Future of Procurement: Disruptive Technologies

The new Procurement technologies

Marcell Vollmer focuses on the impact of new so-called “disruptive” technologies, such as connected objects.

The installation of sensors and the interconnection between production equipment, products and a warehouse allows the automation of order taking.

However, the reality of many businesses (large and small) is quite different. The staff still prints an invoice via a PC, puts it in an envelope, and sends it by post.

The envelope is opened and scanned upon receipt. And if data is not recognized by OCR, it must be entered manually... In short, it is impossible to be 100% efficient with a bad process from the start, hence the need for a disruptive tool.

But there is a lot of room for improvement for these types of organizations. According to Vollmer, the reduction of operating costs and the development of a sustainable economy are in sight.

But how can procurement capitalize on automation? It delivers two keys:

• By ensuring that the Purchasing Department keeps total control of the process. It will be from the beginning of the process (order) to its end (payment) at all levels.
• The cloud makes it possible to reduce complexity. Also, it reduces the overall cost of operation when several information systems coexist within organizations.

Dr. Marcell Vollmer (Chief Digital Officer at SAP Ariba): What if the future of procurement was now?