Procurement is adapting with the influence of technology and you need to too!
Technology is influencing the wide reaching world of business and pleasure, but how we optimise the use of technology varies from business to business. If I were to speak with a leading insurance firm vs a global travel organisation, both value the influence of technology differently but with the same end goal or result.
Technology in Procurement
Fundamentally, technology is enforcing change within the procurement space, increasing efficiencies allowing greater control in process and less labour intensive aspects. In the past acquiring goods and services often through tendering or bidding processes utilised time, resources and come at an expense. The ability to have cloud based software maximises the reach and scope; enabling more strategic approaches to be rolled out across the Procurement function. Better stakeholder engagement is a direct correlation to less administrative/time consuming duties, as Procurement Specialists, Category Managers and Senior Management are able to invest more of their time working with the business. The shift between reactive procurement to more strategic is more obvious than past.
Key areas I believe benefit for technology in procurement
- Spend Analysis
- Contract management
- Supplier Risk Management
- Data Analytics
- Performance Management
Technology in the wider business
Aside the technology influencing the procurement function, the biggest driver is wider company technology. The accessibility for customer engagement, the fluidity of purchase to pay and more safe guarding aspects dictated by regulations such as GDPR. Organisations across the spectrum are all pushing investment in technology and as such Procurement/Category IT/Telco specialists are in high demand.
Social Media is perhaps one of the most surprising areas to consider, with organisations looking to compete amongst their rivals, strengthen their brand power and off the back of marketing functions growing in their own right making it one of the fastest growing spends for IT/Telco. It can be the driving force for HR as they look to bring talent into their business, Marketing as they look to grow their market share, even Customer Service to allow the consumer to “stay connected”.
Where does this leave the future of Technology within Procurement?
It is our belief that the face of Procurement will adapt and as such we should too!
For me, this is the best time to be in Procurement with more strategic opportunities are available, allowing for a more rewarding role and greater influence on helping the business hit their targets. Procurement functions are now being built with technology savvy individuals so do not get left behind. Get the exposure you may need in your current organisation, whether that’s through a secondment or just putting yourself forward to that new role.
Alexander Lloyd has been a leading partner to number of businesses across the Surrey, Sussex & London market within Procurement and Supply Chain and as such we would love to help share our advice, provide recruitment needs or simply talk through further market trends should you want to know more?
Feel free to get in touch with the team, or Damien Barnett who Heads up our Procurement Team; 01293 572900 or email firstname.lastname@example.org