Purchasing Departments are accelerating Digital Transformation efforts in 2022 to escape the pitfalls of conducting business with excel, eliminate the clutter, organize their data, and ultimately become more efficient. Given the last 2 years with COVID, Digital Transformation in purchasing has become an essential hot topic, however in 2022 there’s a new twist: Purchasing Departments are not seeking quantum transformational leaps, rather they are opting for small incremental steps that deliver immediate value to the company. Why?
Driver 1: Purchasing Departments are too Busy
Covid-19 related supply chain challenges have resulted in unprecedented amounts of work for the purchasing team. A buyer’s day is filled with chasing parts, managing supplier price increases, responding to sales, and other transactional activities that provides limited value to the organization. As a result, purchasing spends most of their day managing critical issues while losing sight of strategic initiatives like cost savings.
Driver 2: All Encompassing Supply Chain Solutions Do Not Deliver Immediate ROI
All-encompassing supply chain solutions are powerful, but the amount of work necessary to properly implement the tool across an organization takes significant time and money – both enemies to delivering a reasonable payback to the company in a timely manner. It may take as long as 12-18 months for the company to truly see value from the implementation.
Driver 3: Scope Creep
Activities of the Purchasing Department effect every other department in the company. So, when it comes time to implementing a supply chain system, other departments get involved with specific wants and needs that complicate the matter. The system becomes too complex and expensive which results in a delay and in many cases, companies choose not to move forward.
Companies need immediate relief for critical supply chain issues now. Most of these issues are time consuming and transactional in nature but can be resolved by deploying targeted technology to solve a specific issue. This a step-by-step approach delivers incremental value to the organization and builds the foundation for an all-encompassing Digital Transformation in purchasing – one that can be evolved over time.
Click here to see a Press Release announcing the addition of Lisa Gonzalez Smith to the Advanced Purchasing Dynamics team (while at Ford Motor Company, Lisa provided executive leadership of a global procurement IT portfolio enabling $105B direct and indirect annual spend and advises companies across various industries on how to digitize procurement and leverage the benefits for cost reduction and operational efficiency.) Lisa will assist customers to implement Advanced Purchasing Dynamics Building Block implementation methodology to evolving Digital Transformation in Purchasing.