You Can't Deny It: Smart Procurement is Becoming the New Standard

What is Smart Procurement

Smart procurement uses advanced technologies, data analytics, and automation to enhance the efficiency of procurement processes, reduce costs, and improve overall supply chain management, ultimately achieving automated procurement tasks.

Smart procurement is more than just a trend; it is a strategic approach that uses technology to boost procurement efficiency and make better decisions. As global markets become increasingly complex, adopting smart procurement will be key for businesses to remain competitive.

So, keep reading to learn more about smart procurement.

Technologies: Deeply Understand Smart Procurement

Although smart procurement is a new concept, its technology has seen many iterations. Here are the latest commonly used technologies.

1. Artificial Intelligence and Machine Learning

In smart procurement, artificial intelligence and machine learning are among the most important technologies. AI can perform deep analysis on large volumes of historical data to predict market trends, supplier performance, etc.

Machine learning uses algorithms to automatically optimize procurement decisions based on historical data, such as selecting the best manufacturer, the best procurement strategy, etc. When combined, these technologies work even more effectively to enhance decision-making.

2 . Blockchain Technology

Blockchain is a shared, tamper-proof ledger that increases transparency and traceability within the supply chain. It improves procurement process compliance and security.

Additionally, blockchain's smart contract system can reduce intermediaries and human errors.

3. Robotic Process Automation(RPA)

RPA technology automates repetitive, rule-based tasks like order processing and invoice verification. By handling these tasks with robots, businesses can reduce human errors and free up resources for more strategic tasks. This significantly boosts the overall efficiency of the entire company.

4. Internet of Things(IoT)

IoT is a system of computing devices, machinery, and digital machines that are interrelated and have the ability to transmit data through the network, making the world digital.

In smart procurement, IoT enables more accurate data collection, such as monitoring inventory levels and tracking logistics information, providing real-time insights for better decision-making.

By integrating these technologies, smart procurement unleashes unparalleled power, providing companies with significant competitive advantages. Now, let’s explore the benefits of smart procurement.

Benefits of Smart Procurement

1 . Improved Procurement Efficiency

Automated procurement processes simplify tedious manual tasks, significantly boosting team productivity. This allows procurement teams to focus on more strategic initiatives, driving greater value for the business.

2.Cost Reduction

By utilizing smart analytics and optimizing procurement decisions, businesses can minimize waste, and select more competitive suppliers. This lowers overall procurement costs.

3. Risk Reduction

It can enable real-time monitoring of supply chain risks, allowing businesses to identify potential issues early. This helps companies make safer decisions in supplier selection, delivery timelines, and product quality, ultimately reducing operational risks.

4 . Enhanced Transparency and Traceability

With the help of smart technologies, businesses can track procurement processes, supplier performance, and logistics status in real-time. This enhances transparency across the supply chain, improving the controllability and visibility of management.

5. Improved Decision-Making

Smart procurement systems offer real-time and accurate data analysis, enabling businesses to make more informed decisions. This enhances market responsiveness and strategic flexibility, empowering businesses to adapt quickly to changing conditions.

Achieve Smart Procurement： Three Key Steps

Smart procurement can significantly enhance procurement efficiency, reduce costs, and optimize management. To achieve smart procurement, businesses must make strategic and operational changes.

Here are the key steps to achieve smart procurement:

1. Evaluate Existing Procurement Processes

Before transitioning to smart procurement, businesses should conduct a comprehensive assessment of their current procurement processes. By analyzing existing procurement strategies, tools, personnel, and supplier management, companies can identify areas for improvement. This helps create a clearer understanding of the process's weaknesses and prepares the organization for the next step of technology integration.

The evaluation should cover three aspects:

Process Analysis

Document and review each step to identify areas where time and resources are wasted.

Technology Assessment

Evaluate whether the current procurement tools and technologies are outdated, and if there are automated or smarter alternatives available.

Employee Feedback

Gather feedback from internal staff and the procurement team to understand their perspectives on the current processes and the challenges they face.

2 . Select the Right Tools to Optimize the Process

Smart procurement relies on advanced technological tools. You need to choose the right software and platform s optimize each step of the process, such as artificial intelligence, big data analytics, procurement management systems, and supplier management systems. By integrating the right tools, procurement processes can become more intelligent and efficient, reducing manual operations and errors, and increasing data transparency and accuracy.

3. Develop a Stronger Team

Smart procurement is not just about process optimization and technology upgrades; it’s also about improving organizational culture and team capabilities. Your business needs to develop a procurement team that possesses a digital and intelligent mindset to ensure the smooth execution and continuous optimization of procurement strategies.

Methods for building a strong team include:

Training the Procurement Team

Regularly train your procurement team to help them master new procurement tools, technologies, and data analysis techniques, enhancing their technical skills.

Cross-Department Collaboration

Procurement is not just the responsibility of one department. Collaborating with departments like finance, logistics, and IT ensures information sharing, resource coordination, and technology integration.

Recruiting Digital Talent

If your current team lacks technical knowledge, consider hiring professionals with experience in digital and smart procurement to strengthen the team's expertise.

Cultural Transformation

Smart procurement emphasizes data-driven decision-making and results. Cultivating a team culture focused on data analysis, continuous improvement, and innovation is crucial for success.

If you think these processes are too complex, you can opt for the help of a third-party sourcing agent to achieve smart procurement more efficiently and simply.

How EJET Procurement Helps You Achieve Smart Procurement

Smart procurement can be a complex process, but you only need to pay a small agent fee to have a sourcing agent like EJET Procurement assist you in achieving it.

By partnering with EJET, you can access the following smart procurement-related services:

1. Digital Procurement

EJET leverages advanced technology and intelligent features to help businesses optimize their procurement processes, from smart product recommendations to visualized procurement management, enabling efficient and transparent end-to-end digital operations. Including intelligent product recommendations, intelligent price comparison, procurement process visualization, and other services. 

2. Branding and Customization

EJET Procuremboostsoost your brand's impact with EJET. We provide custom packaging, high-quality logo printing, and tailored marketing inserts to ensure your products reflect your brand identity and make a lasting impression on customers. Including services such as custom packaging, logo printing, marketing inserts, etc.

3. Fulfillment and Shipping

EJET Fulfillment and Shipping Service handle warehousing, inventory management, order processing, and global shipping. We also offer Amazon FBA prep and dropshipping to simplify your logistics and ensure fast, reliable delivery to your customers. Including inventory warehousing, order processing, transportation,n and delivery services.

4. Supply Chain Fiance

EJET Supply Chain Finance Service helps optimize costs, improve cash flow, and provide flexible payment terms. With tailored credit support and cost-saving strategies, we empower your business to manage finances efficiently and drive growth. Including services such as cost optimization, deferred payment, credit support, etc.

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Conclusion

With the continuous advancement of technology, You can't deny It: smart procurement is becoming the new standard. To stay competitive and grow your business, you should evolve your traditional procurement processes into smart procurement. If you think building your smart procurement team is too costly, you can consider partnering with a smart procurement agent like EJET Procurement to streamline the process.