E-procurement solutions for your business: The why and the how
E-procurement solutions for your business: The why and the how
Most procurement leaders agree that going digital is the best way to stay ahead. Digital transformation in procurement is expected to touch 72% by 2025. Understandably, many industry leaders worldwide are investing in e-procurement solutions. Short for electronic procurement, this practice involves acquiring and selling products and services between businesses over the internet.
For midsize organizations, the incentive to embrace electronic procurement may be revised because of other pressing challenges. For example, cash flow issues, the pressure to innovate and the need to expand the customer base can all put procurement transformation at the bottom of the priority list. But there are many benefits of digitization in procurement today.
Top reasons to embrace digital procurement
- Cost savings and margin maximization
PwC reports that nearly 70% of companies adopt digital procurement to save costs. This is a reasonable incentive to switch to e-procurement because you can save operational bandwidth, consolidate vendors and even switch to alternate vendors to optimize outlays. Additionally, reduced paperwork and eliminating unnecessary steps in the purchase process, such as making multiple copies of documents and duplicating manual data entries across different branch offices, can also cut costs and improve margins.
2.Reduced dark purchasing
Dark purchasing makes it harder to track who requests what inventory and why. This is a common issue in areas like MRO in procurement, which can be less organized than other areas of the supply chain. E-procurement can make tracking purchase requests and supplies easier, thus eliminating dark purchasing.
How to effectively integrate e-procurement into your business strategy?
There are many steps you can take to digitize your business purchases. Here are two such crucial strategies that can be great starting points.
- Implement an e-procurement software
E-procurement software helps your business convert the entire purchase process from manual to electronic. As a result, inventory management, tracking, invoicing, order fulfillment and vendor management are more streamlined.
2.Utilize an e-catalog for smarter procurement
E-catalogs make purchases more transparent and eliminate many roadblocks associated with manual catalogs. They even make real-time inventory updation possible and reduce gaps in communication with your vendors. Furthermore, e-catalogs also give you all the information about the products or services you need to procure in one place.
Revolutionize procurement for your business: Upgrade to e-procurement today.
E-procurement can transform your organization’s entire procure-to-pay cycle for the better. With the right digital procurement strategies, your business can cut costs, maximize margins and streamline the supply chain.
This is especially important for midsize organizations keen on expanding into more extensive frontiers. If your organization belongs to this category, Moglix Mid-Market Solutions can streamline MRO procurement and help address supply chain challenges more effectively.
To digitize your procurement and save big, you need to send us your business query at info@moglixbusiness.com.
Are you looking to streamline your procurement process and gain 100% visibility over indirect spending?
Then look no further! Download the case study now
3 must-have skills for procurement leaders in 2023
3 must-have skills for procurement leaders in 2023
Given that the pandemic stresses supply chains worldwide, upskilling and reskilling are extremely relevant in this volatile environment. A recent McKinsey survey reveals that around 90% of businesses agree that reskilling can help revive and digitize supply chain management.
Rebuilding and strengthening enterprise procurement needs to be prioritized in the post-pandemic market for businesses keen on future-proofing their operations. As a CPO, procurement leader, or procurement professional in today’s world, upskilling can help you lead this change. Here are three essential skills you need to have to be an MVP in your company’s procurement strategy:
1.Adopt a digital-friendly approach
Around 77% of companies are already equipped with digital S2P and P2P procurement solutions. The new world is embracing accelerated digitization to keep pace with consumer expectations. However, procurement, a critical business vertical, can hardly be left behind. You can also help your business join this coveted category by picking up the necessary skills to fastrack digital sourcing.
2.Prioritize vendor relationships
Procurement departments in only 24% of companies today prioritize supplier relationship management. Sadly, most procurement teams have no solutions for supplier performance management (SRM). Building better partnerships with suppliers can be pivotal in overhauling your company’s SRM strategy. Robust supplier relationship management also future-proofs enterprise procurement for your business.
3.Put risk management in the spotlight.
As a contemporary procurement leader, risk management is an invaluable skill that will pave the way for a better and more prepared future. Supply chains today surpass borders and time zones. However, the downside is that global supply chains are also vulnerable to environmental, economic, and geopolitical risks. You need a solid risk management plan to risk-proof your company’s procurement strategy. Ensure that it encompasses vendor selection and management, contract management, sourcing delays, and procurement automation.
Give your business an edge with the best-in-class procurement solutions.
Embracing end-to-end digital transformation in procurement will be a significant value driver for your company. This is particularly true if it’s a mid-market firm/organization with its sights set on expansion in the coming year. Upgrade your MRO procurement and other aspects of sourcing with Moglix Mid-Market solutions for optimal enterprise procurement. To learn more about transforming your procurement strategy, write to us at info@moglixbusiness.com.
