The procurement service sector has matured over the course of the last decade, adding value to business operations. Standardization of processes and automation have driven the growth of this industry to greater heights. In procurement services, adoption of new strategies at various stages of operations has led to the development of new opportunities. The application of technological tools with the purpose of managing different areas of procurement has enabled operational excellence.
According to Gartner, the leading advisory company for IT research, procurement services adoption was the lone supply chain market that maintained growth during the period from 2008 to 2011. Sustainability of growth has been made possible by the effective application of technological tools that has driven savings. Furthermore, these tools have been adapted to deliver the right capabilities that have been targeted.
The principal delivery model, Saas (Software as a Service), has played a major role in the development of this sector. This is mainly due to the fact that this system permits enterprises to access technologies for procurement even when constraints exist on IT resources. This is enabled by the fact that stand-alone solutions are delivered by various procurement technologies, thereby adding significant value to the process.
Procurement services: Adoption sustained by new policies
In procurement services, adoption of the latest technological tools and techniques has been beneficial to companies who have used this to their advantage. A majority of the companies have realized that the utilization of P2P automation, contract management software, and spend analysis tools is the key to success. Many companies have implemented supplier management solutions. The demand for these solutions is also likely to rise in subsequent years since at present there is increased focus on regulatory compliance, risk, and corporate governance.
At the organizational level, tools for vendor management tools and contract management need to be integrated with improved standard controls for data entry. This will provide the company with a better view of performance as well as the risk factors that can arise from vendors and contracts. The latest technological tools such as cloud computing and services need to be looked at in this field. Procurement services adoption will be a lot easier with the application of these tools.
While cloud services are being adopted in procurement services in the private sector, clear-cut policies need to be devised in this regard. It is important that policy makers or governments should formulate regulations that would level the playing field for the adoption of cloud services. Errors that may arise in this domain should be categorized by types depending on the severity.
The domain of procurement services has undergone expansion to attain maturity by the application of advanced technological tools. For sustaining growth, strategies have to be renewed and new policies and regulations have to be set in place.