For the longest time, procurement and supply management teams have focused on cost-savings and providing accurate supply for their businesses. More specifically, their value was primarily limited to efficiency (the minimization of cost for procurement services) and effectiveness (the maximization of business value). In recent years, there is an increased focus beyond price reduction, with concentration towards contribution to total cost of ownership (TCO), and the management of overall value and demand.
Today, it’s about the value experience: the optimization of procurement relationships, engagement and collaboration for employees, customers and suppliers. In doing so, start to consider ways procurement and supply management teams provide value to the rest of the organization, outside of cost cutting.
In order to understand the value of your process, you need top-level visibility into your supply and procurement processes with advanced data analytics capabilities. At a larger scale, there needs to be more alignment and transparency between customer metrics and the use of market intelligence. The most efficient way to take advantage of the varying sources of data currently available, is to put them on a cloud-based, digital network that incorporates a scalable platform.
Here are three ways a digital supply chain network will add value to your organization:
1. Gather better market intelligence in the world of constant change
2. Take advantage of better insight and predictive capabilities
3. Define customer metrics that are measurable
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