Digital Procurement

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Digital Procurement

Various tech advancements such as big data, advanced analytics, robotic process automation and artificial intelligence, you name it and they are there to aid in the productivity and enhancing supply chain efficiency of organizations. During a recently attended event on procurement, my knowledge and insights got updated as to how procurement in the digital era can prove to be a gamechanger for companies if they decode it in the best of their capabilities. Lot many companies have even started deploying the best e-procurement tools from leading technology services companies while some are yet understanding the nuances of the same.

I happened to meet with some of the experts in the field and this is what they have to say... Nikhil S Gurjar, President, Consulting Connoisseurs and Author, informed that the digitalization juggernaut is going to revolutionize the procurement systems across organizations to provide better deals, transparent process/data trails and systematized decision-making processes that would help the procurement managers of the future to work with increased productivity and lower stress levels. Technologies of the future are going to help institutionalize the strengths through individual leverage vs. collective assimilation models of the past. The ecosystem challenges, however, include a seamless digital environment with an adaptive culture that embraces technology migration in a more efficient manner. Lastly, the next generation of procurement using block chains and cryptocurrencies, will force organizations to revisit their internal systems and realign the focus internally to simplify their systems and processes to gain strategic advantage.

While offerings a perspective from the service side talking about the revolution that procurement can bring in the hotel industry, Emmanuel Ebray, MD, South East Asia, HRS, highlighted, "Hotel industry is extremely fragmented and dealing with such complexities is a humungous task for anyone across the world. Data is actually the key to streamline such obstacles and offer consumers a very structured platform for a hassle-free booking. In reality in the hospitality industry in tier II and III cities, you would realize that there’s not even always Internet connectivity. Most of the bookings are still managed offline in India and because of that the data is not captured. There are so many players in this ecosystem and all IT solutions are not integrated. In order to capture data and to make it really efficient would be a long journey. From the sourcing perspective, data will really change the hospitality industry. We are aiming to bridge this gap. Doing so for tier I cities is still easier but when it comes to tier II & III, it becomes a daunting task, but I am sure as we progress and people start realizing the impact of digital procurement, things would be far more easier and better."

Yes, it's a fact that technology in many ways is changing the course of action. What the industry needs to take the due cognizance of is the usability and implications involved in deploying the same and how smartly they can integrate such systems into their already existing processes without causing any disruptions in operations. The key lies in the selection of the right procurement software and managing it end-to-end. The software services companies on their part, need to make the transition simpler for this to take the shape of an industry-wide phenomenon and not just a company-specific model. 

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