Benefits of Procurement Automation

How Procurement Automation Can Benefit Your Business With the rapid development of new technologies in the last decade, businesses in various fields have taken steps to implement process automation systems into their daily operations. Procurement processes are no exception, including automated Requests for Quotes (RFQs) and vendor contracting activities. Skeptics might see this as an attempt to decrease the need for human labor, but that’s far from the truth. In fact, automation only helps reduce the time and labor needed to perform some routine, repetitive processes. At the same time, it frees your staff to perform more complex and demanding…


3 Indirect Procurement Challenges

Despite keeping costs under control, many companies fail to achieve their desired level of profitability. This can happen because procurement departments are unaware of just how important indirect procurement is for running a profitable business. Understanding Indirect Procurement Indirect procurement, also known as indirect spend, represents the purchasing of goods – usually services and supplies – that help keep the day-to-day operations at a company alive. With direct procurement, the entire cost goes toward production, which is why companies are usually more aware of it. Indirect spend is somewhat invisible compared to direct spend because it helps keep everything running…


New Processes Needed

For many years, the internal processes for making purchases were fairly straightforward. An employee created a purchase form which was submitted to the procurement team and finance department. After receiving approval they could purchase what they had requested from any supplier and would submit the invoice to the department. Despite being an easy process in theory, decades of paper invoices and lack of oversite in addition to budgetary inconsistencies have created many systemic issues for procurement organizations. Spend has increased greatly and it is not uncommon for companies to have vendors registered with no actual history of purchases. Fortunately advances…


The Digitization of the Public Sector

Over the past few years, cloud-based computing and storage have been known as ‘the next big thing’ for companies spanning across all industries. It stands to reason that adoption of said technology has been rapidly expanding. The ‘cloud’ not only centralizes data to a secure location, but also allows read and write access to information with just internet access, and supreme collaboration among others. The growing prevalence of such technology has prompted various public, federal agencies, such as the Department of Defense, to procure contracts that will assist the agency with updating their current technology. The JEDI Contract The procurement…


Leveraging Advanced Analytics in Procurement

Here at FairMarkIT, we understand the importance of data in making informed decisions. Insight into the needs and wants of customers are better understood through usage statistics. Data is especially important to the procurement field, sophisticated technology that is able to harness the power of big data, such as machine learning, will be of ever growing utility. An article published by SourceToday highlights the importance that data prediction techniques will have in the future, especially for procurement and supply chain organizations. In fact, it is projected that data creation -- which is currently at 20 zettabytes -- will balloon to 160…


Skills for Successful Leaders in Technology

Great leaders excel in creating goals that are specific and compelling, to reach these goals they foster collaboration and innovation within their team. However, being a great leader isn’t one size fits all -  each industry and department comes with their own challenges and intricacies, and technology-dependent departments are no different. To be successful in technology, it is important that leaders: Delegate, delegate, delegate. Given the breadth of knowledge required to be successful in IT means that one person can’t do it all. Leaders need to trust their people and surround themselves with teammates who compliment their strengths, as well…


Solving the Procurement Communication Problem

The procurement department wasn’t created to be a communicator, it was created to be objective, analyze data and make decisions.But failure to communicate, can result in poor morale within the department, mistrust among vendors and negative branding within the greater company. In order for procurement to improve their standing in the communication world they have three central areas where they can focus: Start with your own department and create or evaluate your plan for communication. It’s important to take a look at the structure of your procurement department and identify who’s is currently responsible for communicating, who they interact with…


High Performance Procurement: 3 Questions for Procurement Leaders

Are you focusing on strategy or transactions? Regardless of internal department, it’s easy to get caught up in the day-to-day tasks, and in procurement that often means managing transactions.Procurement leaders who are able to take a step back and focus on making system wide improvements and evaluating the purchasing activities of a their company are more effective than those who micromanage transactions. Ultimately, a strategic procurement outlook will have an influence on the way that each transaction takes place as well as the way overarching plans are developed and implemented, leading to improved performance on all cylinders. Are you utilizing…


Technologies to Transform Procurement in 2018

I’m 40,000 feet in the air flying from Boston to Dublin. As I sit back in my seat with a Guinness in hand, I begin to consider the safety of my flight.  I start contemplating the various procedures required to fly the plane and feel myself thinking I’d be more comfortable with the auto-pilot navigating the plane than the captain and his crew.  It’s not that I don’t trust the skills and experience of the pilots; it’s just that I know that they’re limited by the constraints of human error and capabilities. No matter the profession, even the most experienced humans…


Digital Transformation in Procurement

Late in 2017, we called digital transformation one of the “ingredients for innovation” in procurement. But simply using Amazon Business for your supply purchases or optimizing your website for mobile doesn’t mean you have a digital procurement strategy. Here are some ways that changes in your strategy will transform the way your organization operates and thrives: Process Revolution Procurement leaders assume that digital technologies will transform the entire procurement operation, from overarching strategies to the most elementary procurement processes. Properly implemented, these technologies can help procurement increase everything from data analysis to collaboration and team engagement. When implementing digital transformation…