Purchasing technology solutions is a critical aspect of modern business operations, enabling organizations to stay competitive and drive innovation. However, it comes with its fair share of increasing challenges, 

Software Company ZIP, recently released a highly insightful survey named Trends in B2B Purchasing report

This article aims at providing a global view on tech procurement challenges, trends and best practices, as well as key insights to solve those challenges. 

 

 

« Nearly 80% Say Their Company Faces Challenges Purchasing New Software and Services;

Majority Looks to Automation to Improve Procurement Efficiency for Better Vendor Visibility and Cost Control »

 

1 – More tech, more often : 

Organizations are increasingly dependent on technology to function efficiently.

In an era where technology evolves faster than ever and the number of available solutions grows exponentially, the pressure is quickly rising on procurement processes, tools and teams. 

 

 

Source : https://uploads-ssl.webflow.com/606c216edbb61dfa4fa2655a/63c0e4c063fad43157bb4655_2023-B2B-Purchasing-Trends.pdf

 

And in the future, the pace of technology acquisitions will keep rising :

“The next 5 years will be a period of fast technology change The technologies that need to be assessed, adopted, and managed will proliferate”

Source:https://www.idclatin.com/2022/events/13_dec_la/FutureScapeLatAm_ppt.pdf

 

Overcoming those challenges requires the ability to implement highly agile, streamlined and scalable procurement processes.

Both internal and external communication is key to enable the organization to efficiently manage as  many procurement requests 

Automation and data backed recommendations are key to drive efficient technology procurement processes 

 

 

2 – Businesses are still using outmoded tools and communication methods in their procurement processes

 

As ZIP CEO, Rujul Zaparde, explains :

« The end-to-end procurement workflow is one process that remained stagnant for over a decade ».

However, the need for technology and market conditions drastically evolved in the last ten years, this is probably one of the main cause of challenges and frustration for organizations. 

 

Still, companies are using outdated and unadapted tools to launch and manage B2B tech procurement initiatives : 

 

Source : https://www.cfo.com/procurement/2023/01/procurement-technology-purchasing-communication-zip/

 

The market is clearly in need of a new generation of procurement tools, covering the entire process, from need definition, to vendor sourcing and procurement automation. allowing organizations to manage the high volume of procurement initiatives while maintaining a high level of agility, collaboration and quality of the decision making.  

 

3 – Streamlining the Vendor Selection and Evaluation Process : 

 

Acquiring the right solutions at the right time to support the organization overall strategy and goals is crucial, yet highly challenging : 

« Selecting the right technology vendors and evaluating their offerings can be a complex and time-consuming process. » – CFO.com

 

The complex offering is frequently too wide for executives to have the precise visibility on the ecosystem and the ability to thoroughly evaluate each vendor precisely. Although this process is key, it is frequently poorly executed resulting in the wrong purchasing acquisition. 

« Only 36% of respondents believe their IT systems are fully aligned with business objectives. »

(Protiviti’s 2022 Finance Trends Survey)

Organization need to : 

  • Streamline the thorough market research process and identify vendors that align with your organization’s needs and goals.
  • Utilize request for proposal (RFP) processes to gather detailed information about vendors, their products, pricing, and implementation timelines.
  • Find the right information sources to evaluate vendors based on their track record, reputation, technical capabilities, and customer support.

 

4 – Technology and Automation is key 

« Organizations must embrace technology as an integral part of their procurement strategy to achieve transformational results. » – CFO.com

  • « 94% of procurement leaders believe digital transformation will significantly impact procurement in the next five years. » (Deloitte survey)
  • « Automation technology adoption in procurement is already at 56% among organizations, driving improved efficiency and reduced manual tasks. » (Deloitte survey)

 

5 – Data-Driven Decision Making:

« Data-driven insights empower procurement teams to make informed decisions and identify cost-saving opportunities. » – CFO.com

With an increasing number of solutions to be assessed, and most decisions made by Business resources, with limited skills and available time, Procurement tools must provide data-driven recommendations to help source and purchase the right tools. 

  • « Organizations using advanced analytics in procurement achieve 3.5 times greater cost reduction and 2.5 times faster supplier cycle times. » (Deloitte study)
  • « 35% of procurement leaders believe advanced analytics will have the most significant impact on procurement in the next two years. » (Deloitte study)

 

 

How can we help ? 

Certainty provides a full procurement suite helping buyers define their needs, source recommended vendors based on a data driven approach, and manage RFPs in a collaborative and efficient way

Certainty’s Procurement Platform helps :

  • Drastically reduce the amount of efforts and the time needed to purchase (and benefit from) new tech solutions 
  • Foster internal collaboration between Business; IT and Procurement stakeholder and even with Partners 
  • Manage communication with vendors throughout the entire procurement process 
  • Provide visibility for global IT Teams on the coherence of different procurement initiatives, and drive synergies
  • Ensure compliance by logging  and saving all communications and decisions made during each procurement process 

In a nutshell, we help organisation ensure they are efficiently acquiring the right solution, at the right time

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