Traditional Approach: Tactical, Manual, Inefficient
Traditionally, direct procurement has been viewed as tactical. All companies must acquire materials to manufacture finished goods, but this activity typically provides no real differentiation or competitive value. The usual process relies on siloed internal technology, such as enterprise resource planning (ERP) systems, to manage the data and primarily manual steps to move the process forward.
However, manufacturing has grown exponentially more complex, lead times are now tighter and competitive pressure is much greater. These dynamics present an opportunity to use direct procurement strategically. Yet outdated technology and manual processes can’t handle the scope and scale of what companies need to realize direct procurement’s full value.
A New Strategy and New Technology for Today’s Complexities
The level of agility required to capture growth opportunities—plus resiliency to manage today’s risks—requires a new way of thinking about direct procurement and its potential. Direct procurement teams should be able to orchestrate everything from onboarding thousands of suppliers in multiple tiers to collaborating with trading partners across all ecosystems. This includes ensuring that all parties can stay in sync on purchase order details, match purchase orders to shipments, receipts and invoices and manage inventory risk at any stage.
Leveraging these capabilities, you can empower your teams to see and manage beyond the enterprise and drive maximal value from direct procurement. New technology is required to support this strategy by equipping them with access to a large trading partner network to get the data they need along with integrated, purpose-built software applications for start-to-finish process orchestration.
The Right Technology for Competitive Advantage
No matter where you are in your direct procurement journey, choosing the right enabling technology is crucial for achieving competitive advantage. e2open brings all essential direct procurement functions together on a single operating platform connected to a global trading partner network to provide the data, applications and artificial intelligence (AI) required to transition your direct procurement processes and resources from tactical to strategic. With these broad and deep capabilities on one operating platform that grows with you as your business needs mature, you meet today’s requirements while equipping your organization for future success.
Essentials of Strategic Direct Procurement
Transforming your company’s direct procurement processes from tactical to strategic requires an evaluation of where your department is today and where you want to be in the future. e2open provides essentials to help guide you on your journey.