Modern-day marketers consider procurement operations as a viable means to reduce their production costs. They engage in sourcing activities mainly for this reason. It gives an upper-hand from its competitors. If the production costs are lowered, the prices of goods and services will also be lowered. This will intrigue more consumers to buy a particular product/service. With the advent of digital technologies, organizations are modifying their procurement operations. This “digital transformation” of procurement processes has been the center of study in recent times. New-age business firms hire procurement experts to formulate their sourcing strategies. This assistance from sourcing consultants combined with digital technologies is streamlining the procurement activities of organizations.
How the Procurement Intelligence Software is Catering to an Organization’s Sourcing Needs
Though surprising it may seem, procurement intelligence software emerged in the mid-1990s. There are further developments in procurement-related technologies in recent years. Artificial Intelligence (AI) and machine learning are the two buzzwords in the procurement arena. According to researchers, AI will play a great hand in shaping the sourcing activities of organizations.
Digital technologies have affected every part of the procurement function. However, the impact was more in marketing procurement than in other areas. Digital technologies affect the sourcing processes of organizations in two different ways. Firstly, the company’s buying behavior is changed. Secondly, these new-age technologies also modify the activities of people in the procurement function.
How Technological Developments have an Impact on Marketing Procurement
It will not be an exaggeration to say that digital technologies are reshaping the marketing procurement operations of organizations. Traditional marketing practices are becoming obsolete nowadays. Marketers are using these technologies to reach a wider audience within a short period. It is intriguing marketing heads of organizations to invest in technology tools and its related services. When this concept was predicted by some researchers, it created a stir in the public domain.
According to a survey, marketers are spending 26% of their total marketing budget on new-age technologies. They are willing to spend more on digital technologies than procurement agents. Another survey stated that the businesses of North America and the U.K. will spend 26% of their promotional budget on technology in 2019. It was 23% of the marketing budget in 2018.
Though these research findings do not showcase the real total spending on technology by organizations, its implications are huge. Now, the question arises why these findings fail to capture the real scenario? There is an embedded technology component in several products/services acquired by marketing. The digital technologies are also enabling the purchase of printed marketing materials. A web-to-print solution is an appropriate example in this regard. Generally speaking, these solutions offer virtual “storefronts” through which users can demand printed materials. In recent times, some personalization techniques have added to the scene.
Companies that offer web-to-print solutions blend these technology elements with print manufacturing capabilities. In this way, marketers can be benefited from a print supply chain solution. A large number of advertising and marketing agencies are trying to blend technological advancements with traditional services. It is enabling these agencies to provide solutions on a broader scale. Digital technologies are likely to influence every phase of the procurement process. It will also play a great hand in building supplier relationships. Though the procurement experts perform this role, organizations can achieve enhanced results if they implement digital technologies in their operations.
With the introduction of drones, robots, AI, and IoT, the purchasing power of organizations is very likely to be influenced. Automation will transform an organization’s agility to react in certain circumstances. There is no need for human beings to perform repetitive tasks day and night. Robots also have the potential to replace humans when it comes to a professional work environment. This is bound to influence the business environment in more ways than one. An organization can also change its value proposition owing to this fact. It will simplify the sourcing processes of organizations at large. Marketers can get access to a digital resource pool that enhances their knowledge bank in absolute terms.
In the forthcoming days, digital technologies will further make their way into procurement operations. Marketers need to stay updated about the latest trends in technology. If this is not the case, they will lose ground compared to their competitors. The suggestions of procurement agents can also prove beneficial for marketers in this aspect. Implement digital techniques in your company’s market procurement activities and bring transparency in business operations.