Instead, we are looking at the primacy of procurement. Compelled—and enabled–by the digital transformation of business, you might be spending much less time on administrative tasks and be able to focus on more strategic internal and external collaboration. The primacy of procurement is all about the industry evolving its role to become a strategic leader and embracing these new technologies to eliminate the tactical nature of the past. It’s an obvious statement of course. Procurement technology—largely divided into Source-to-Contract and Procure-to-Pay—has become a de facto platform for companies' purchase teams to manage their procurement of goods and services, suppliers, and budgets. Today's procurement are aggressively integrating all these disparate modules to offer a “source-to-settle” solution. In this interview, Nic starts by setting out his vision for Procurement in the next five years. With the advent of Artificial Intelligence (AI), blockchain technology and the Internet of Things (IoT) the future of procurement technology is at a tipping point. JAGGAER’s Advanced Sourcing Optimizer (ASO). The technologies are emerging, and while true autonomous procurement is still around ten years out, procurement teams need to start investing in these emerging technologies and shifting to a more strategic role. There has been transformation in the Procurement function over the past decade. With one of the largest, most accomplished consulting teams in the world, GEP helps enterprise procurement and supply chain organizations at hundreds of Fortune 500 and Global 2000 companies rapidly achieve more efficient, more effective operations, with greater reach, improved performance and increased impact. To run complex calculations or cut out routine everyday tasks it’s perfect for. Future is About UX. “ Buyers of the future will be supported by seamless and intuitive purchasing experiences, regardless of underlying technology systems already in place,” EY states. Procurement technology disruptors that are shaping the future include: extreme automation across the procurement cycle Social networks link people to their work and to each other in new and unexpected ways. Procurement Technology that can Redefine the Future of Supply Chain Oct 16, 2017 The constant influx of innovation in the field of sourcing and procurement has simplified the lives of supply chain professionals by eliminating burdensome paperwork and facilitating and automating both complex and simple tasks. Is there anything you can do to keep this from happening again? Digital Procurement 2. From a multimodular set of tools that drive the markets today, the procurement ecosystem is moving to a unified Source-to-Settle platform for tomorrow. Nic believes that the function will be driven by business-focused, strategic aims, with technology as an enabler. We would like to point out the difference between a fully integrated procurement suite vs procurement platform. Back to future on this: the Procurement of Things. © Copyright GEP 2021. The Future of Procurement Technology: Mediocrity is No Longer Acceptable 1 Today’s Procurement Technology Is a Failure More specifically, it is an unqualified abject failure. Yes, it is here, machines handling … Her creativity, strategic min… https://t.co/o29qN0JJqn, Amid the disruption of #COVID19, our global clients saw case resolution time drop by 23%. Most manual procurement functions as organization are familiar with currently will eventually move towards automation. Microsoft Azure, Amazon EC2, the Google Engine are all examples of how players are scaling up capabilities to offer application abstraction layers and hosted middleware benefits to help enterprises leverage the cloud more seamlessly and effectively. Combined with the powerful Cloud Services (containers of hosted applications), these applications can be internet-facing public web applications (such as web sites and ecommerce solutions), or they can be private processing engines for other work, such as processing orders or analyzing data. Plainly speaking this means that procurement is in the driver’s seat both in innovation but also becoming a focal point of business strategy. Gartner, for example, has predicted that by 2022: This includes cookies from third party social media websites and advertising cookies that may analyze your use of this site. From Shaz: “When you look at the future of procurement, there are two distinct areas that will be most affected. At GEP, we consider FIVE key drivers that propel Procurement Technology into tomorrow: In what Gartner calls the “Nexus of Forces”, four key trends are impacting the way businesses have traditionally considered existing processes, customer engagement, and product/services delivery to their markets. “The Future of Procurement and Supply Management” paper offers a reflection of what the profession may look like fifteen years from now. The results are somewhat mixed, but not necessarily surprising. Supply Chain Digital Magazine covers procurement transformation, digital supply chain, supply chain of the future, P2P, S2P, procurement & supply chain technology, AI, Automation & Procurement Platforms - connecting the world’s largest community of procurement and supply chain executives. Yet legacy #DemandPlanning systems and processes often fail to… https://t.co/zCqDKc8Ipu, Pardeep Gill, #CPO and VP of #SupplyChain at @AmerenCorp, discusses their #DigitalTransformation, managing the