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Procurement function is at the forefront
26 May 2020
Procurement function is at the forefront
In this time of uncertainty, Procurement results are more important than ever. Procurement teams are indeed expected to play a major role in the necessary recovery plans, having to cope with similar or even stronger budget constraints and FTE cuts. Companies must, from now on, adapt to a significant reduced revenue and cash inflow.
In this context, the Procurement function priority is to get organized, first internally, but also together with their stakeholders and Finance departments.
Buyers have a key role to play: containing costs, diversifying sources of supply, finding new savings opportunities, while in the meantime, being careful not to fall back into some old habits with typical cost killer approaches.
CPOs must – more than ever before – :
- embark and closely manage their team
- constantly reprioritize to make sure that they are aligned with the business
- follow all the projects to ensure that actions are completed on time and on target
CFOs – more than ever before – need to rely on Procurement to regain room for maneuver. Concretely, they need to:
- work closely together to identify opportunities, prioritize them
- get up-to-date information on the expected contribution to ensure it is delivered with actual measurement capacities
Digital: a way to be more efficient and faster
No need to remind that technology is just a mean to an end, that can help, to be more efficient and quicker. If digital transformation is certainly not at the top of organizations agendas right now, there can be quick-win solutions worth investigating, even in the current context. Digital investments should be made, at least for the short term, under the following three conditions only:
- Be able to deliver an immediate ROI
- Address a tangible business need
- Enable an instant or fast deployment
Rely on a new generation of solutions
The market has significantly changed with the arrival of new players who are shaking up traditional codes. SaaS solutions are bringing lighter technologies with no impact on the existing IT landscape, avoiding long project implementation phases and can be operational in only few weeks.
These solutions are often the result of the frustration of purchasing professionals who did not find relevant solutions for their daily needs. On the opposite, features of these new type of solution focus on the real needs of the user, with simplified ergonomics and navigation, so the user experience is very intuitive and guarantee an immediate and large adoption.
One more strength is the ability of these solutions to easily interface with each other, as well as with the other environments (ERP, IS, SSO) in place. This allows organizations to progressively build or adapt their digital roadmap tailored to their environment and strategy to maximize the expected value of the tools.
These solutions are offering a specific positioning and greater functional depth on topics as varied as Supplier Sourcing, SRM, e-Sourcing, Supplier Innovation, Expenditure Analysis or Procurement Performance Management.
The value of a Procurement Performance Management tool
Per Angusta is a Procurement Performance Management SaaS solution, that supports companies in:
- Organizing their procurement
- Helping to establish a roadmap
- Prioritizing opportunities in a Sourcing Pipeline, setting savings target and progress tracking
- Providing a constant monitoring of the critical actions to make sure projects are executed on time
- Closely managing and supporting centralized and decentralized buying teams
- Providing an accurate picture of Procurement Performance to CFOs with savings reports that can be used to track expense reduction
- Reinforcing transparency and collaboration with stakeholders with clear progress reports
That’s how Per Angusta is helping buyers to orchestrate all their efforts and Procurement to get the most out of this situation.