Procurement teams, saddled for years with outdated systems and capabilities, can now leverage digital as-a-service models to fast-track strategic performance.
As digital business services mature in the near term, subscribing to bot-enabled procurement can alleviate buyers’ transactional loads, freeing them for more strategic pursuits.
Many of today’s core procurement functions are becoming industrialized, shifting to digitally-enabled services that can be supplier-funded. And this is enabling leading companies to run procurement at half the cost.
Accenture Strategy sees the market moving to a source-to-pay, subscription-based service, coupled with business services that execute operational and transactional processes. More expensive, on-premise technology solutions will be replaced by these digitally powered services platforms.
For instance, a global energy company recently saved $2.5M annually by automating more than 100 procurement, finance and accounting processes, resulting in a 67 percent decrease in manual average handling time.
Companies can expect an IT cost reduction of 10 to 20 percent when they re-architect their IT footprint, rationalizing applications as they move to an as-a-service model. They can achieve an additional 10 to 40 percent in savings through IT-enabled business optimization such as increased automation, self-service, and the working capital reduction implicit in an as-a-Service solution.
Moving to procurement as-a-service could be your next step. Here are pragmatic steps you can take.
Segment the work to be done by:
Refocusing your retained Procurement organization on higher value activities.
Standardizing roles, policies and processes.
Become leaner and more strategic:
Partner with key strategic suppliers to move to growth.
Staff skills differently.
Purge operational and transactional activities.
Create a buying experience that makes it easy to buy and
Put the end-user at the center of all design decisions.
Rationalize your digital landscape to avoid the patchwork quilt effect.
Partner with as-a-Service providers to ensure your technology needs are being met.
Move away from on-premise technology.