Over 60% of all companies do not use any digital tools in procurement
More than 60% of the companies do not use any digital tools for workflow assignment and/or supplier management. Many or rather most companies are still trapped in the Excel world. Using Excel as an e-procurement system brings several challenges.
You cannot talk about real-time collaboration when you work with Excel. It makes collaboration even harder. As soon as an Excel spreadsheet is used by several people, the inconsistencies and data loss are bound to begin. It requires a lot of commitment from users just to keep the file "clean".
A current survey by the German Federal Association of Materials Management, Purchasing and Logistics (Bundesverband Materialwirtschaft, Einkauf und Logistik e.V. - BME) clearly shows that the digitization of entire value-added and supply chains puts companies under enormous pressure. However, more and more companies are recognizing the necessity of using electronic solutions in purchasing, logistics and supply chain management.
The increasing digitalization also affects the procurement sector. Procurement describes all activities of a company that deals with the procurement of goods of all kinds from external sources. The primary objective is to ensure a reliable long-term supply at the lowest possible price.
The common name for an electronic procurement setup is "e-procurement". The ordering process is carried out via digital platforms using network technologies.
For a fast and efficient procurement, not only the re-ordering must be done automatically and digitally, but also internal processes such as accounting, or invoicing must be digitally interlocked with the procurement. This is the only way to react flexibly and agilely to delivery bottlenecks and failures.
The Corona-related delivery bottlenecks show: Many purchasing departments need to readjust their procurement strategies. In particular, the digitization of the procurement process needs to be promoted.