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A common thread among the conversations we’ve had recently with senior procurement practitioners tells of the extent to which attitudes towards risk have changed over the past decade. According to one procurement leader we spoke to, all that changed around 2020. That statement couldn’t be less true today. And, frankly, it does.
This guide breaks down the key procurement technologies in use today and the trends reshaping the future, such as AI-driven sourcing, predictive riskmanagement, and deeper integration across the supply chain. Your procurement technology platform should help unify data and processes across tiers to avoid disruptions.
Procurement and supply chain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. Misaligned priorities, siloed systems, and unclear ownership can directly impact key performance indicators like cost savings percentage and procurement cycle time.
Enterprise procurementteams face growing pressure to deliver strategic value – managing supplier risk, ensuring compliance, and supporting sustainability – all without sacrificing speed or control. This blog explores the most common challenges in digital procurement and the capabilities that matter most.
At Ivalua, we’ve helped some of the world’s most complex organizations transform their procurement operations, giving us deep expertise in what works – and what doesn’t. In this post, we’ll break down proven strategies to help you streamline processes, improve visibility, and take back control of your procurement stack.
As Procurementteams are tasked to do more with less in an increasingly complex and uncertain market, digitization has become a must. Procurement leaders have increasingly turned to Spend and Supplier Management platforms to improve decision-making, efficiency and collaboration. What is Total Economic Impact?
Key steps for e-procurement transformation Step 1: Strengthening procurement processes before automation Automation is only as effective as the processes it supports. Many organizations attempt to digitize broken procurement workflows, which only accelerates inefficiencies.
Procurement and purchasing are often used interchangeably, but they serve distinct roles within any successful organization.While both involve acquiring goods and services, their workflows, objectives, and impact on enterprise riskmanagement differ significantly. What is Procurement?
Technology is a powerful enabler of finance-procurement collaboration, bridging gaps in spend visibility, cost control and data integration. Without the right tools, procurements contributions to financial strategy can remain disconnected from budgeting, forecasting and riskmanagement.
Modern procurement needs have far surpassed transaction management; procurement is now a critical component in driving strategic value across businesses and AI has become a key tool in procurementteams back pockets. Maintenance, Repair and Operations (MRO) is also benefiting from AI.
Tracking performance over time is key to measuring the business value the collaboration is delivers. However, procurement plays a critical role in reflecting cost-saving initiatives, supplier contracts and spend management efforts in financial statements and budget planning.
This week, we examined how procurement can structure its collaboration with finance, and now, we turn to see how that collaboration can work in practice. Bridging the gap between finance and procurement is not just about recognizing misalignments. Assessment criteria: Are procurement-led expenses fully visible in financial planning?
They can proactively identify risks, optimize processes in realtime, and even negotiate supplier contracts without human oversight. These AI agents leverage real-time data, predictive analytics, and generative AI to enhance resilience, reduce costs, and improve overall efficiency in AI-driven supply chain resilience.
A review of the key elements in supplier management for manufacturers and how Source-to-Pay procurement technology can support the journey towards supply chain resilience and agility in times of crisis. As the COVID-19 pandemic disrupts global supply chains, procurement organizations around the world are scrambling to react.
How to gain visibility and control of your indirect spend. How strategic sourcing, cost management, and cost avoidance strategies can be applied to indirect spend. 4][5] Supplier Portals Enhance Collaboration: Digital supplier portals are now in use across 35% of procurement platforms.
These procurement technologies empower teams to move beyond traditional methods, using data-driven insights for smarter sourcing, demand forecasting, and riskmanagement. Predictive AI, on the other hand, uses historical data to forecast potential disruptions, price changes, and supply chain risks.
Externally, risk and compliance obligations mount, supply chains are stretched and stakeholder expectations broaden. Procurementteams are spread thin and have to manage everything from basic sourcing to board-level ESG compliance. From there, workflows adapt in realtime. Policy enforcement becomes dynamic.
Traditional procurement methods can lead to inefficiencies, delays, and cost overruns. With technology-driven solutions, governments can: Enhance Transparency AI-powered procurement systems ensure greater visibility, reducing the risk of fraud and inefficiencies.
The guide is an invaluable tool for anyone thinking about starting or actively undergoing a digitally-enabled procurement transformation. All of the phases are peppered with real-world case studies from the people who have been in your shoes; so you dont have to step into the same holes theyve already avoided!
This is where strategic sourcing professionals spend most of their time, communicating directly with their top suppliers through an SRM program , and using cutting-edge procurement software to analyze spend and track risk. It's decentralized by buyers in the business (not procurement people). Next is the tail.
In this article we’ll review how supplier management capabilities in Source-to-Pay technology can free-up and enable a manufacturer’s direct material procurementteam to do what they do best to ensure the supply chain remains resilient and agile: be creative and strategic. Managing a Complex Network of Direct Material Suppliers.
Working within a resilient global supply chain results in complexities around basic matters like communication, time zones and languages, along with more challenging aspects like riskmanagement, compliance and sustainability. This helps companies adhere to existing guidelines and be aware of potential risks before they emerge.
Impact on PO Automation & Collaboration: Difficulties in real-time data exchange for PO confirmations, shipment tracking, and pricing updates. Solution Trend: Increased use of AI-driven procurement tools that enable automated order matching, supplier self-service portals, and real-time PO updates.
