How can upstream procurement solutions help your procurement team become more strategic?
- 15 May 2018
Supplier management is complex and challenging, with many moving parts. Even before the COVID-19 pandemic, many organization leaders expressed concern they were not employing enough strategies to manage their supply chain and keep a close eye on their supplier contracts.
Of course, the pandemic has changed everything - particularly with regard to supply chain. Deloitte’s 2020 CPO Flash Survey offers some eye-opening statistics with regard to visibility into the process and leadership viewpoints on the way forward, post-pandemic. Of the CPOs and procurement leaders Deloitte polled:
- Only 50% indicated that they had high or very high visibility into their Tier 1 suppliers.
- 90% said that their visibility into their extended supply networks was either moderate or very low.
In terms of priorities, two important themes emerged among respondents: the desire to bolster their supplier management capabilities and the recognition of advanced technology as a crucial element in enhancing business performance. With regard to the latter:
- Nearly 20% regretted not digitizing their supplier and contract management solutions sooner, especially given the challenges of the pandemic.
- 25% intend to incorporate advanced technology moving forward, in order to increase supplier visibility and to monitor risks.
Having the right strategies and tools in place can make all the difference in giving your procurement team better visibility into the supply chain and associated costs. Supplier management and contract management solutions can help your procurement team to know who their suppliers are, what they supply and to which locations, as well as reminding your supply chain managers of key dates like renewals, performance checks, and certificate expiration dates.
Upstream procurement can get out of control very quickly in any growing organization, but these eProcurement systems can enable the procurement team to get ahead and become a strategic function that minimizes supply chain risk, drives spend savings, and increases purchasing control.
More finance and procurement resources
Our library of case studies, guides and much more are here to help you become a better spend management professionalView all our resources