SIMPLIFYING PROCUREMENT WITH MOGLIX MID-MARKET
SIMPLIFYING PROCUREMENT WITH MOGLIX MID-MARKET
When it comes to achieving sustainable business growth, procurement is a crucial piece of the puzzle for organizations across industries. Yet, it is often misaligned with the core goals and objectives. Enterprise procurement is also vulnerable to various pain points, like ineffective management of costs, mismanagement of the vendor/supplier system, and difficulty in procuring scarce supplies and its untimely delivery patterns.
There is also the issue of over-reliance on manual processes, especially in MRO (Maintenance, Repair, and Operations).
While a single solution may not fit all or address each pain point individually, an experienced digital supply chain solution provider and MRO aggregator can bring about a massive change in the way procurement works in your company.
The Moglix Difference
Moglix is one such procurement and supply chain partner that leverages on-the-ground experience with advanced technology capabilities to digitize procurement, logistics, financing, and other related functions. The result is a unified system that seamlessly manages the workflows while eliminating errors and the need for manual intervention.
More organizations are realizing the benefits and reaping the rewards of digitization in their supply chain, logistics, and MRO functions. Tangible improvements led by Moglix Mid-Market include:
- Reduction in TAT in different procurement-related transactions
- Integration of different legacy systems into one centralized system
- Harmonization of processes and ways of workings across different units of the organization
- Digital tracking, reporting, and governance with 100% visibility
- Anywhere, anytime accessibility through a cloud-enabled web platform and mobile app
- End-to-end procurement of MRO products across 50+ categories
Proven Use Cases of Moglix Mid-Market
These are not abstract statements but proven, tangible benefits provided using the Moglix Mid-Market system.
A global diversified heavy engineering and construction OEM desired to build an efficient supply chain that had 50+ suppliers for procuring 30+ categories of line items. The disparate legacy systems create a 2-4 days TAT in receiving offers/quotes from suppliers with another 2 weeks in the actual delivery of materials. In their current scenario, the monthly procurement spend was over ₹ 45 Lakhs per month.
Through tech-enabled transformation and consolidation, Moglix’s Mid-Market digital procurement solution was able to bring all the various vendors onto a single platform with a 50% reduction in TAT for receiving quotes for ad hoc items with only 30 mins needed for the cataloged ones. The TAT for delivery of goods was brought down to a mere 4 days. Apart from enhanced process efficiency, high visibility, and organized governance, the monthly spend was reduced drastically to approximately ₹ 20 Lakhs per month (less than half of the original).
Digitize Your Procurement And Save Big
Procurement transformation is a journey and requires a partner to hold your hand through each step in it. Contact us to know how you, too, can simplify procurement and fix supply chain challenges like other pioneering organizations.
Just send us your business query at mmsales@moglix.com.
Challenges And Opportunities For Procurement Professionals In The Current Scenario
Challenges And Opportunities For Procurement Professionals In The Current Scenario
Is your business facing procurement challenges? Are the supply-side constraints causing a major headache to your procurement team? If the answer to the aforementioned questions is yes, you are not alone.
Every business is dependent upon its partner ecosystem to function with a high degree of efficiency, and there is no department of an organization that is immune to the ripple effects created by disruptions, external and internal alike. As far as disruptions go, the past few years have presented unprecedented challenges to businesses, particularly on the procurement front.
The Bottlenecks For Procurement Professionals
Managing procurement for an organization is no easy feat. There are numerous challenges for procurement professionals, including vendor management, MRO (Maintenance, repair, and operations) spending, and risk management. Here are some of the key challenges being faced by procurement professionals across the globe
- Supply Side Issues: One of the foremost challenges for procurement teams is supply-side constraints. From the identification of the right vendors to securing their services and maintaining a healthy and sustainable business association, each facet of vendor management is ridden with potential bottlenecks. If there is one thing the pandemic has taught procurement professionals, it is that having a robust supply chain is a massive asset and one that needs consistent effort.
- Indirect Procurement Costs: A key facet of the procurement costs of any business is the spending on MRO categories. Due to its low proportion in the overall operational cost, though, MRO in procurement often takes a backseat. Since MRO supplies are critical to the day-to-day functioning of a business, their optimal management is pivotal.
- Data Visibility Constraints: Another key challenge for modern-day procurement professionals is data analysis and management. It is no secret that data drives informed strategic decision-making and enables businesses to make the most of their potential and opportunities. There is, however, a marked lack of sufficient and relevant data management and visibility, particularly vis-a-vis vendor availability. This is one key area of improvement for procurement teams.
All of the aforementioned challenges are also massive opportunities for procurement professionals.
Transform Your Procurement Strategy With Moglix
If you are looking to optimize the procurement processes at your organization, we could be of immense assistance. At Moglix, we offer excellent procurement solutions to transform your business. You can choose from a range of solutions, including Moglix Marketplace, Moglix SME, and Moglix Business.
Contact us now and usher in the magic of data and digitalization in your procurement processes.