A rickety supply chain is putting procurement teams on edge again. If you’re a procurement professional in manufacturing, you may feel like you just pulled your team out of the $228 million hole caused by the pandemic. Now, turmoil in the Red Sea is threatening supply chains again.
What if you could manage supply chains, see spend visibility more clearly, and keep supplier relationships strong no matter how choppy global events become?
New procurement technology makes it possible to do just that. Here’s how your manufacturing procurement team can use innovations to build supply chain resilience.
Why Supply Chains Are a Headache For Manufacturing Procurement
Manufacturing relies heavily on supply chains, so even small disruptions can cause major problems for manufacturing procurement teams. Here’s why supply chain visibility is an especially high hurdle for manufacturing procurement to clear.
Many companies are “flying blind.”
When spend visibility is unclear, it makes planning for supply chain disruptions difficult. Too often, employees will “go rogue” and purchase outside your approved purchasing system or do business with unapproved suppliers. That leaves procurement with little or no idea how the company is spending—making it impossible to prepare for supply chain disruptions.
Spending is rigid and inflexible.
Most manufacturing procurement teams can’t see how much supply chain risk their company faces. What’s worse, they seldom have the flexibility to see delivery statuses, identify supply chain red flags, or change their purchasing decisions in time to protect themselves.
Supplier collaboration is muddled and chaotic.
Most manufacturing procurement teams don’t work with fully digitized suppliers. That means the organization may have a tough time getting supplier updates, tracking deliveries, or knowing when supplies are running low.
Tasks distract from strategic work.
Every minute procurement spends creating purchase orders (POs), identifying line items, or doing similar tasks pulls time away from strategy. As a result, it’s easy to end up blindsided by supply chain disruptions.
How Procurement Technology Helps Manufacturing Avoid Supply Chain Problems
New tech innovations make it easier for manufacturing procurement teams to avoid supply chain problems. Here are four new procurement technology solutions that teams can use to predict and steer clear of supply chain issues:
1. P2P Solutions
Procure-to-pay (P2P) solutions allow you to make purchases and manage spending in one place. They roll all of the organization’s spending data into one platform and provide real-time updates on shipping, deliveries, and pricing, allowing you to make more flexible spending decisions when supply levels shift.
2. Digital Marketplaces
Advanced P2P solutions include a digital purchasing marketplace where employees can shop for goods and products from approved suppliers. These platforms let employees find and purchase items in a few clicks, similar to a consumer website like Amazon.
The result? You gain more control. Because these solutions are easy to use, more employees purchase through the marketplace—eliminating rogue spending. That means procurement can see where the company is spending and use that information to make strategic sourcing decisions when supply chains start wobbling.
3. Automation and AI
Automated P2P solutions rely on AI and automation to reduce work. For instance, advanced solutions will automatically complete two-way or three-way matches. Also, AI can identify line items, match them to POs, and create new POs. These benefits cut down task-based work, so procurement teams can focus on making more strategic supply chain decisions.
4. Supplier Portals
Two-way portals let your employees send POs, deliver messages, and receive shipping updates from suppliers. Your approved suppliers can confirm orders, alert you to disputes, and let you know if deliveries will be delayed.
These tools make it easy to communicate with suppliers,, and view order statuses. That way, when supplies run low or shipments are delayed, you can quickly change your plans and purchase through another supplier.
See How Technology Can Push You Ahead of Supply Chain Disruptions
By embracing new technology innovations, manufacturing procurement teams can increase spend visibility and avoid supply chain disruptions. Want to see how adopting an automated P2P solution can give your team a strategic advantage? Take a Vroozi product tour to see our best-in-class solution in action.
