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    Group 20 - Digital Transformation in Procurement

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    Shubham Rathi

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    © All Rights Reserved
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    Group 20 - Digital Transformation in Procurement

    Uploaded by

    Shubham Rathi
    56 views11 pages

    Original Title

    Group 20 _Digital Transformation in Procurement

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    56 views11 pages

    Group 20 - Digital Transformation in Procurement

    Uploaded by

    Shubham Rathi

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Digital Transformation in

    Procurement

    Supply Chain Management


    Shubham Rathi 2002219
    Vikrant Yadav 2002266 GROUP - 20
    Vedant Saraf 2002260
    Trisha Dhawe 2002253
    Sudeep Das 2002237
    Yash Palanpure 2002276
    Content 1/10

    SN Topic Presenter Slide


    1 Introduction Shubham Rathi 2

    2 Digitization Impact on Procurement Value Chain Shubham Rathi & Vikrant Yadav 3

    3 Expansion of Advanced Analytics Vikrant Yadav 4

    4 Robotic Process Automation Vedant Saraf 5

    5 Procurement Performance Management Vedant Saraf 6

    6 Accelerate transformation with Technology Trisha Dhawe 7

    7 Building a procurement-as-a-service portfolio Sudeep Das 8

    8 Stakeholder Experience Yash Palanpure 9


    Introduction 2/10

    • Procurement has changed considerably in recent years, and all evidence suggests that it will continue doing so over the next three to   five
    years. The advent of technology has accelerated this change and will play a critical role in determining how the industry moves forward –
    and how quickly. 
    • The research found that a mere 32 percent of procurement organisations have implemented a digital strategy – and only 25 percent have
    the requisite skills and resources. 
    • By not adopting technology, a business can find itself exposed from a security and business standpoint: cyber risk, heightened
    competition, hiring difficulties and disruptive innovation are four key examples of potential problem areas.
    • To succeed and prosper in the near future, procurement organisations must be aware of technology – and of how to use it.
    Digitization impact on Procurement Value Chain 3/10
    4/10

    Expansion of Advanced Analytics

    • Advanced
    analytics enhance
    business
    intelligence
    capabilities from
    insight (the
    current state) to
    impact (the what-
    if scenarios).
    • One common
    example in
    procurement is the
    spend cube and
    dashboard and
    spend
    categorization.
    5/10

    Robotic Process Automation

    • RPA differs from


    traditional software by
    working at the user
    interface level, replicating
    the exact actions of a
    human user—effectively a
    virtual method of business
    process outsourcing.
    • RPA augments human
    resources with virtual
    “bots” to improve
    productivity and allow
    people to focus on
    activities that add value.
    6/10

    Procurement Performance Management


    • When procurement is the hub of cross-functional collaboration, the leadership team often wants access and
    transparency into procurement’s performance.
    • Many senior executives want real-time insights into procurement’s key performance indicators—from project status
    and actual savings to forecasts and the Return on Supply Management Assets (ROSMA™) metric.
    7/10

    Accelerate Transformation with Technology

    • Procurement should use the tools that are available to accelerate its digital transformation. Big data tools, social
    media, and cognitive computing – amongst many other things – can be used to make organisations more efficient and
    more profitable.
    • Blockchain technology can record the quantity and time of transferred goods, such as raw materials or parts, as they
    travel between supply chain nodes. This chronological record-keeping mechanism it offers makes data collection
    secure, accurate and automatic so that suppliers are held accountable and procurement officers can get the insights
    they need for better decisions.
    • Companies that reduce their spending on in-house employees and leverage not just technology, but also the "gig
    economy" to digitally hire remote specialists as needed, will have a competitive edge over companies running
    traditional procurement operations.
    • According to a report, 66 percent of surveyed companies are already automating spend analysis by using technology
    that compiles, classifies and cleans supplier spend information.
    • Beyond spend analytics, companies are starting to leverage predictive analytics in the procurement process to
    forecast revenue, prevent disruption and identify new market opportunities.
    • AI-enabled software can even clean and curate its own data, making it easier than ever for companies to benefit from
    procurement performance reporting without raising overhead costs.
    8/10

    Building a procurement-as-a-service portfolio

    • As part of efforts to align procurement more


    closely with the needs of stakeholders,
    organisations should work to create an ‘as-a-
    service’ portfolio that offers a superior degree
    of reactivity and streamlines the overall
    buying experience.
    • Researches suggests that procurement
    organisations focus on establishing purchase-
    to-pay and sourcing offerings.
    • To bolster this value further, the organisation
    should be rebranded to reflect overall
    awareness of its functions.
    • Finally, procurement should work to make
    sure that resources are placed globally and
    that its centres of excellence are functioning
    as efficiently as possible.
    9/10

    Stakeholder Experience

    • World class procurement organisations have identified ways to make substantial efficiency gains and cost savings –
    and are moving on to bettering the stakeholder experience in order to boost their value to the organisation and gain
    the trust necessary to undertake higher-level work.
    • The highest performers are focusing on three distinct areas. The first is building stakeholder experience across
    multiple channels and personalizing it: if they feel like they’re being treated as individuals rather than arbitrary data
    points, stakeholders tend to be happier.
    • The second is to look for value beyond savings: here, technology is especially important, because it requires some
    investment, but it can often boost efficiency considerably.
    • The third is segmenting the stakeholder community: determining who needs which service, at what level, and for
    how long.
    • For example, Porsche places the customer at the heart of their strategy: Customer experience drives Porsche’s digital
    strategy. All customer data is pulled into a central CRM data centre and allocated to a unique ID. Throughout the
    entire lifecycle, every customer interaction at every touch point is documented. Thanks to this ID, Porsche knows
    their customer’s expectations for each touchpoint. The data also allows for real-time segmentation and predictive
    intelligence, enabling them to maximize campaign success.
    10/10

    Thank You

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