Conceptual analysis of digital procurement

Deloitte

By applying technologies such as artificial intelligence, Internet of Things, robot process automation and writing network, we can build predictable strategic procurement, automated procurement and forward-looking supplier management, so as to reduce costs and increase efficiency, significantly reduce risks, and turn the procurement department into the value creation center of enterprises.

energy

Digital procurement includes five aspects: establishing digital supply market, linking supplier network ecology, building smart supply chain risk management system, improving management level and compliance, and maximizing customer experience and service efficiency.

McKinsey (company name)

Through big data, process automation and brand-new analysis model, suppliers and business users can improve the efficiency of procurement and greatly reduce costs, thus achieving faster and more transparent sustainable procurement. The key point is to identify and create value and prevent leakage, which is divided into four modules-expenditure visualization, collaborative advanced procurement, procurement payment and performance management.

National Industrial Information Security Development Research Center

Starting from improving quality, reducing cost and increasing efficiency, facing the whole procurement process from sourcing to contract, from order to payment, and supplier management, a new generation of information technologies such as Internet, big data and artificial intelligence are applied to build a new data-driven procurement system, realizing procurement system upgrade, business innovation, process optimization and management change, and improving the response speed and collaborative efficiency of the supply chain.

Discrimination between digital procurement and ERP-SRM-SCM concepts

ERP, a management platform based on information technology, provides decision-making means for enterprise employees and decision makers with systematic management ideas. The procurement management module has the functions of supplier information inquiry, expediting, procurement outsourcing, price analysis and so on.

SRM- improving the relationship with upstream suppliers of supply chain is a management idea and software technology solution dedicated to establishing and maintaining long-term close cooperation with suppliers, and it is an important module of digital procurement.

SCM- supply chain management refers to a management method that effectively organizes suppliers, manufacturers, warehouses, distribution centers and distributors to manufacture, transfer, distribute and sell products under the condition of meeting a certain level of customer service, so as to minimize the cost of the whole supply chain system.

? The further extension of digital procurement ERP procurement management module not only pays attention to the improvement of internal procurement efficiency, but also helps enterprises to find better suppliers, manage suppliers online, control risks and form an "end-to-end" procurement management system through SRM, supplier collaboration and strategic procurement modules.

Main product modules of digital procurement

On the basis of big data, RPA, AI, Internet of Things and other technologies, the digital procurement product module is divided into two parts: procurement management tools and third-party B2B procurement platform. The procurement management tool module is divided into strategic sourcing, procurement execution, supplier management and supplier collaboration, focusing on improving the efficiency of procurement management. The manufacturer providing relevant tools is referred to as the tool manufacturer in this report. Starting from the types of purchased materials, the third-party B2B procurement platform can be divided into: non-productive materials B2B procurement platform, productive non-raw materials B2B procurement platform and raw materials B2B procurement platform.

Atlas of digital procurement industry

Tool manufacturer

Features of providing digital procurement software (traditional or SaaS): (1) There are usually ERP genes; (2) The services provided tend to be homogeneous and the competition is fierce; (3) High customer acquisition cost and high repurchase rate; (4) Customers are basically medium and large customers (single module vendors do not cover the core process of procurement management, so they are not included, such as invoice management vendors and order management vendors).

Third-party B2B procurement platform

Divided into three categories: (1) providing raw materials; (2) Providing productive non-raw materials; (3) Features of providing unproductive raw materials: (1) Industry: Different vertical industries will produce different platforms for productive raw materials, and barriers between industries are hard to break; (2) The way of profit is through price difference and fees charged by suppliers; (3) There are many sub-tracks, with more monks and less meat, and there is no fierce competition. (4) Customers cover customers of different sizes.