We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Five technologies that will transform procurement
Forward Thinking

Five technologies that will transform procurement

June 24, 2015
Supply Chain Quarterly Staff
No Comments

A new report from the management consulting firm Accenture predicts that in the next five to seven years innovative digital technologies will revolutionize how procurement is conducted. According to the report, Procurement's Next Frontier: The Future Will Give Rise to an Organization of One, "digital disruptors"—such as cloud computing, analytics, and the industrial Internet of Things—will allow organizations "to gather and analyze more and richer real-time data to drive better, smarter, and more accurate decisions." The most successful companies will use this as a catalyst to question everything procurement does, even such core tools as the purchase order, the report says.

The report's authors, Kai Nowosel, Abigail Terrill, and Kris Timmermans, predict that the procurement organization will use digital technologies to create an IT infrastructure based on the following five "apps":

  1. Virtual company mall: This cloud-based set of virtual "shops" is a site where internal customers can select goods and services. These selections will be guided by business logic based on a company's purchasing policies, preferred suppliers, and contracts.
  2. Supply analytics: Through a standard dashboard, both procurement and business users can look at data-driven analytics and interpret them to solve specific procurement problems or to answer questions.
  3. Virtual supplier room: In this virtual space, company representatives can interact and collaborate with strategic suppliers, sharing insights and ideas.
  4. Virtual category room: This application allows category managers to keep track of in-process projects.
  5. Supplier network: With this IT platform, a company will be able to connect seamlessly with its supply market through the other four applications.

These technologies will enable procurement to create a hybrid organizational structure, halfway between the old decentralized model, where procurement was scattered among business units, and the newer, centralized procurement model. Under this structure, some procurement professionals will be "embedded" within the business units and focus on applying procurement knowledge to specific business issues. This group then connects back to a smaller, central decision-making team that deals with business strategy, global demand and supply, policy, compliance, and global strategic supplier management.

The full report can be found here.

  • Related Articles

    Ten ways the manufacturing supply chain will transform itself in 2016 (and beyond)

    Procurement gets smart, adds greater value over the next five years

    Three innovations that will change transportation

Recent Articles by Supply Chain Quarterly Staff

Freight sector missed the boat on strong U.S. economy in Q3 and Q4, FTR says

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • Five levers to build a resilient supply chain

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing