Many leading companies are already utilizing digital technologies to revolutionize the way they are working with procurement. But we still see many companies struggling with how to apply these digital concepts to their own way of doing business.
Technology enables us to collect more data. The amount of data you can collect, track, and monitor is growing daily. And in the business world, good data – complete and accurate – is a key prerequisite to any analysis or decision. But the difficulty some companies are finding, is how to use this data, especially smaller companies with limited resources.
Automation will help with this. We’ve blogged in the past about how AI will become part of a business’ daily life and as this technology becomes more prevalent, the user experience will enable companies to understand and utilize the software with ease and in effect, shrink their procurement teams.
This diagram from Accenture’s report “Procurement’s Next Frontier” shows how they see the future:
To quote the report: “This smaller core decision-making team supported by advanced technology. The embedded professionals will spend the bulk of their time addressing business issues while applying procurement knowledge. The core team will use real-time transparency of information on demand, supply and pricing to handle business strategy, global demand and supply, policy, compliance, and global strategic supplier management.
This new structure, which will require new skills and roles with a more strategic focus, will enable the procurement organization to focus on strategically differentiating activities and generate much broader value”.
Bob Murphy, the CPO of IBM also adds “Enterprise digitization is on everyone’s mind. Category strategies and volatility are areas that are ever-changing. Center-led category sourcing techniques offer a constant flow of new opportunities. As you look at the rapidity of change, the most disruptive trends are likely to be the use of robotics and artificial intelligence.”
He also added “We are really stretching ourselves to consider capabilities we’ll need in the future to improve sourcing. An example is emerging tools like sentiment analysis to profile suppliers.”
Sentiment Analysis helps you quickly understand customers’ opinions and experiences across multiple channels. It is software that searches for and evaluates internal and external content about an organization and their competitors, identifying positive, negative, neutral and “no sentiment” texts – quantifying perceptions in the market.
What this means for you is that by conducting an analysis, you can understand and get a much better idea of whether a potential supplier will be suitable for you to work with and thus reduce the risk involved.
This is something that we’re already aware of at Koble. We’re in the process of launching Sentiment Analysis options on our platform and that is something coming very soon.
The move from a paper-based to a digital process between business buyers and suppliers will accelerate dramatically. Along with AI-led software and increased analytics this could mean information overload for those not up to speed.
We realize this here at Koble, which is why we aim to make the start of the process as easy as possible, so you can start the procurement process simply and effectively. A quick search for the product or service you require will list all companies relevant to your search. Along with a Sentiment Analysis all ready, you can then choose which suppliers fit your needs the best.