How is procurement digitalisation now an overall performance improvement?

Digital transformation is gaining ground in the business world and is reaching every profession, and the procurement function is no exception. New digitalisation technologies are at work at every stage of the procurement life cycle, and integrating them into companies has become a priority in order to remain competitive in their sectors.

For procurement teams to move away from low value-added tasks towards more strategic ones, automating their processes is now a must to ensure smoother transactions and many more benefits.

According to a McKinsey & Company study, 40% of procurement cycle tasks can be automated, or even more, from drawing up the procurement strategy to payment and reporting. This cycle generally takes the form of a Source-to-Pay process (Source-to-contract and Procure-to-Pay), an essential lever to become more efficient and better manage workload volatility.

The most widely used tool in procurement digitalisation is SRM (Supplier Relationship Management), which consists of managing the supplier relationship by setting up a portal that turns needs into operational tasks: aggregation of information, legal or contractual documents, evaluations, sourcing, etc. It is an easy-to-use space, defined as an area for sharing and contribution by all internal and external stakeholders. The company must have a clear view of its supplier panel and define its risk policy through a single repository.

It is a tool used mainly by procurement teams; it centralises all data in a single solution and lets you manage procurement with full performance. It is a key competitiveness factor for the company and a solution dedicated to the interaction of all stakeholders.

The benefits of an SRM: it allows you to:

- Improve procurement practices

- Gain both an operational and a strategic view

- Have a 360° view of all the company’s purchases

- Maintain a healthy and stable relationship with your suppliers

- Benefit from decision support

- Evaluate flows and exchanges with suppliers

- Guarantee considerable time savings and real profitability

SRM is therefore part of a drive for optimisation and operational efficiency within the company.

Abdelilah EL ATTARI

Expert in procurement transformation and digitalisation