Procurement is a multi-faceted word that defines a type of act or process of obtaining or sourcing some products or services for a business. A business needs to have preparation, solicitation, and payment processing for finalizing the procurement deal.
In this changing time, the procurement process also requires a substantial change towards procurement market intelligence. Technology has entered all the parts of the process, and we need to understand its importance in the procurement process.
There is a need felt among stakeholders concerning the technology shift in procurement. In this blog, we will discuss why procurement needs a new operating model.
Impact of globalization
The world has become a single country due to the involvement of fast modes of transport, the internet, and other advanced technologies. It is possible to interact with anyone sitting in the other corner of the world through the World Wide Web.
As a business, you should think about using the benefits of globalization by involving players from other countries. If you are going to procure a large number of products, you can invite a global tender.
There is no need to have a physical visit. The seller will ship the products from their country of origin after acceptance of the offer by you. This way, you will get benefits of price as products have separate prices in different countries.
Role of information technology
Gone are the days when everything was recorded manually on paper. Nowadays, its digital devices are making the whole process simpler and easier for the company, investors, and all the stakeholders.
You can contact experts or professional service providers, they will make your system more advanced by using artificial intelligence, business analytics, the internet of things, cloud computing, and others.
Computers, telecommunication, and the internet are the future of procurement, and those not choosing it will surely lose a large chunk of the market. As compared to the old system, e-procurement is easy and fast. You will raise your requirements, and all the things will happen automatically.
Need for a customer-centric approach
In today’s world, customer has become more aware, and they know their rights very well. It is the right time to make a change in the process and make it more customers centric. Various governments are also actively playing a safeguard role, protecting the interests of the customer.
Consumer affair courts have become a norm everywhere, and in case of any quality deficient, a customer may complain online or offline. As a business, it is required to use the proactive application of leading-edge concepts. TQM, JIT, relationship management, lean production are some important points for businesses to focus on.
Demand for more integration and automation
All the stakeholders are asking for automation and integration as they have understood the importance of that. It is felt that we need to forget the old system and should adopt the new system of automated ordering and expediting.
The system will automatically raise the procurement request by gauging the available inventory. You will get the option to provide inputs only. The need for upstream integration and partnership with buyers, sellers, and suppliers will increase.
It is always a wise decision to flow towards future trends, and once you adopt this procurement market intelligence, you will get a simple and effective procurement process.