Why automating procurement makes sense

The last 18 months have thrown global markets into chaos, creating challenging conditions that have changed the way we’re sourcing and buying goods. The fluctuations in the market have lead to an increased need for speed and agility in the supply chain. It means that companies need to make decisions within days, sometimes within hours. Long lead times are now a luxury that most companies don’t have.

Fortunately, this is where tools like automation can help. It can be used to manage the administrative side of the P2P cycle – such as RFQs, RFPs and invoicing  – as well as the analytic side such as gathering data on spend, performance and key KPIs. I-Tel’s Melvin Gauci explains.

“Automation improves the speed and accuracy of administrative tasks. It means that execs are able to spend less time on labour-intensive paperwork and more time working on tasks on that create or add value to the business. This is especially true where data is used to inform buying strategy.”

The need for speed and time is prescient. In 2019, AIIM found that nearly 50% of organisations were operating 75% of procurement processes manually. It’s a statistic compounded by a genuine need for better insight into the way supply chains are performing.

From the start of 2020, around 36% of organisations have lost revenue because of supply shortages, while a further 11% have had brand damages directly from supplier issues. This is dovetailed by 41% needing to expedite shipping to keep critical lines moving and inventory levels at a healthy level. So what role could automation play?

Better data equals better buying

Insight generation and risk reduction can be equally as time consuming and labour intensive as administrative tasks. The ability to discern meaningful trends and identify insight from data is made very difficult by the volume and variety organisations generate each day. And, because data is most valuable to an organisation when it is well organised, integrated and enriched, it is increasingly falling under the purview of automation.

“Data is most commonly used in procurement to gain visibility and improve the accuracy and speed of decisions,” Mel explains. “So for example, your spend data and inventory data can automatically be harnessed to make recommendations about how to act in the market in the future.

“By evaluating stock levels, demand across categories and global availability, companies can buy what they need in the right quantities and ahead of time. This helps them to avoid costly shortages, or paying over the odds when demand outstrips supply.”

As market uncertainty and volatility continue, the ability to forecast and plan for fluctuations in demand and availability will be crucial, as will the time and money it saves organisations. Long-term, it helps organisations to create agile and sustainable supply chains that are able to flex with market conditions.

“Essentially, using automated data and reporting functions allows you to mitigate risk and control costs at the same time,” Mel adds. “While trading conditions remain difficult, there’s a real need for procurement to do that – it’s necessary to remain agile. If they can do so, then when conditions stabilise they’ll be in a very good position to optimise strategy – and of course, automation is a crucial part of that.”

itelgroup.co.uk

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Gareth has over 19 years’ experience in commercial procurement contract management across both public and private sector. Holding senior positions at the Ministry of Justice and Turner and Townsend Gareth has overseen several multi million-pound contracts.

Guiding I-Tel in best practice and sustainability while offering practical solutions to steer our procurement team towards red tape reduction and compliant, efficient services.

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Managing Director and founding partner at I-Tel Group. Mel has been instrumental in transforming the business from a start-up cartridge manufacturing facility to an innovative forward thinking procurement company.

With 15 years at the helm and in depth knowledge of I.T. infrastructure and data analysis I-Tel Group is today one of the latest key players in the indirect procurement space.

A co-founder from the outset Andy has headed the operations team for I-Tel group. An engineer by trade Andy has a vast experience in manufacturing, logistics and warehousing.

Overseeing the day to day complexities of our hybrid model and ensuring all the individual parts function to produce the seamless highly efficient business model we see today.

Paul has over 30 years’ experience in B2B sales in both the public and private sector and heads up our client services division. Overseeing high value public and private sector contracts Paul has in depth knowledge of the industry.

Key contact to senior management and C suite clients with a problem solving, customer service excellence ideology.

An impressive background with blue chip companies Dee is a former global B2B Commercial manager for Dyson. A proven track record in marketing and communications Dee is responsible for I-Tel’s client onboarding and messaging.

With huge experience in strategic international campaigns and working effectively in cross-functional teams Dee brings strong commercial acumen alongside an excellent ability to interact and influence at all levels.

James is a fellow of the institute of chartered accountants and has held senior positions with PwC and most recently Azets. He plays a pivotal role in providing financial direction and guidance for integrated solutions.

Experienced in dealing with group reorganisations, acquisitions and disposals and has significant experience of working with companies under UK GAAP, US GAAP and International Financial Reporting Standards (IFRS).

Gareth is a qualified, senior commercial solicitor with 30 years’ experience. As counsel to the directors Gareth brings a wealth of experience to enhance I-Tel’s legal compliance and ensure supply chain legitimacy.

Overseeing all our commercial agreements and supporting the individual requirements of our clients, Gareth brings tremendous credibility to the whole organisation.

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In iaculis, est ultrices interdum semper, lorem sapien consequat elit, nec viverra odio justo et dui. Quisque sed rutrum quam. In suscipit velit nec finibus sodales. Orci varius natoque penatibus et magnis.

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In iaculis, est ultrices interdum semper, lorem sapien consequat elit, nec viverra odio justo et dui. Quisque sed rutrum quam. In suscipit velit nec finibus sodales. Orci varius natoque penatibus et magnis.

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In iaculis, est ultrices interdum semper, lorem sapien consequat elit, nec viverra odio justo et dui. Quisque sed rutrum quam. In suscipit velit nec finibus sodales. Orci varius natoque penatibus et magnis.

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In iaculis, est ultrices interdum semper, lorem sapien consequat elit, nec viverra odio justo et dui. Quisque sed rutrum quam. In suscipit velit nec finibus sodales. Orci varius natoque penatibus et magnis.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer a pharetra ante. Sed non porttitor purus, vitae pretium erat. Proin dapibus dapibus sapien, in euismod elit venenatis at.

In iaculis, est ultrices interdum semper, lorem sapien consequat elit, nec viverra odio justo et dui. Quisque sed rutrum quam. In suscipit velit nec finibus sodales. Orci varius natoque penatibus et magnis.

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In iaculis, est ultrices interdum semper, lorem sapien consequat elit, nec viverra odio justo et dui. Quisque sed rutrum quam. In suscipit velit nec finibus sodales. Orci varius natoque penatibus et magnis.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer a pharetra ante. Sed non porttitor purus, vitae pretium erat. Proin dapibus dapibus sapien, in euismod elit venenatis at.

In iaculis, est ultrices interdum semper, lorem sapien consequat elit, nec viverra odio justo et dui. Quisque sed rutrum quam. In suscipit velit nec finibus sodales. Orci varius natoque penatibus et magnis.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer a pharetra ante. Sed non porttitor purus, vitae pretium erat. Proin dapibus dapibus sapien, in euismod elit venenatis at.

In iaculis, est ultrices interdum semper, lorem sapien consequat elit, nec viverra odio justo et dui. Quisque sed rutrum quam. In suscipit velit nec finibus sodales. Orci varius natoque penatibus et magnis.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer a pharetra ante. Sed non porttitor purus, vitae pretium erat. Proin dapibus dapibus sapien, in euismod elit venenatis at.

In iaculis, est ultrices interdum semper, lorem sapien consequat elit, nec viverra odio justo et dui. Quisque sed rutrum quam. In suscipit velit nec finibus sodales. Orci varius natoque penatibus et magnis.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer a pharetra ante. Sed non porttitor purus, vitae pretium erat. Proin dapibus dapibus sapien, in euismod elit venenatis at.

In iaculis, est ultrices interdum semper, lorem sapien consequat elit, nec viverra odio justo et dui. Quisque sed rutrum quam. In suscipit velit nec finibus sodales. Orci varius natoque penatibus et magnis.

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