The rise of technology is advancing the way of the procurement process. 

With the evolution and development of advanced technologies and most importantly the internet, procurement functions have shifted to e-procurement. When the internet garnered much prominence and e-commerce came into the game, such functions turned to email and websites. Last year has seen a tremendous transformation in the world of procurement where organizations saw adopting cognitive procurement technologies such as AI, Machine Learning, NLP, Big Data Analytics, and RPA. Such technologies provide businesses the opportunity to improve efficiencies in business transactions and enhance negotiation leverage for firms.

E-procurement assists organizations in automating internal procurement processes including purchase order tracking, RFX events and supplier evaluation, leading to higher operational efficiency. It also helps ensure contract compliance, track vendor SLAs and apply scorecards, and increase productivity from suppliers.

Most companies face challenges in their procurement processes owing to an ineffective process and human errors. Undeniably, procurement solves half of a business's goods acquisition-related issues, but it is also a challenge to determine a high-quality vendor for the company. Integrating technology can increase the efficiency and speed of the procurement process within an organization, resulting in time savings. It can also lessen the average cycle time as humans take and eliminate manual document storing system, giving businesses a solution to organize, access, and track their documents whenever they want.

Top Procurement Technologies

Regardless of type and size, procurement is a vital component of every business. Effective procurement processes save costs, aid compliance, ensure companies work with trustworthy suppliers and eradicate delays and mistakes.

Here are the top procurement technologies every organization must look at.

Cloud-Based Platforms

Cloud infrastructures provide organizations the flexibility, scalability, and accessibility in order to manage procurement processes. Through this, they can meet fast-evolving market demands. These web-based platforms deliver the capabilities needed for different aspects of an end-to-end procurement process, including Bellwether, Procurify and SMART by GEP.

Data Analytics

Embracing an analytically-driven approach in procurement can help businesses to tackle challenges related to procurement processes. Using analytics optimize cost, improve processes, and manage reporting efficiently. Reports show that analytics will have an incredible impact on the procurement process in the next coming years. Indeed, a Deloitte Global CPO survey found that 50 percent of respondents surveyed reported that analytics are helpful in cost optimization, followed by process improvement (48 percent), and management reporting (45 percent).

Self-Service Portals

Making use of self-service portals can lower the cost associated with managing suppliers, enforce compliance and improve the purchasing experience in today’s global economy. Oracle Self-Service Procurement Cloud, for instance, allows organizations to effectively manage employee requests for goods and services from approved vendors. The software also assists them to control spending, get the best pricing, minimize training requirements and cut support costs.

Future Opportunity

Moving ahead, the procurement function yet to move from delivering cost savings to providing a strategic edge to the organization. In order to develop a holistic supply chain and drive enterprise-wide cost reductions, procurement needs to capitalize on digital technologies. Organizations also must understand the internal need, assess suitable vendors, negotiate terms, approve an internal purchase requisition, submit a purchase order, receive an invoice and pay it to procure and items.

Although procurement management can be daunting for organizations that reach a certain size, larger firms will often have a centralized procurement function with its own employees and procedures.