The pandemic, along with various other challenges, have caused many businesses and customers to experience supply chain shocks in the past. But Forbes detailed in an article how businesses that embraced digital transformation were much better equipped to handle the pandemic.
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Forbes highlighted the following insights on digital transformation with help from procurement leaders.
Intellegent enterprises innovate with business networks
The article detailed a presentation Chris Willcocks, head of intelligent spend management at SAP ANZ, gave during the SAPPHIRE NOW ANZ event where he showed the audience the future of procurement and how it is built on insights from quality data across supply chains, which brings buyers closer to suppliers. Willcocks explained that this demonstrated how collaborative business networks are foundational to digital transformation.
“When you’re connected not only to your suppliers, but to your customers and their customers, you make the move to being an intelligent enterprise,” he says in the Forbes article.
Autonomous procurement for intelligent spend
As the world looks to boost productivity to recover from the pandemic, markets could face shortages in good and labor. Intelligent procurement, where people complete the tasks that machines cannot replicate could be the solution to this problem according to Baber Farooq, senior vice president of intelligent spend management at SAP.
“Procurement is at the heart of solving these [productivity] problems,” says Farooq in the Forbes article. “That’s why we’re focused on automating more and more processes ─ what we call autonomous procurement. Intelligent spend is finding out what machines can do and letting machines do that, and getting people to focus on the things that people do, which is establishing strategic relationships with suppliers.”
Digitalized procurement translates to business innovation
Business networks have dramatically changed procurement by digitizing forecasting, inventory management, and various other collaboration points between buyers and suppliers, which has led to more time and innovation.
“I was talking to an automotive customer who said that over 90 percent of the innovation they have in their cars came from their suppliers,” says Farooq in the Forbes article. “Another customer in Asia recently launched an initiative where they used the SAP business network supporting the goal of paying all suppliers within seven days. The network allows you to foster that amazing relationship with the supplier because everything is digital…People can do what they do best, which is driving relationships and working on innovation.”
While many businesses are regretting not digitalizing fast enough following the pandemic, now is a great time for them to do so ahead of the looming supply chain disruptions.
