Technology Focus Vs. Process Focus
Why?
Many businesses and their leaders look for a quick reactionary fix to issues within their organizations. This can lead to looking at technology solutions in the marketplace as the latest and best solution to all their problems. Why does this not work?
Best in Class organizations solicit input from the staff that manages the related processes on what works and what is broken before they begin.
This does not mean that technology is useless—quite the contrary. Provided the formerly analog processes are aligned with a new digital paradigm through a comprehensive process redesign effort, digital technology, applied according to the new process design, should result in significant improvement and value added to the business.
However, the such redesign should be done by more than one department. Procurement is typically tasked with selecting the appropriate tool to solve the issue. Therefore, procurement must solicit input from every part of the business that touches on the process. Source to Pay technology is a prime example. Provided procurement views the process as a customer-focused process. Input would be obtained from order takers, requisition creators, purchase order creators, document approvers, contract writers, invoice processors, supplier vetting team, and the functional team that benefits from the spending. They would then solicit input from the traditional groups for governance, risk, marketing, and compliance. Note that even before the information is requested, a business imperative under an audit finding or strategic vision document should have been generated to indicate the c-suite support for the initiative.
The result of this exercise will provide a sound footing to ensure that whatever solution in procurement or finance is sourced; is done based on an updated vision that is genuinely based on a customer-focused process and provides the best fit digitally, using the latest automated control processes that eliminate waste elements that were causing all the major problems related to wasted time, motion, repeat processing, defects, and under-utilized talent present in the aging process.
If you would like to explore ways business process outsourcing (BPO) could help your business due to resource constraints and talent gaps, please contact to discuss how we can help meet your need.
Other Blog Articles
The Accurate Calculation of Employee and Consultant Costs Opens New Doors for Your Business
Cleansing Master Data for better purchasing and supply chain decisions
Know the blind spots when implementing Digital Procurement
Increase Adoption of Procurement and Payment Technology
Outsourcing of Sourcing and Procurement Processes
Top ten contract pitfalls to avoid
Role of a Category Management function of the future
Mastering Procurement: The 7 R’s to Success
Navigating the Waters: A Guide to Incoterms in Procurement & Supply Chain
Other Customer Success Stories
We helped our client reduce their past due payments from >40% to less than 5%
We have helped the Client automate vendor payments from less than 10% via ACH to >95%
We automated expediting and supplier follow-ups
We reduced maverick spending by 75% and increased savings by 10%
We renegotiated agency rates and reduced the rate card by 20%
Interested?
If interested in further exploring this
issue, please get in touch with
to schedule a call or ask questions.
Interested?
If interested in further exploring this
issue, please get in touch with
to schedule a call or ask questions.
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