Procurement must be a key enabler of this transition, driving new levels of business performance by reimagining current capabilities as well as embedding analytics into business processes so users can access insights and information in an intuitive and actionable manner.
Fremont, CA: Even before the global pandemic, business leaders were under increasing pressure to improve the agility of their operating models and provide a better experience for their stakeholders. The unprecedented disruptions that began in 2020 and continue to this day served as a wake-up call for executives to immediately shift their focus to how they could achieve unprecedented levels of adaptability and resiliency—something that could only be accomplished by accelerating their digital transformation. What was once merely important has now become an absolute necessity.
Businesses must have the intelligence to respond immediately to external and internal changes in order for value chains to be adaptive and dynamic. The disruptions of the past year demonstrated more clearly than ever how core process automation, utilising advanced technologies such as artificial intelligence (AI), is critical to achieving better and faster results. Procurement must be a key enabler of this transition, driving new levels of business performance by reimagining current capabilities as well as embedding analytics into business processes so users can access insights and information in an intuitive and actionable manner.
The Way to More Adaptive Value Chains
Decision-making that is dynamic. An agile, adaptable organisation can anticipate and act decisively when change is required, and even before it is required. Adopting innovative practises and identifying market opportunities ahead of the competition are also examples of flexibility. Leaders who exhibit these traits in tandem are reshaping the future of procurement, delivering unprecedented value to their organisations in the following ways:
Having instant access to the best-fit suppliers for all services and goods
Providing a unified, self-service experience for stakeholders in business functions
Streamlining communications and collaborating with vendors
Agile companies gain a competitive advantage by responding dynamically and rapidly to external and market changes across the value chain, with a focus on innovation. According to a recent survey on AI Adoption, 14 percent of businesses reported cost reductions of more than 20 percent as a result of AI adoption in supply chain management, while 16 percent saw cost reductions ranging from 10 to 19 percent. At the high end, 13 percent of companies reported revenue growth of more than 10% from AI adoption, while 22 percent reported revenue increases of 6-10 percent.