Leverage the crisis to innovate: how sourcing technology helps your procurement area.

With increased geopolitical volatility and economic uncertainty, many companies are looking for ways to adapt to changes in their environment. According to the World Bank, growth in developed economies is expected to slow from 2.5% in 2022 to 0.5% in 2023, which has historically been a harbinger of a global recession.

One of the areas where significant innovation is taking place is in procurement departments. These areas are transforming to take advantage of the new challenges and opportunities that the crisis brings.

In addition, companies must focus on innovation to improve the efficiency of procurement processes. This involves looking for ways to improve current procedures to reduce costs and improve quality. This includes adopting technologies such as software and process automation to improve efficiency and profitability.

In this context, it becomes essential to invest in technologies such as Big Data and Artificial Intelligence (AI) to improve the efficiency of supply chain management. The consulting firm Gartner highlights in its report "Top 10 Strategic Technology Trends for 2023" that more than 75% of organizations will incorporate this supply technology to gain greater visibility into processes and make better decisions.

Innovating quickly and efficiently with sourcing technology

Digital procurement platforms, such as wherEX, enable companies to improve the efficiency of their purchasing processes and optimize capital expenditure. This means that companies can make the most of their financial resources, ensure they get the best prices on the products and services they need, and reduce the time spent on the purchasing process.

The digital tool, wherEX, is useful in times of crisis, as it allows companies to quickly adjust their purchasing strategy to adapt to new market conditions. Digital sourcing platforms also offer artificial intelligence tools that allow companies to analyze behavioral patterns, monitor the market and predict future prices. 

This enables them to make informed decisions about which products and services to buy and when. Finally, digital sourcing platforms enable companies to improve the traceability and tracking of the products and services they purchase, allowing them to better manage risks and ensure product quality.

Finally, innovation in the sourcing and procurement departments is one of the main ways in which companies can take advantage of the economic and geopolitical crisis to stay relevant and competitive in the changing marketplace. This innovation includes the use of new technologies, improvement of existing processes and supply chain optimization.