Digitization is a key success factor for the procurement function. As procurement & supply chain consulting we know how you can benefit from digitization in procurement not only via realizing big savings. With the right set screws simultaneously you reduce risks, accelerate your processes and enable other corporate functions to fully exploit the market.. At Emarticon we call this ”Procurement 4.0”.

To do this, the digital gears must run smoothly and the infrastructure must be up to date.

The aim of digitizing procurement processes should be to connect all process steps with as little media disruption as possible or with automated interfaces - at a reasonable price at the same time.

In concrete terms, this means for the procurement function that the following process steps should interlock digitally:

  • Demand & Category Management
  • RfX / Sourcing / eAuction (classic e-procurement)
  • Supplier Management
  • Contract Management
  • Market Research & Supply Risk Management
  • Ordering, Invoicing, Payment (classic e-procurement)
  • Spend & Savings Analysis

  • Additional tools such as ordering travel services, software license management or process management

Digitization in procurement goes far beyond classic e-procurement.

Success factors for digitization in procurement

State-of-the-art digitization in procurement requires the right prerequisites. Perhaps you have already met most of them in your company, but your employees rather see problems than solutions when changes are required? Or you are set to procure the necessary IT resources for a future-proof system but you still need to bring in line your procurement strategy?

Emarticon helps you get an exact picture of the current status as well as the target picture, and thus, create the right conditions for changes. We can recommend appropriate measures and support you in implementing them successfully.

Important success factors are:

  • Understand the current capabilities of your organization's existing processes and tools
  • Detail the respective shortcommings / room for improvement
  • Efficiently use the procurement market, especially cloud-based & SAAS systems
  • Use big data analysis and AI correctly
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How to avoid the big digitization mistakes in procurement...

I would be happy to offer you the opportunity to discuss your specific situation with me as part of a strategy discussion.

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The IT procurement market: who supplies what?

Practice shows: IT sourcing know-how is one of the decisive factors for the successful digitization of procurement processes. Yet, problems in IT procurement are quite complex: What tools are there? What scope and performance do these tools have? What features are must-have, what would be nice-to-have and what is quite unnecessary?

Correct design of the corresponding IT sourcing also includes the clarification of the following cornerstones:

When it comes to these questions, Emarticon is a specialist with many years of experience in IT sourcing and the implementation of complex systems. With the help of Clemens Rinnebach and his wide network of experts, you can avoid the typical problems in digitization, such as:

"Service providers or software manufacturers do not provide a future-proof best practice solution"

"The project budget exceeds expectations"  

"Follow-up costs for releases are not calculated or too low"

"Productivity increase is difficult to measure"

"The project becomes unnecessarily complex and takes much longer than planned"

"Data quality is insufficient at the start of the project"

Efficient IT sourcing for digitization in procurement for your company's success

Efficient IT sourcing for digitization in procurement for your company's success

Efficient IT sourcing for digitization in procurement for your company's success

How can successful IT sourcing be achieved? From a large number of projects in different industries, we at the Emarticon developed a new approach that, similar to agile management, is based on a few guidelines:

  • Business KPI above technical measurement
  • Customer-supplier relationships above contract rules
  • Good response to change is more important than planning and measuring
  • Total cost counts more than price benchmarking
  • Innovation is driven by user value

In fact, these guidelines are a revolution. There are principles that if used correctly, can save up to 50% of the costs of IT development projects and up to 40% of the costs of operational IT outsourcing projects.

How can these guidelines reduce costs?

Of course, technical measurements are important, contract rules must also be followed and planning must take place. However, more and more rules often only lead to more management escalation. This in turn often prevents that employees being directly involved can act appropriately to drive down excessive costs. An example: Technological leaps that were unforeseeable at the beginning of the contract lead to competitive disadvantages if no response is made to them, and excessive costs arise compared to the competition.

So how can conflicts and management escalations be resolved in such cases? And how can an IT contract be renewed if technologies are to be used that were not yet known at the time of conclusion? These are precisely the situations in which these guidelines offer you a very powerful tool.

For example, "good reaction to change above planning and measurement" means in the implementation (ie "translation"): Definition and use of contracts, mechanisms, development environments and project management techniques that already anticipate roadblocks and changes in boundary conditions.

What can Emarticon do for you?

Clemens Rinnebach and his team can support you and your company in digitization. Emarticon has an extreme broad experience in finding the right IT solution for digitization in procurement.

Is digitization a pain or a joy?

Don't get lost in the complexity!

Our services for your digitized procurement organization summarized again:

  • Analyzing the maturity of digitization in procurement
  • Uncovering deficits and options for action
  • Developing a coordinated approach to achieve state-of-the-art digitization together with all stakeholders
  • Definition of requirements for the introduction or expansion of appropriate IT systems
  • Support in tendering and negotiations with software manufacturers and IT partners
  • Ensuring long-term cost-efficient IT contracts
  • Support for system adaptation and introduction

Digitization in procurement with Emarticon - a successful example

For an international company with a procurement volume of around €350 million, we first examined the status of the purchasing processes and then simplified them. In the next step, together with the customer, we found a suitable SAAS provider for a cloud-based e-procurement solution and negotiated a contract. Finally, under our leadership, the system was adapted and implemented for the customer. Full access via smartphones was ensured.

With this we achieved a significant acceleration and transparency of the procurement processes.