Leveraging Technology in Purchasing Processes

Why do we need advanced purchasing technologies?

Given that the process of life is maintained using technology and integrated into life, the answer to this question could be briefly explained as necessity and improvement. However, if you would like to receive an answer in line with the procurement, it offers essential functionality that supports all of your company’s or company’s processes, with an initial focus on extending from sourcing to contract, and in the future from demand to payment.

The best procurement processes are those managed and supported by technology. Of course, it would not be right to limit purchases to only procurement. Technology is also important in the identification of several financial metrics, such as customer relationships and profit analysis that accompany procurement.

Previously, businesses were implementing technology strategies that were fragmented and unintegrated, with multiple systems and tools. You were probably a part of these businesses, even if it was for a part-time period. Now the focus is on more strategic tools to reduce internal complexities and tap into economies of scale.

The provisioning action requires you to follow a consistent pattern in digital technologies and methods. Technology software helps us make better purchasing decisions and make faster purchasing decisions. Also, digital innovations can help transform and improve capabilities when managing smart purchases, negotiating, and purchasing from suppliers.

By utilizing technology, strategic end-to-end purchases are accelerated. There is one more plus: Access a larger supplier pool!

A broader pool of procurement provides more transparent information Data analyzes can also be carried out more easily. You can quickly perform analysis of the data in the computer environment and test its accuracy.

Facilitating data analyzes also strengthens strategic steps for purchasing. If there is a lot of supplier data available, there is also the possibility to consolidate all of this supplier's data with its links to the organization as a whole. Collaboration with suppliers strengthens with the technology we call P2P, from demand to payment. Costs go down, productivity goes up.

If examples of savings are provided to benefit from technology in purchasing processes; you get a minimum of 5 percent savings (sales & marketing) in indirect products and services. There is a maximum saving of ... (information and technology equipment, office supplies & paper)

And purchasing technologies for performance improvements are like medicines. Intuitive new systems (AI for example) that have been developed automate and improve performance on non-value-added tasks by taking into account user experiences. This lets you develop supplier analysis and manage it better with near-real-time access to data.

Older systems contain negative returns due to their risk of error and cost. Disorganized and inconsistent architectures will also occur and your risk of failure will automatically increase. It also helps you better use ERP systems. You have systems integrated with all operations. This is also a good way to develop the most suitable purchasing model.

P2P processes are added to payment from demand, next to ERP applications. Most organizations beyond P2P. E-Procurement uses S2P solutions such as Automation of Payments and eInvoicing. They are cloud-based systems with functions such as innovation, upgrading, collaboration and agility. and digital platforms. Most organizations go beyond P2P. E-Procurement uses S2P solutions such as Automation of Payments and eInvoicing. They are cloud-based systems with functions such as innovation, upgrading, collaboration and agility.

Another factor that is required to be decided about technology in purchasing processes is: inside your own firewalls or to cloud-based systems, is the technology for your business. Cloud solutions provide security and convenience for faster solutions. Many industry- and industry-specific systems are in addition. For example: POS, WMS, EAM ve ERP.

Technologies like the S2P being developed can be at the heart of your business technology architecture, acting as a good integrator between operations and finance. Technology will also be an indispensable part of purchasing for the selection of the best methods.

Technology has always been a function that says, "I’m here when we build the process of your procurement processes, choose the best supplier, create more efficient work spaces for purchasing functions and most importantly, manage our customer and supplier relationships in the best way possible."