Advanced Technologies Bring More Efficiency to the Supply Chain while Reducing Costs

Procurement is the last frontier of technology utilization, and it is finally getting the attention it deserves as a value producer, rather than just a cost minimization function.
— By Cecil Perang

Historically, procurement has focused on cost minimization or reduction. It is just another way of the organization saying, "Get me the best materials or products for the lowest price." Technology has primarily been used to date to automate manual processes, like departmental and supplier ordering, issuing RFPs and purchase orders, and matching deliveries to orders and invoicing.

The introduction of advanced technologies is a game-changer because it enables procurement to take the leap across the divide, from cost management to value production. Technologies like artificial intelligence (AI), machine learning, and blockchain are enabling procurement to drive organizational efficiency, productivity, innovation, strategic planning, supplier perfor...

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