PROCUREMENT TECHNOLOGY
growing importance of ESG reporting . As a result , on-premises solutions risk becoming a limiting factor when it comes to scaling supplier data management as the volume grows .
“ By contrast , cloud solutions can be spun up – or down – to match need as it fluctuates ,” notes Hanson .
“ They can be accessed by any team when and where they are needed , rather than being tied to a particular location . They also make it easier to break down silos between different areas of business data , integrating multiple streams into a single platform .”
Factoring in the rise of generative AI , the two technologies are expected to significantly reduce selling , general and administrative ( SG & A ) costs and staffing . However , Hanson warns procurement teams must “ ensure their data foundations are right before they jump in ”.
He continues : “ That ’ s where having a cloud-based platform approach to data management comes in . Procurement teams need to ensure the foundations and controls for AI tools are robust before they use them . And they need to have full transparency of the data used to train any AI models they use .”
Where to begin with cloud adoption and the obstacles to avoid Most businesses simply don ’ t have the time or inclination to manage the kind of IT estate that ’ s required for supplier data management on a large scale .
But , as Hanson explains : “ Cloud services provide a scalable and flexible solution that frees up businesses to focus on improving their operations , benefitting from high-capacity , intelligent data management to streamline decision-making , and leaving the estate management to the professionals .”
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