PROCUREMENT STRATEGY
How technology can help achieve lean procurement Vengat describes technology as a “ transformative force ” in the pursuit of a lean procurement strategy .
He adds : ” Proper implementation can help address obstacles and lay the foundations for success . This can be through proper use of data analytics , which can provide critical insights from large datasets into trends for better operational efficiency and planning .
“ With more procurement technology implementing artificial intelligence and machine learning , there are already opportunities to find a competitive advantage .
Vengat continues : “ AI and ML employ advanced algorithms to analyse historical data , predict demand patterns , optimise inventory management and enhance decision-making , bringing automation and efficiency to procurement processes .”
Despite the challenges , at least there are low-code or no-code platforms available
“Organisations can create a resilient , efficient and valuedriven procurement function aligned with broader business objectives ”
KRISH VENGAT N . VICE PRESIDENT , CONSULTING GEP that allow greater customisation without coding . These are also collaborative platforms , designed to improve coordination and communication , and offer predictive analytics to identify potential risks in a supply chain .
Vengat also identifies the growing value of cloud-based procurement solutions . “ They offer flexibility , scalability and real-time collaboration ,” he says . “ These platforms enhance procurement agility , accessibility and efficiency by providing a centralised and accessible digital environment for procurement activities .”
“ Technology acts as an enabler for lean procurement by streamlining processes , enhancing collaboration , providing realtime insights and supporting data-driven decision-making . Organisations embracing innovative technologies can gain a competitive edge in achieving efficiency , reducing waste and optimising their procurement functions ,” he continues .
How to implement the strategy For a company looking to establish a lean procurement strategy , there has to be careful planning , commitment and collaboration across the business . This involves technological , cultural and leadership considerations to give it a realistic chance of a successful outcome . This begins with all teams understanding the core lean principles , such as waste reduction , optimising processes and finding opportunities to continuously improve and reflect on performance .
Vengat believes the key to success lies with leadership and cultural change . “ Securing top leadership commitment to drive cultural change and set the tone
46 Dectember 2023