Future procurement - everything is automated

| 0 Comments
Procurement_technology.jpgProcure-to-pay (P2P), sourcing, contract management and other automation engines will be essential in 2020; they will be integrated up and down supply chains, fully adopted, providing full transparency and real-time insight. This is the consensus among Procurement Executives who responded to an Ariba survey on Procurement in 2020.

As Debbie Manos-McHenry, Chief Sourcing Officer for Huntington National Bank, envisions it:

• “Procure-to-pay systems will be open architecture, web-based, and able to interface with many systems within an enterprise and among its supply base;
• Routine purchase transactions will be done by end-users with little to no involvement from sourcing; systems will enforce appropriate compliance, workflow, and rules;
• Contract management and administration will be highly automated, using templates and collaborative tools in traditional red-lining of agreements between buyers and sellers;
• Workflow will enable end users to produce agreements that meet minimum criteria while exceptions will be escalated to sourcing; and
• Risk evaluation and assessment will be built into systems and processes (versus being ad hoc activities).”

“Managing purchase orders and invoices will be fully automated by 2020, even in the least developed companies,” agrees Javier Urioste, former CPO with several non-IT organizations. “So, too will processes for competitive sourcing and contracting. There will be certain exceptions, but, in general, all non-strategic, highly critical elements of the sourcing process can and should be automated.”

Roy Anderson, VP Procurement Services, Metasys Technologies, who has made a career of automating procurement, sourcing and supply chain operations in both manufacturing and services environments, agrees emphatically: “For the portion of the supply base that is not critical, procurement will put automation engines into place, get them working properly, and then get out of the way. Buying will be completely decentralized to the people who need goods and services.”

Where it makes sense, Anderson says, items will be available in catalogues. But other situations may require access to markets for real-time competitive bids. “End users will execute their own bids. Procurement’s role will be to set the automation engines up, then monitor and manage to make sure they continue to run.”

And while he believes there will always be value in procurement seeking creative ways to manage noncritical spending categories, Anderson expects that efforts in those directions will be “kept in perspective.”

The information in this article was sourced from the report ‘VISION 2020 Ideas for Procurement in 2020 by Industry-Leading Procurement Executives’.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Purchasing and Supply Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supply Chain
Purchasing and Supply ManagerThe CSIR has a vacancy ...More

Senior Manager Public Sector

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 Senior Manager Public SectorTotal Cost to Company: R1.1mil ...More

Senior Manager: Mining

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
Senior Manager: MiningTotal Cost to Company: R900k – ...More

SUPPLY CHAIN MANAGER

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
SUPPLY CHAIN MANAGER(Total Cost to Company R750k – ...More

Master Data Management Advisor

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 MASTER DATA MANAGEMENT ADVISOR(Total Cost to Company R750k ...More

PRO - Performance Reporting

  • >500 000 Permanent Procurement Consultant Procurement Management Projects / Category Management
PRO - Performance ReportingTotal Cost to Company: R800k ...More

PRO - Risk & Governance

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
PRO - Risk & GovernanceTotal Cost to Company: ...More

Supply Chain Site Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Supply Chain Site ManagerTotal Cost to Company R1mil ...More

Chief Financial Officer

  • >500 000 Gauteng Permanent Procurement Officer / Specialist
Chief Financial OfficerTotal Cost to Company R1.5mil – ...More

Process Engineer- WMS

  • <500 000 >500 000 Industrial Engineer Permanent Projects / Category Management Western Cape
Process Engineer- WMS(Total Cost to Company R350K – ...More

Forecast Analyst

  • <500 000 Analyst Permanent Procurement Management Western Cape
Forecast Analyst(Total Cost to Company R350K – R500K) Location: ...More

Group Category Manager: Indirects

  • >500 000 Permanent Procurement Management Projects / Category Management Western Cape
Group Category Manager: Indirects(Total Cost to Company R700K ...More

Group Category Specialist: Chemical

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Group Category Specialist: Chemical(Total Cost to Company R700K ...More

Sourcing Specialist - 3rd party

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Sourcing Specialist - 3rd partyTotal Cost to Company ...More

Global Procurement Lead (Processing)

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
 Global Procurement Lead (Processing)Location: JohannesburgTotal Cost to Company ...More

Global Supplier Performance Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Global Supplier Performance Manager Location: Johannesburg  Cost to ...More

Group Customer Service Lead

  • <500 000 >500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
Group Customer Service Lead  Location: Johannesburg As the ...More

Business Intelligence Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supplier / Business Development
Business Intelligence Manager Location: JohannesburgLead the development, implementation, optimization ...More

Group Procurement Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management
Group Procurement Manager Location: Johannesburg  A Global Organization ...More

Commodity Manager Packaging

  • >500 000 Commodities Gauteng Permanent Projects / Category Management
Commodity Manager Packaging  Location: Johannesburg Salary: R850k– R1.1mil ...More