Today's industries continue to be challenged by a continually shifting landscape of emerging technologies, shrinking product life cycles, globalization, and regulatory and compliance requirements.
These challenges translate into a number of operational pain points experienced by organizations across the procurement value chain, which are exacerbated by a lack of automation, visibility and integration of processes.
In the document How is digital procurement redefining businesses today for a world of tomorrow?, EY explores the technologies that can be leveraged as pain relievers, the real applications and solutions beyond the hype and sets out how organizations can start their journey towards digital mature operations.
Established and emerging technologies, such as robotics, analytics and blockchain can be leveraged to act as pain relievers to challenges across the procurement value chain. Examples include:
- • Automated go-to-market and bid process with minimal human interaction to avoid drawn out processes for complex procurement
- • Real-time updates of goods received using Internet of Things (IoT) to improve process cycle time
- • Robotic Process Automation (RPA) enabled detection system to compare goods receipt to Purchase Orders (PO) to reduce manual three-way matching with supplier invoices
- • Using blockchain-enabled cross-indexing system for original contracts or Request For x (RFx) responses instead of multiple, disparate systems
- • Using blockchain-enabled cross-indexing system for contracts responses instead of multiple, disparate systems
- • Crypto currency on blockchain platform for instant and secured vendor payments
Beyond the hype of emerging technologies, there are a number of practical applications and clear solution areas where organizations can and are leveraging advanced technology today:
- Smart Procure-To-Pay (P2P): Automation across the entire procure-to-pay functionality
- Automated procurement: Integration of procurement performance management to the Cloud
- Smart contracting: Integration of the EY contract management platform with the Cloud and advanced analytics solutions
Business-to-Business (B2B) web marketplaces: B2B offers effective management of the entire portfolio through any channel. For more details on each of these areas, and other examples of the reality of how the procurement process is evolving through automation, download the full PDF document.
To get started on a digital procurement journey, organizations need to understand their maturity against the digital procurement maturity model which has the following dimensions:
Organizations will need to map their own journey over the next three to five years, starting with strengthening foundations, transitions to digital operations and ultimately, achieving digital maturity.
EY has an experienced team of digital procurement leaders that support our clients every day on their own digital transformation journeys. Below, you’ll find details of the EY leaders across Asia-Pacific who are steering our clients through these exciting challenges and evolutions. If you’d like to discuss this topic further or find out how EY could help your organization, please get in touch.
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