Procurement Technology Trends: An Overview
Technology has given ‘wings’ to the businesses to fly farther and faster than ever before. With the advancements in technology, there are transformative changes in the world of procurement. It has become more collaborative, and more technology driven than before. Read our blog further to discover the key procurement technology trends to watch out in 2019.
Procurement technology is a de facto platform for purchase teams in businesses to manage their procurement of goods and services, budgets and suppliers. It is divided into two parts; Procure-to-pay and Source-to-contract. It offers extensive visibility, integration, and controls to the enterprise.
Key Trends to Drive the Future of Procurement Technology
1.) Mobile, the Growling Engine of Technology
Currently, there is less number of procurement tools that allow mobile access in the marketplace. But, in 2019 it will become a big trend. According to research in 2018, there were 205 billion mobile app downloads. Businesses are now realizing the importance of mobile applications. It allows you to manage approvals, budgets, and purchase request anywhere and at any time. Here are some of the benefits it will bring:
You can make big decisions and do important stuff easily on the mobile anytime.
You can instantly upload and synchronize invoices by snapping them with your mobile camera.
Pipeline feature for mobile procurement will bring drastic changes.
2.) Digital Strategy in its Right Place
2019 has forecasted the rise of digital technologies and its positive impact on procurement. Businesses in 2018 were finally seen adopting cognitive procurement technologies such as Machine Learning, Artificial Intelligence, Big Data Analytics, and Robotic Process Automation. Now, in 2019 the usage of these technologies will increase. There are enormous benefits of digital technologies such as better market visibility through product innovation, automating procurement tasks and empowering C-suite in decision making. No doubt, businesses have understood the importance of digital procurement, but the question is, ‘are they moving in the right direction?’ Organizations need a proper strategy to take a leap from manual to digital transformation.
3.) Power in the Hands of the User
In recent years, spreadsheets were the backbone of procurement technology. In the year 2019, the most powerful procurement tools in the market are those which have the ability to craft a different world without the use of spreadsheets. We are now in a phase where the only use of spreadsheets is to organize and check information in CSV format so that it is readable in APIs and other microservices. This is one of the most popular procurement technology trends seen in 2019.
4.) Artificial Intelligence Systems on the Rise
This is one of the best trends to drive the future of procurement technology. In the year 2019, more and more businesses will adopt artificial intelligence in their process. Procurement teams will use intelligent bots to complete procurement task with minimal human intervention. Artificial intelligence will undertake numerous tasks such as managing large volumes of orders, negotiating with suppliers, updating the inventory list and so on.
5.) Risk Management
In 2019, procurement functions of organizations will be at the forefront to minimize risk. Procurement technology will be on the top to minimize the supply chain cost. It will bring innovation and technology interference to save cost.
With the advancements in technology, procurement is gaining strategic importance in business. The expectations from this function of traditional cost savings and focus on digital technologies are also increasing day by day. 2019 seems to be a year of opportunities for procurement technology. These procurement technology trends will surely turn around your business.