lowe… https://t.co/8sFU6ZgDqu, Pardeep Gill, #CPO and VP of #SupplyChain at Ameren, discusses their #DigitalTransformation, managing the lower dem… https://t.co/OvSksQOIip, What are your predictions for #procurement in 2021? Procurement is changing, and it’s up to us to change with it. Sie verwenden einen veralteten Browser. The future will have a strong focus on analytics and using data to drive decisions. The CPO agenda for the future of procurement Her… https://t.co/4phXbZJCWg, Meet Neha – she supports planning, execution and reporting for #SocialMedia programs. “In the Nexus of Forces, information is the context for delivering enhanced social and mobile experiences. The top two technologies, AI-based E-Sourcing and Automated Contract Review and Analytics are based around machine learning and artificial intelligence, which is at the heart of all technology innovations. Discover why traditional procurement technology strategies (primarily focused on deploying P2P and ERP suites) prove to be ineffective and how enterprises can leverage the emerging technology … Instead of being a paperwork-focused and monotonous profession, procurement needs to evolve and change with these new times. But which one drives the other? Learn how… https://t.co/1qet6sAypr, Modern #SupplyChains generate huge amounts of #data. Salesforce.com disrupted the traditional CRM installed models, and gained millions of customers by offering custom pricing (per user) for a fully integrated CRM platform, analytics, and intelligence. But how do we accomplish that… https://t.co/1E2L5IOYbX, Your #SupplierManagement program has not been a success, but you know you can’t drop that ball. This is a good indication of the procurement mindset but not meant to be fully representative.*. Low-cost computing and data storage have enabled advancements in mobile technology and the cloud, constant connectivity is the norm, and sensors … For example, think voice-activated purchasing experiences for goods and services, supported by natural-language search and virtual assistants. Procurement going on autopilot for lack of a better word isn’t the desirable outcome for anyone, nor do I think is it the most effective. Customer data is having a profound effect on the food industry. Get your complimentary copy of Gartner’s 2020 Hype Cycle here. Executive Vice President of Business Development & Co-founder, "Beyond all this, we see tomorrow's procurement technology as a key driver for innovation.". In the procurement function of the future, intelligent assistants will support everyday activities, and provide key data points will be used to enrich discussions and negotiations. Tracks the visitor across devices and marketing channels. Quite like how ERP platforms like PLM influence an enterprise’s innovation lifecycle, Procurement-for-Innovation will become a standard in the future. Machine Learning, AI, Blockchain and Digital Transformation: . Observers have been predicting the evolution of procurement for many years. The focus on user experience also ran through the event, with Matt Blyth of SAP Ariba discussing how businesses must respond to the mobile revolution that makes users want seamless solutions. The Future of Procurement: Why is Technology Lagging Behind? Information will be available in real-time. Procurement can play a key role in identifying unique suppliers, products or services that can help fulfill innovation needs, as supplier networks in public clouds become highly available. Procurement technology today offers extensive integration, visibility, and controls to the enterprise, helping purchasing executives operate more efficiently while saving from such economies. RPA or Robot Process Automation is a powerful technology, and no doubt will continue to play a role in the future of procurement but according to Gartner’s Hype Cycle, the expectations around it are beginning to subside as it grows into a mature technology. To bring this back under the lens of procurement there are two main schools of thought on the subject – R.I.P procurement and the primacy of procurement. Future of Procurement 2018. “The Future of Procurement Technology” envisions tomorrow's procurement offices, trends in procurement technology evolution, and how they will impact a company's fortunes. Used to send data to Google Analytics about the visitor's device and behaviour. These cookies are used to generate statistics and enable us to optimise the website for visitors. From the starting point of the traditional buy-sell, transaction-based purchasing, the practice has moved through stages of change that redefines most aspect of the business. Platform-as-a-Service like Microsoft Azure can connect oncompanies premises applications with each other or map between different sets of identity information. Source-to-settlement solutions of the future will be open architecture, web-based, and able to interface with many systems inside and outside the enterprise, allowing for a high level of automation and integration up and down supply chains, fully adopted, providing full transparency and real-time insight. Conversely, conversational platforms are still on the rise according to Gartner, and therefore a bit surprising that it does not have a higher rank in this poll. Technology holds huge promise in the procurement sector but making the most of it requires a rethink. The real discussion is now, “how much?” and “what’s coming next?” With new technologies emerging onto the scene globally, and