Boost Efficiency by Reimagining Your Procurement Execution Model

Unlike most other organizational processes that have been optimized through software, digitization, procurement has lagged behind as an after-thought. However, as GEP points out:

“Focus on the buyer’s core activities. How you buy corporate spend is not a strategic differentiator for your business, it’s a distraction. Alternatively, lots of procurement processes are administrative/low value add. So, the time spent on these activities should be automated or managed elsewhere for you to focus on what actually matters.”

GEP - PROCUREMENT OUTSOURCING WHEN TO BUILD WHEN TO BUY

The article explores the challenges in effecting change to internal procurement processes, and then strategies for navigating these barriers.

How does improved software tip the scale?

One critique however, is the assumption that internal tooling (software, procurement system) is fixed, and cannot be improved. We feel that leveraging best-in-class procurement software can tip the scales through greater efficiency, primarily in repetitive low-value activities that make up the bulk of buying activities in some organizations.

“In an evolving world, it’s good practice for CPOs to critically evaluate the function once or twice a year and evaluate the journey of their own operating models against options available in the market.”

GEP - PROCUREMENT OUTSOURCING WHEN TO BUILD WHEN TO BUY

Whether exploring managed procurement services/procurement outsourcing or integrating digital procurement software into your business, be sure to include considerations like the value of on-demand access to real-time data, the risks associated with human error, and the costs associated with inefficient procurement process bottlenecks to evaluate the true cost equation/ROI of your options.  Check out GEP’s full article here.

Better Systems = Better Outcomes

Current SCM is one of the solutions that can help automate many of your procurement functions, while also inspiring greater collaboration within your purchase stakeholders, creating a centralized source for your data, and ensuring real-time reporting is enabling informed decisions to expedite your entire procurement process.