As businesses are forced to rethink how they operate amid office closures and supply chain interruptions, COVID-19 has accelerated digital supply chain transformation in MRO and the need for touchless transactions and automation, particularly in S2P procurement processes. Where the pre-coronavirus world had businesses merely researching Industry 4.0 and considering supporting digital technologies, the prospect of a digital supply chain completely transforming the way companies manage tail spend and source to pay procurement of MRO now seems like a survival strategy as businesses quickly adapt to the new normal and implement S2P procurement automation to become more versatile and remain relevant during this global pandemic.
Social Distancing and Automation
Self-service trends that were developing prior to the pandemic have accelerated as businesses have less time, resources, and freedom for manual interactions, making supplier and customer portals essential. Companies that had previously embraced a digital supply chain solution for their MRO are finding themselves ahead of the game as organizations redefine what supplies are critical and now consider MRO as essential for their operations.
Another driver of this rapid adoption of automation is that digital supply chain solutions go far in demonstrating the operational viability of organizations. The ability to manage processes like S2P procurement, put these organizations in high demand, as customers have begun to evaluate the solvency of the businesses they work with. Digital supply chain technology and automated source to pay procurement has become integral to the health of a business as customers become more reliant on digital solutions during the pandemic.
Adding Value through Actionable Insights
While automation and digital supply chain technology provided exciting tools that allowed businesses to gain insights from their big data prior to the COVID-19 crisis, it has accelerated the need for digital supply chain and automation solutions that streamline processes, reduce downtime and operating costs, and enable MRO to add value in operations, distribution, and source to pay procurement. Where companies previously considered robotic process automation for the ability to reduce errors and manual overrides while cutting administrative and labor costs, now organizations are relying on RPA and S2P procurement to maintain supply continuity, manage risk, and provide deep analytical insights.
An analytics-driven s2p procurement approach allows greater visibility into the MRO digital supply chain, gaining more spend under contract through category expertise, and driving compliance to negotiated contracts through a center-led process that implements improvements to realize newly identified savings.S2P procurement offerings that take a center-led approach are finding it easier to scale and leverage the MRO expertise across their organizations, as on-premise teams are forced into staggered shifts that may not be as efficient.
While the toll this pandemic has taken on lives and our general way of life is tragic and beyond anything anyone could have imagined, we are finding that organizations are working more collaboratively to address the emerging challenges caused by the COVID-19 pandemic. Manufacturers and other asset intensive organizations are working across the digital supply chain ecosystem, not only using technology, but reaching out to the supply base, customers, academia, transportation and logistics to innovate and discover new capabilities and help each other in any way possible. Automation, digital supply chain and source to pay procurement are just some of the tools people are implementing to find their way through this.
We’re in this together
As one of the leading digital supply chain providers, SDI manages all supplier negotiations, sourcing, management, and performance to ensure that all indirect spending contributes to your overall savings. Contact us today to learn more about our Source to Pay solutions.