make it easier for the Purchasing department to implement strategies that improve the Purchasing function, with the adoption of new functionalities and resources quickly.
- Data analysis is of great importance for digitalization strategies. Machine learning and AI help recognize spending behavior patterns and predict budget trends. Data can be used to analyze contracts, compare prices, evaluate suppliers, etc.
- RPA can increase efficiency in supply chain management by automating repetitive processes, reducing costs and errors while accelerating processes.
With supply chains becoming increasingly complex and extensive, procurement departments need to incorporate new technologies to stay relevant. Of course, this isn’t something that happens overnight. But the sooner the transformation begins, the sooner the company will realize its benefits.
To do this, your company needs to have reliable information from a variety of sources. The COSTDRIVERS platform is the first data strategy platform on the market. Talk to one of our experts and get to know our work.