Trick or Treat: Avoiding procurement and supply chain horror stories with digitalisation
Halloween is here and while there may be no actual ghosts, certain disruptions can haunt procurement teams. For example, unexpected delays, compliance issues and operational nightmares are some of the worst culprits.
From ghosting to nightmares before deadlines, here’s how digitalisation, powered by robust source-to-contract (S2C) management and e-procurement innovation, can help procurement leaders and their teams steer clear of these pitfalls.
Ghosting
When departments sidestep procurement by sticking to preferred suppliers or purchasing independently, they create inefficiencies, risk non-compliance, and miss potential savings. This internal “ghosting” leaves procurement out of the loop, hindering its ability to add value or secure optimal deals, resulting in limited spending visibility, fragmented processes, and lost optimisation opportunities.
Digital e-sourcing platforms address this by integrating internal stakeholders into a streamlined, transparent sourcing process. Clear workflows and an intuitive interface foster internal stakeholder participation, enhancing visibility, communication, and decision-making. This inclusivity and transparency prevent ghosting, keeping stakeholders engaged, ensuring procurement control, and driving strategic, efficient purchasing.
Furthermore, strong supplier relationships, grounded in communication, are essential for procurement. When suppliers go silent or delay critical updates, procurement teams face unanticipated delays, which can increase costs, impact revenue, and strain client relationships.
Digitalised Supplier Relationship Management (SRM) addresses these issues by setting clear expectations and enhancing supplier engagement. E-sourcing tools clarify deadlines, streamline workflows, and ensure precise communication, granting suppliers greater control over tasks and reducing misunderstandings. Features like bid pages, adaptive status updates, and simplified language further strengthen supplier partnerships, boosting efficiency and reliability.
The nightmare before deadline
The ultimate ‘chill down the spine’ for procurement teams is when an unexpected issue jumps out right before a major deadline. Without effective processes and adequate digitalisation, these surprises can haunt procurement teams more than they’d like, especially during seasonal peaks.
Adding to the fright, procurement teams are increasingly pressured to do more with less as prolonged economic pressures and rising workforce burnout rates strain resources. This makes it even harder to secure a reliable supply chain, control budgets effectively, meet tight deadlines and anticipate risks accurately.
When paired with AI and predictive analytics, S2C management takes risk mitigation to new heights, allowing teams to forecast demand, optimise inventory and automate time-consuming, repetitive tasks – leaving no room for the unexpected.
Additionally, e-procurement solutions enhance compliance and governance via automated tracking features that ensure transparency, align stakeholders and minimise the risk of regulatory non-compliance — avoiding any last-minute surprises that could come back to bite.
Trick-or-treat supplier data
Ensuring supplier compliance with ESG (Environmental, Social, and Governance) criteria is essential for procurement teams to uphold ethical, environmentally responsible and regulatory standards. When suppliers fail to meet these benchmarks or provide inaccurate data, companies face serious risks, including financial losses, regulatory violations and reputational damage. For example, recent news of modern slavery incidents in fast food chains and supermarkets underscores the importance of rigorous supplier vetting and management, even in today’s market.
Digitalised S2C management can embed ESG requirements and compliance checks through the entire procurement lifecycle, setting clear ESG criteria from the outset. This allows procurement teams to proactively integrate safe and ethical sourcing and environmental sustainability into every agreement with greater accountability and transparency. It also provides a safety net for procurement teams – giving them the confidence to proceed with contracts.
Plus, with innovative blockchain technology and AI-driven analytics, data transparency and accuracy are better than ever, giving procurement teams the power to make informed decisions based on secure, tamper-proof and verified supplier information, fraud risks and legal mishaps.
By embracing digitalisation through advanced S2C management and e-procurement tools, procurement teams can turn potential horror stories into streamlined, reliable processes — ensuring smooth operations and a supply chain built to last, with no hidden tricks.
