Procure-to-pay suites are integrated solutions that optimize the workflow to request, procure, receive and pay for raw materials and services across the supply chain process, saving costs and mitigating the risks. They comprise of transactional data flow to the supplier as well as necessary information to meet the actual order and the payment of the product or service.
In 2020, trending technologies will be more focused on improving procurement functions. Technological developments such as AI, RPA, and Machine Learning, will increase existing solutions performance and provide better procurement insights.
Supplier Risk Management
Effective supplier management tools enhance the true visibilityRis for buyers, eliminate uncertainties for procurement and enhance the trust between suppliers and buyers. Organizations obtain a better understanding of their suppliers by adopting an automated procurement solution. The available data can be transformed into predictive data helping to make smart decisions. Monitoring and analyzing compliance with suppliers ensures that approved suppliers can deliver quality products on time and at reasonable prices.
Data and Analytics
Inter-connected systems generate rich data for smoother supply chain experience. The knowledge generated offers valuable information in real-time and allows the organization to analyze the present state and plan for future proactively. Modern digital systems such as Artificial Intelligence (AI), Big Data Analysis, Cloud-based applications, Chatbots, Virtual Assistants and Robotic Process Automation (RPA) will offer additional value and be useful for gathering and analysis of previous supplier performance data and then assigning of contracts. Big data is one the most disruptive technologies in modern digital systems, that allows the collection and analysis of data from internal and external resource to enhance decision-making, supplier relations, risk management, and providing transparent and accurate analysis of the data possible.
Next-generation technology and automation
The procurement executives provide support in designing and implementing intelligent bots for having a minimal human intervention to complete most procurement tasks. Managing large numbers of orders, regular procurement operations, negotiations with low-value suppliers and updating inventory lists can be handled by AI. As data quality improves, automation becomes much more efficient. This helps to eliminate the manual back-end processes and empowers procurement executives to take more strategic decision, enabling them to make more tactical business moves.
Digital technology arrives with its own positive and negative consequences. The development of contingencies – from approval workflow to supply chain optimization, logistics and asset management – is simpler than ever with artificial intelligence-driven automation. Since procurement executives are increasingly relying upon technology to achieve maximum value and savings from the supply chain, it is necessary to secure these structures against manipulation, fraud, and destruction of data. Procurement organizations will face a greater number of cyber security threats in 2020. Organizations should therefore take measures to prevent cyber security attacks by securing their procurement departments and suppliers.
Some are the measure below for protecting against cyber-attacks:
- Safety risks in emails should be implemented within the system.
- Organizations should be required to work with suppliers to develop and ensure safety plans for both sides.