After reading this article you will know:
– what are the pros and cons of the procurement process automation,
– what struggles implementing innovative solutions,
– what kind of transformation choose.
Automation. It’s difficult to find another trend with so many myths around it. AI, industrial robots, algorithms of the future which may replace people at their work. All of it sounds a bit as taken directly from science-fiction movies. Meanwhile, business process robotization and automation are the elements of new market realities. That’s why developing conscious and practical attitude to own automation programs (even minimally) is so relevant.
To prepare a company back office properly, it’s good to know most common obstacles appearing during the automation process:
- significant process dispersal
- lack of knowledge what kind of effects should be expected
- lack of proper mindset
- no information on positive examples
- too little budget for innovations
- lack of information on available solutions
Do you meet similar problems in your organization? Let us solve them.
Primarily, remember that automation is a method, not a goal you want to achieve. Developing procurement units should be coherent with changing priorities and challenges of a company. In companies which are starting their journey to advanced automation, very often finance or marketing departments initiate the process of automation. It happens as these departments install the tools which do not require IT team engagement on their own. It looks quite similarly in case of procurement departments.
e-Procurement systems, such as NextBuy, are available from web browsers and a company may rely on professional support during or after implementation. The simplicity of the service is not the only benefit coming from purchasing process automation. A return on investment is even more important. This kind of technologies can help reduce costs, most often by dozen or so to a few dozen percents. Procurement platforms also support generating process savings as employees can focus on more important tasks. Acceptance workflows become accelerated.
If you are still not convinced of procurement process automation, check what you and your organization may gain:
- smooth communication with suppliers, from almost every place, at any time.
- easier supply chain control and management, particularly important in case of in ever shorter product life cycles and number of their options
- simplifying and transparency of already existing processes and their standards
The big question is how to run procurement automation process in a company and bravely step into the Procurement 4.0 era. Use some of our tips:
- Start slowly – with less complex processes. In the meantime you can work on your team enthusiasm for automation
- Fix before your start automation if the process is not right itself
- Verify, which processes may be automated and which should be run by people
- Evaluate automation effects. Thanks to that you can optimize effectiveness.