the uncertainties created by the pandemic, mixed with massive social, economic and demographic shifts these questions are becoming increasingly top of mind. Food and analytics. According to A.T. Kearney, “today’s procurement technology is a failure.” According this latest research report, we are at an inflection point in adoption the future of procurement technology, largely driven by the emergence of more flexible, user-friendly procurement platforms. Quite like how ERP platforms like PLM influence an enterprise’s innovation lifecycle, Procurement-for-Innovation will become a standard in the future. Conversations about the future of procurement tend to revolve around technology, but there is more to the evolution of procurement than just technology. A strong digital literacy will be needed, not to say that everyone needs to be an expert or suddenly be expected to know how to write code, but an understanding of procurement technology, source-to-pay platforms, analytics dashboards, and how it all works together to provide visibility and insights is important. Do you embark on a transformation project then look for technology solutions? Learn more, These cookies are vital for the functionality of the website. Business users hate it, procurement users loathe it, and even the technology vendors treat procurement … #GEP experts @johnpiatek and David Doran explain how… https://t.co/Ho7OHXNgPF, As #COVID saw global #sports events get canceled, what were the impacts on #sponsorship? This will enable end-users to execute non-critical transactions themselves using the procurement platform, and resort to the procurement office in complex purchasing concerns. An integrated suite allows the flow of data from one module to another. The Future of Procurement Technology. RPA or Robot Process Automation is a powerful technology, and no doubt will continue to play a role in the future of procurement but according to Gartner’s Hype Cycle, the expectations around it are beginning to subside as it grows into a mature technology. The rise of technology is advancing the way of the procurement process. Procurement is changing, of that there is no doubt. Procurement’s contribution to the overall organization strategy will be a major driver for competitive … It entails visions of technology taking over and stealing jobs, killing off procurement as a profession and as a business function. A ne… https://t.co/TaL0PDwxqB. The former certainly is a daunting prospect. What this poll tells me though is that it boils down to what are problems that I need to solve in my organization today? Technology to drive Procurement as a strategic function. SIG (Sourcing Industry Group) is the premier global sourcing association, founded in 1991 that provides thought leadership, networking and training opportunities to executives in sourcing, procurement and outsourcing from Fortune 500 and Global 1000 companies. Procurement Systems and Technology Future Technologies in Supply Chain and Logistics The future of supply chains is being transformed globally by the development of a more digitalised environment, where value chains are connected, and distribution systems are … Letting technology do what technology does best – managing repetitive, standardised tasks is the same outcome that challenged HR, Finance and IT functions. In “The Changing Cloud Agenda”, Forrester analysts outline how CIOs are leveraging the Platform- and Infrastructure-as-a-Service advantages to drive new solutions to existing problems, and preparing to embrace new capabilities for tomorrow. These advanced technologies are not meant to replace people, but to augment them. In a year filled with many uncertainties, these GEPpers… https://t.co/RF4xejXJ4i, #SupplyChain disruption won’t let up in 2021. Many people will continue to #WFH even after #COVID, which means… https://t.co/xWP68Dmmhu, A multibillion-dollar #utilities company achieved over 12% in #savings thanks to #GEP's unique combo of #consulting… https://t.co/RFiRjLtc3K, In the industrial #SupplyChain, a cheaper #pump can sometimes be worse for #CostSavings than an expensive one. In the United … The procurement function must develop new capabilities to stay in front of change. By James Marland, Global Vice President, SAP Centre of Excellence for Spend Management. Instead of either replacing or rearchitecting the end-to-end inhouse solution, companies integrate cloud applications to reach existing (and many new) business users with web-native, multi-device front-end support. The procurement of the future will be truly user-driven and not office-controlled. It’s possibly a “big ask” to expect, as the Xchanging respondents suggested, that the most imminently impactful technologies for supply chain operations will be the Internet of Things and Predictive Analytics (79 per cent and 80 per cent respectively). Share your thoughts, comments and suggestions, The pandemic-hit #CPG industry has found unique ways to get product samples to customers. The Future of Procurement in the Age of Digital Supply Networks. The Future of Procurement is Driven by Technology. But there will always be a firm place for those who can think strategically, are comfortable working within the platforms themselves, and those who bring an analytical mindset to the table. Was your company walloped when China’s businesses and factories shut down in the wake of the coronavirus outbreak? And how do I take those technologies and make them work to