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Disruptive Technologies ... Peer-to-peer connectivity, Robotics, Big data, Blockchain, and the Internet of Things are some of the new and highly sophisticated technologies in the world. Collectively, they are regarded as the strategic procurement technology and have proven to be quite disruptive.
Indeed, a day doesn’t go by without hearing news about destructive technology. Additionally, it is also worth noting that this technology holds great potential in changing the way procurement works.
Although the destructive power of technology can bring confusion, downright bewilderment, or resentment, statistics reveal that if it is incorporated in businesses, it is capable of yielding great success.
However, it is also imperative for business owners to know that utilizing this technology requires strategy. If you want to benefit from this technology, several things should be kept into consideration.
This blog seeks to provide you with an insight into the destructive power of technology and how it is affecting procurement. Stick along as you will also get to learn about the different types of digital business transactions and the various ways the disruptive technology is impacting acquisition. But before that, what exactly is disruption?
What is the Disruption?
Disruption is defined as the change brought about by technology. These changes can either occur in a business’s supply chain or parts of it. Notably, although technology, especially the Internet of Things (IoT) poses a significant threat to many companies, it offers excellent opportunities in other sectors. Additionally, disruptive technologies bring about new innovative solutions, which paves the way to the introduction of new business models and processes.
Disruptive technologies impacts procurement
Disruptive technology impacts businesses in multiple ways. The criterion of functionality incorporated in the current technology is capable of not only changing the way companies operate but boost profits. What’s more, it also offers safer methods of transaction.
For instance, Blockchain technology provides one of the best online transactions in the world. For those who don’t know what blockchain means, it is a decentralized digital ledger that operates by recording digital transactions across numerous computers across the globe, which makes it one of the most secure methods to conduct online transactions.
When blockchain technology is used in a business supply chain, it is capable of offering a secure online transaction channel. Due to its criterion of functionality, it is possible to trace a product back to its suppliers.
What’s more, since blockchain uses a decentralization process, it is impossible to alter any data on the ledger. Its potential to yield great success in business procurement has sparkled considerable excitement from both the private and public sectors.
If you look at the advantages of this technology on both a short-term and long-term basis, you will realize that it offers excellent opportunities. For starters, both new and established businesses will benefit from disruptive technology.
Procurement professionals can use these technologies to free up money, gain expertise, and save time. Further, it also helps teams to concentrate on the more critical tasks such as sustainable sourcing and supplier development. By focusing on the more critical tasks, businesses can increase their competitiveness in the supply chain.
Optimize the Disruptive technology to work in your Business
Without a doubt, there are numerous benefits of disruptive technology. However, not everyone can use them to their advantage. When procurement is used to grow a business, the first thing is to analyze your business and find out what can work best for your business.
Secondly, establish a baseline of where your business is and where you want it to be in the next one or two years. Ensure you also analyze any loopholes and look to anything that wasn’t designed to deal with the technology. Note that the main reason behind this preparation is to assess the market and analyze the amount of data you spend.
If you properly analyze your data, there is a high chance that you’ll find scattered information on various systems and departments. The next process, after undertaking all the above methods is to automate your process. The reporting process and supplier data are one of the best places to start your automation process.
The automation process is fundamental due to its multi-tier spend tracking capabilities. For many corporate buyers, automation is a growing concern. Additionally, multi-tier can also be used by government institutions to fulfil regulations, organizational responsibilities, or conduct audits.
Apart from the automation process and spend tracking, there are also a couple of other benefits to be enjoyed. Among these benefits include an improved buyer-seller relationship and ROI. When technology meets procurement, profit is guaranteed.
However, you need a good relationship with your customers to enjoy profits. Thanks to E-Procurement software, the customer can be improved significantly. While human needs to maintain an excellent relationship with their customers to benefit in their businesses, customer service is automated and does not need any physical relation.
In the current digital world, automation is fundamental, especially in procurement. If you are looking to improve your business, you should consider trying out the power of disruptive technology. Among some of the critical sectors that will be significantly impacted by this technology is procurement.
Businesses get to automate activities such as requisitions, allocations, asset management, request for quotations, reporting, invoicing, reporting, budget approvals, and many more. Besides, if you incorporate the services of e-procurement software, you get to enjoy better services.
E-procurement software is ideal for e-sourcing, contract management, and supplier management, which equips organizations with the required tools needed to conduct their businesses effectively and save costs.
Instead of waiting for approvals or struggling with purchase orders that can prove to be a daunting task, you can switch to an automated purchasing system. Apart from the e-procurement solution also saves time and helps eliminate problems by deleting human error.
Whether it’s the Internet of Things, blockchain, cloud computing or peer-to-peer connectivity, there is no doubt that when either of the technology is integrated a business, it has numerous benefits. At Bellwether, your procurement success is our biggest concern. We offer one of the most trusted cloud-based procurement software in the world. Try us today and let us make your business a success.