Of all the industries that have gone digital, procurement is among those that have taken the longest to get there. However, there are a lot of benefits to digital procurement.
Some reasons for digitizing procurement align with reasons any type of industry goes digital–improved efficiency, lower costs, and improved data capturing.
For procurement, though, there are additional reasons to go digital. For one thing, digital procurement can improve collaboration between suppliers and third parties.
In addition, digital procurement that incorporates artificial intelligence (AI) can help procurement professionals accurately predict future demand and supply sources.
Benefits of Digitizing Procurement
There are countless reasons to propel your procurement team into the digital age. Here are some of the most prominent ones.
1. Make intelligent decisions about spending money
Procurement teams need to make informed decisions when paying for goods and services. By using digital tools, they can leverage machine learning to categorize their spend and manage it in real-time.
2. Make more accurate predictions
Digital tools can help procurement teams predict demand and future sources of supply based on machine learning. Moreover, this information can be obtained in minutes instead of weeks.
3. Eliminate repetitive tasks and processes
Procurement teams tend to repeat the same tasks over and over. Tech tools can automate these tasks, giving procurement teams more time to focus on complex challenges that require a human approach.
Requirements for Implementing a Digital Procurement Strategy
A successful digital procurement strategy requires several critical elements.
The right mix of talent
Digital procurement requires collaboration between cross-functional teams. For example, procurement teams might need to partner with legal, IT, and business development to fulfill their digital procurement strategy.
Of course, data is an essential part of digital procurement. For example, having easy access to previous contracts can help you make informed decisions and streamline the contract negotiation process.
You’ll need software that allows you to analyze and use the data you’ve collected. It’s also helpful to have technology that speeds up your processes, such as software that automates amendments during third-party contract negotiations.
Having tech tools isn’t enough to build and implement a digital procurement strategy. Everyone involved in procurement contracts will need to be working from the same playbook to ensure that all stakeholders are following the same processes and procedures.
Intuitive digital experiences
The above four elements won’t matter if you’re using technology that requires a master’s degree just to operate. If a tool isn’t easy to use, people will revert to the old ways of doing things.
How a Contract Negotiation Platform Can Benefit Digital Procurement Transformation
DocJuris’s contract negotiation platform uses AI to streamline the contract negotiation process for procurement teams. Here are some of the many benefits of implementing contract negotiation software into your procurement process.
Streamlined legal compliance
Integrated playbooks based on previous contracts ensure your procurement teams follow legal’s advice.
Elimination of time-draining activities
Stop wasting expensive resources on tasks that can easily be automated. With contract negotiation software, your teams will have more time to focus on the tasks that require a human touch.
Increased capacity to do more with less
Many procurement teams are struggling to do more work with fewer resources. Utilize technology to get more done even when you are working with a smaller staff.
Lower costs of resources and self-service
By taking manual, repetitive tasks away from your team, you’ll save money on resources.
Great transparency between departments
Multiple departments should be involved in contract negotiations. Using contract negotiation software like DocJuris gives every stakeholder transparent access to the documents they need. This ensures there are no unexpected surprises at the end of the contract negotiation process.
Greater control over indirect procurement activities
Using digital tools can give procurement managers more control over indirect procurement activities by tracking spending, building better relationships with suppliers, and staying on top of market trends.
Faster contract reviews
Streamlining the contract negotiation process ultimately means that contract reviews will be done faster. As a result, the company will have higher satisfaction with source-to-pay (S2P) activities.
See How DocJuris Can Benefit Your Procurement Team
Whether you’ve already embraced digital procurement or are in the early stages of adopting it, DocJuris is here to help streamline the contract negotiation process. See how our software can benefit your procurement team by joining our monthly demo webinar!