With automated systems, purchase orders can be generated based on predefined criteria, such as inventory levels or specific triggers, ensuring timely and accurate procurement. Real-time tracking and reporting capabilities allow organizations to monitor the status of purchase orders, deliveries, and payments.
Analytics and insights from procurement data were minimal. 20152020: Procurement Gains Strategic Recognition Emergence of Strategic Sourcing : CFOs began to recognize procurement’s role in driving long-term value through strategic sourcing, supplier relationships, and riskmanagement.
While it may not seem as strategic or high-profile as long-term sourcing deals, operational procurement is essential. It ensures that every team has the right resources at the right time, without delays or extra costs. What is the goal of operational procurement? is made after the necessity has been determined.
Enhanced Adaptability to Dynamic Environments Challenge : Traditional equation-based models fail to respond to real-time disruptions (e.g., Example : Agents from a manufacturer and Tier 1/2 suppliers jointly resolve component shortages by redistributing inventory in realtime. 3-way invoice matching).
SAP: Agentic AI Role: SAPs Joule AI in S/4HANA Cloud uses agentic capabilities for procurement tasks (e.g., It aims for 500+ AI skills by 2025, enhancing real-time decisions (Forbes, Jan 21, 2025). SIDE NOTE: What Self-learning algorithms are they using to analyze suppliers, e.g., historical and real-time?
72% of procurement leaders say vendor data is scattered across tools, emails, and spreadsheets. This statistic shows a real and common problem in many companies today. This makes it hard for procurementteams to find what they need quickly, and even harder to manage vendors in a smooth, professional way.
ChatGPT Inflation refers to the general increase in prices of goods and services in an economy over time, resulting in a decrease in the purchasing power of money. These indices track the average price changes of a basket of goods and services over time. What is inflation?
Hansens agent-based Metaprise Model directly addresses the core concerns of Chief Procurement Officers (CPOs) by combining human-AI collaboration, real-time adaptability, and ecosystem-wide integration. Continuous Learning: AI agents refine workflows using real-time market data, closing gaps in analytics and automation.
This content does not express the views or opinions of Spend Matters In our previous installment on Spend Matters, we discussed the rapid evolution of Supply Chain RiskManagement happening within procurement organizations. And so it should.
is a leading AI-powered platform specializing in third-party riskmanagement, compliance, and supplier lifecycle automation. AI-First Automation: AI is built into every step, simplifying workflows, automating processes, and delivering real-time insights for compliance, onboarding, KYC/AML, contract management, and ESG initiatives.
Importance of RiskManagement in ProcurementProcurement plays a critical role in the success of any organization, as it involves acquiring goods and services necessary for business operations. Understanding ProcurementRisk A. Introduction A.
Successful strategic sourcing often results in process optimization, cost management, customer satisfaction, riskmanagement , increased sustainability and other benefits. For example, the IBM Sterling Transaction Manager automates manual transactions between businesses and suppliers.
Global Reach, Real Impact Participants and speakers come from over 50 countries. Builds global community around procurement digitalization public sector, corporate, academia, and NGOs. Startup Acceleration & Visibility Provides a springboard for companies like Cirtuo, DeepStream, Archlet, Kodiak Hub , and ORO Labs.
CTA April 28, 2023 | | Supply Chain by Vishal Patel Cost, Risk, and Sustainability. The question is, how do you balance all three while maintaining continuous operations and generating revenue at the same time? Roach believes that when it comes to ESG, there’s no time like the present. People just need to get started,” she said.
Ivalua Spend Management Insights [ivory-search] A Balancing Act: Drive Sustainability while Managing Cost and Risk April 27, 2023 | | Supply Chain by Vishal Patel Cost, Risk, and Sustainability. The question is, how do you balance all three while maintaining continuous operations and generating revenue at the same time?
Indirect Procurement Indirect procurement covers support services and materials that enable institutional operations. While less visible, these procurement areas are crucial for maintaining a functional educational environment. Strategic Procurement Strategic procurement goes beyond transactional purchasing.
How better management in AP can give you better flexibility for cash flow management. Tools like PLANERGY enhance supply chain resilience by providing real-time tracking, data-driven insights, and streamlined communication with suppliers. This process involves multiple moving parts.
In my experience Total Cost of Ownership ( TCO or TCOO) models typically include some combination of the following elements: Unit price (Always the first item) Takedown rate performance Payment terms Freight and Logistics terms and transfer of ownership Lead times (order, delivery, replenishment) Other Parameters (eg.
Enhancing Supplier Performance Management By simplifying performance monitoring, reducing risks, and providing actionable data AI helps procurementteams form stronger relationships with suppliers.
In order to save money, streamline operations, and stay competitive, procurement leaders need to jump on the technology bandwagon. Thats where AI-driven predictive procurement is transforming the game. Todays procurement must not only shift from reactive to proactive , it must also be predictive. You can unsubscribe at any time.
Nonetheless, the time savings offered even just by classifying half of the line items is a huge amount of work saved. The Category Manager or Data Analyst can eliminate a huge chunk of work thanks to automation. Indirect materials (typically one-time or infrequent spend, such as office supplies, furniture). Maverick spend (i.e.
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