As we head into the 2021, it is important to recognize the
transformative shift within the Procurement function over the past decade. Previously,
a typical purchasing function is limited to a buy-sell transaction or focusing
on cost savings or supply continuity. Today, strategic sourcing
is a proven approach to establishing increased competition, cost reduction, creating
relationships with suppliers, thorough understanding of market / internal
company requirements, reviewing spend analytics, category management, and much
more.
Have we observed a big shift in the way strategic sourcing
is executed? Many business leaders are eager to improve processing, reduce
costs, and optimize competitive advantages. To do so, they must be able to
reshape their supplier relationships, align on strategies to revamp the desired
future state, and recognize the competitive advantages strategic sourcing has
shaped across decades.
Providing Value-add Services – Beyond Savings
Today, procurement professionals are expected to deliver
services beyond cost reduction. The demand of strategic sourcing has shifted to
offer value-add capabilities, such as:
- Data Analysis:
- Collection and in-depth analysis of essential data to consider the best-in-class go-forward strategy
- Supplier Management and Development:
- Investing and sustaining supplier relationships
- Identify opportunities to create total cost savings above and beyond piece price reduction through leveraging supplier relationship.
- Leveraging market intelligence to improve efficiencies
- Utilizing competition to negotiate and reduce overall costs
- Make realistic, impactful recommendations that address constant organizational advancements and supplier relationships
For decades, driving savings has always been a primary goal
within procurement. Note, savings is typically recognized as the key
highlight and how procurement is known, understood, and valued across
organizations. However, the current state of procurement is shifting and being
tasked with a deeper, more meaningful way procurement is driven, thriving
beyond hard dollar savings, cost containment, or cost avoidance.
Within the procurement workspace, talent has dramatically increased
over the years. The procurement function has greater expectations – competition
within the field has risen higher than ever before. Procurement
professionals are being tasked with increasing the speed of project delivery, faster
innovation, accommodating tighter budgets, and addressing competition within the
marketplace.
Digital Transformation
Digital Transformation is changing the procurement function. Many procurement companies have been tasked with agility,
speed, and scalability to address the impacts of procurement disruptors. The
key to success is capitalizing on the undertaking of digital transformation and
using this as an opportunity for growth, competitiveness, and efficiency.
By 2021, the world of digital transformation has required procurement
professionals to think creatively, digitally, and become data masters. We must accept
that change is constant, and collaboration between procurement and data science
teams will always be meaningful and relevant. According to GEP, leading
companies are pursuing “digital-first” strategies.
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Corcentric, and its resources, has been extremely proactive
with advancing technologies, improving data analytics tools, and staying in
the-know for software developments and procurement transformation. We
offer AP Automation, procurement, and billing solutions to help companies
optimize how they purchase, pay, and get paid. A key focus is delivering
services inclusive of additional value-add capabilities, such as building sustaining
supplier relationships, applying relevant market intelligence, benchmarking
analytics, consulting, and more.
For more information on how we offer top of the line procurement
and consulting services (beyond hard-dollar savings) and ways we keep up with digital
transformation – please email us at [email protected].
Let’s get started today!
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