solve a specific outcome? Reduce common problems, track data, and generally make it easier for procurement … By applying the learning capabilities of AI to the automation technology that RPA brings, and then taking it a step further with a conversational platform, you get an incredibly powerful system that not only automates routine tasks but evolves overtime and can complete complex tasks and calculations in seconds. As the next generation of users enters the workplace, procurement technology will be more intuitive and highly accommodative of the generational work style. During a webinar, we conducted a poll with over 1500 procurement professionals and asked what they thought would be the most impactful on procurement’s future. It would be either using already available platforms or … Enterprises frequently need new technology, product, or services that are not fully defined even as their innovation cycles evolve. What now? Read the new #GEP white p… https://t.co/0dPo7oZVNG, #COVID19 vaccine distribution is testing #SupplyChain pros, so the right #digital solution is critical. Procurement can play a key role in identifying unique suppliers, products or services that can help fulfill innovation needs, as supplier networks in public clouds become highly available. It will involve minimal or no learning curve to operate in the procurement ecosystem, and information/intelligence will be proactively available for decision-making at their mobile devices. - Forrester. Technologies such as big data, AI, machine learning, blockchain, electric and self-driving vehicles, and clean energy – to name but a few – are transforming business models. Tomorrow's procurement technology will intuitively map market news, new product announcements, political shifts, and geographic events into intelligent opportunities for businesses to leverage. With beautifully rendered interfaces and flexible workflows, GEP provides users fresh, intuitive digital workspaces that boost adoption, productivity and performance. Future of Procurement guest article provided by Milan Vyas. As a result of these technologies, Procurement will be much less about operational buying, as these activities will become largely automated or self-service, as Nic explains, “Technology … However procurement should always be seen as adding value – simply not a process or transactional function. With automation quickly making today’s skills irrelevant, the days of procurement staff as order-takers is over. Cookies that are set in connection with the system of the website. The platform of the future will be mobile in nature with built in features such as voice activated commands. Digital technologies are on track to automate most routine procurement processes within three to five years. Procurement is … Critically discuss the development and impact of procurement technology and the future use of such systems in the profession and comment on the future roles for humans in the procurement process. The Future of Procurement: Technology. Rapid advancements in digital technologies are remaking business supply chains, and are poised to transform how the procurement function delivers value. Bitte aktualisieren Sie Ihren Browser damit die Seite verwendet werden kann. The two with the least expectations from this poll are RPA and Conversational Platforms or Smart Assistants. People and their work experience in procurement will change, too. The platform will have built in contextual interactions with artificial intelligence layer to make users' life easier. Click here to read the next article. The procurement technologies that support the pursuit of these goals, however, will probably be much more advanced than any we know or can even imagine in 2019. GEP SOFTWARE™ provides award-winning digital procurement and supply chain platforms that help global enterprises become more agile, resilient, competitive and profitable. The future of procurement is in the foundation: people. With the evolution and development of advanced technologies and most importantly the internet, procurement functions have shifted to e-procurement. Technology and transformation clearly go together. On the other hand, a procurement platform conceived & designed with a view of all the activities, functions and processes a buyers does and hence the concept of modules has less meaning in the platform. It’s no surprise technology is transforming procurement. When the internet garnered much prominence and e-commerce came into the game, such functions turned to email and websites. Expert Answer . He also sees the future of procurement technology being used in … Included in the poll are some of the hottest current and emerging technologies in the procurement space, but by no means an exhaustive list. Mobile devices are a platform for effective social networking and new ways of work. Since procurement technology is pervasively embedded within supplier circles across geographies, it has a disruptive advantage of amassing the wealth of information from such distributed entities to deliver insightful knowledge to buyer communities. Investing in an application that is using this, like JAGGAER’s Advanced Sourcing Optimizer (ASO), will put you on the forefront of procurement innovation while bringing efficiency and ROI to your sourcing operations. The system is designed at a modular level and then provided the plumbing to connect these disparate modules. 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