Digitization of purchasing processes strengthens companies' competitiveness
Purchasing accounts for at least 50% of a company's total costs, and in the automotive industry, it is as high as 80%. Optimizing purchasing processes through digitization can therefore be very beneficial.
Purchasing accounts for at least 50% of a company's total costs, and in the automotive industry, it is as high as 80%. Optimizing purchasing processes through digitization can therefore be very beneficial.
Optimizing purchasing processes through digitization can therefore be very beneficial.
This, however, raises the question:
What is the best way to start the digital transformation of purchasing?
Existing ERP systems lag behind the latest purchasing optimization methods. Many IT start-ups have recognized this gap in the market and developed digital purchasing platforms. These are built on the internet, use cloud technologies, and complement ERP systems with the most effective purchasing methods.
However, these platforms come at a price that not every entrepreneur is willing or able to pay.
Our goal was to enable the digital transformation of purchasing for small and medium-sized businesses with limited budgets, which is why we developed the Promitea cloud system based on the following principles:
- focusing on essential functions, thanks to which more than 80% savings are achieved with 20% of the costs
- Small and medium-sized enterprises do not need the intervention of an external consultant; they can quickly implement the Promitea system with their existing employees
- The return on investment in the implementation of the project is over 500% in the first year of operation!
The successful integration of Promitea system functions is now taking place not only in small and medium-sized enterprises, but also in companies with annual turnovers of several billion. How did we achieve this?
Purchasing can be divided into the following areas:
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Strategic purchasing: applies to items of type A in the well-known ABC analysis and the most important suppliers.
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Operational purchasing: focuses on so-called key items (type B items) with high unit prices or large purchase volumes
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Catalog purchase: intended for C-type items – standard items
Promitea offers the following specific methods for these areas:
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SRM for strategic purchasing
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Sourcing for operational purchasing
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Procurement for catalog purchasing
The introduction of digital transformation in purchasing opens up opportunities for further optimization.
The data obtained using the above methods can be used to systematically improve purchasing tools. This leads to the improvement of the purchasing process and strengthens the role of purchasing within the company.
Why is saving money no longer enough? Most of us who started out in purchasing in the last century remember the heroic tales of brilliant managers who managed to reduce costs by tens of percent through a combination of market power, toughness, and cunning. In this golden age of cost killers, purchasing was judged almost exclusively by parameters such as hard savings, acceleration of the purchasing process, reduction of administrative costs, and reducing the number of buyers. Unfortunately, hard savings cannot be made indefinitely.
Digital procurement is changing – flexibility, the cloud, and mobility are now key.
When people talk about the impact of AI, most companies think of sales, marketing, or internal business processes.
How many times have you looked for a quote that “must be somewhere,” or lost track of who’s supposed to approve the tender?
Return on investment within the first year of project implementation.*
*The ROI estimate is based on real data gathered from our clients and their successfully completed projects.
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