Many organisations seek to automate existing processes when digitally transforming.
Traditionally, to get the most value out of any digital transformation you need to reimagine processes and operating models to truly release the value within.
At ProcureTECH 2022, May 11 and 12, you can discover the benefits of digital transformation including operational efficiencies, stronger compliance, and improved risk management.
Attendees to Australia’s premier virtual procurement technology event will hear about the Vodafone NZ transformation story, how they have adapted and adopted technology to reimagine procurement for their organisation.
Cameron Paice, Acting GM APJ, Customer Engagement and Experience, Intelligent Spend and Business Network, SAP/Ariba joins PASA’s exclusive speaker line-up.
Some of the other key topics to be covered include:
- new Payment Times Reporting Act 2020 demands agility from large organisations Procure-2-Pay systems
- The new e-invoicing initiative from the ATO which suggests buyers and sellers move online for greater benefits
- why C suite business leaders need better information, faster and more accurately from the supply side
- the faster development of eMarketplaces and eCommerce platforms – as we accelerate towards the paperless procurement office.
SAP’s Guide to Procurement Transformation says the attention (and need) around digital transformation is only going to intensify.
“In this climate, one key priority – digital transformation – continues to grow in importance,” the guide says.
Deloitte’s 2021 Global Chief Procurement Officer Survey found one of the largest increases of any priority was digital transformation, with 76% of chief procurement officers (CPOs) viewing it as a high priority.
“With procurement functions that accelerate digitization plans, procurement leaders will be better positioned to steer their organisations through disruption, protect their assets, and drive future success,” SAP says.
“Lean, automated processes can help them react promptly to the unexpected, while greater use of data, analytics, and artificial intelligence (AI) can enable better-informed decisions and stronger results. Plus, such transformation can free leaders to adopt even more strategic roles within their organizations beyond the traditional focus of reducing costs and risk.”
Last month PASA reported the release of The Hackett Group’s renowned Key Issues 2022 study which highlighted the hot topic of Digital Transformation.
The study, formulated from the responses of procurement leaders, positioned digital transformation in one of the three key themes of the document.
”Digital transformation remains a front and centre enabler, but now refreshed with increased rigour,” Hackett said on the outlook for 2022.
Hackett also found organisations which are lagging in digitization express concerns in several critical areas: access to suppliers, exposure to risk, shortcomings (and costs) of legacy systems and teams not being equipped to “lean in” to digital transformation.
How to transform in three key pillars
SAP’s Guide to Procurement Transformation suggests three pillars to accelerating procurement digital transformation.
- 1. Reimagine the process
- SAP says automation is just one essential aspect to increasing speed and efficiency and leaders must advantage of smart, guided experiences to further remove modern complexities and add intelligence at every stage of the cycle.
“This means using tools that allow you to take a step back and see not only what tasks are directly in front of you, but also what new opportunities are worth exploring,” the guide says.
“Role-based content and tailored steps create a simple, streamlined workflow that prompts appropriate action, while advanced technologies work in the background to make it all more autonomous. This frees you from an endless array of unnecessary tasks so you can focus more energy on strategic imperatives.”
- 2. Go deep with collaboration
- SAP says lack of collaboration leads to lack of visibility. It quotes poor visibility as “a major challenge that often increases risk across the supply chain and impairs decision-making”
“Better visibility means knowing exactly what inventory levels are like within your facility, your supplier’s facility, and even their supplier’s facility,” the guide says.
SAP says this information prevents the risk of overreliance on certain suppliers, but also helps to predict and prevent product shortages and overages.
- 3. Connect to the core of your business
- Spend management must flow across all processes and systems within the business, says SAP.
It says basic integration of purchase order and invoice information is just the beginning. “To deliver the degree of speed and innovation needed, you must connect your guided procurement process and strong supplier partnerships to the rest of the business.”
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