Tag: Technology

Communication, Leadership, Procurement, Teamwork, Technology

Efficiency Redefined: A Strategic Approach to Automating Processes

Efficiency in procurement is about the orchestration of processes through well-designed systems.  In this context, systems refer not only to technology, although it plays a big part in the way that we do things and interact with people daily. The strategic implementation of automation can streamline processes, enhance accuracy, and drive efficiency.

“Good design is good business.” ~ Thomas J. Watson

History offers us lessons in efficiency and systems. Consider the impact of the Industrial Revolution on manufacturing efficiency, with the adoption of assembly line systems revolutionizing production. Another example is the internet and e-commerce. The advent of the internet revolutionized the retail industry. E-commerce platforms automated various aspects of the procurement process, from order placement to inventory management, providing unparalleled convenience to consumers and optimizing supply chain operations. A third example is the introduction of the Enterprise Resource Planning (ERP) systems in the latter half of the 20th century streamlined business processes, including procurement. These integrated systems automated and centralized various functions, enhancing efficiency, and facilitating data-driven decision-making.

Technology can be harnessed to streamline procurement operations. From e-procurement platforms to automated workflows, integrating technology enhances accuracy, speed, and overall effectiveness in procurement processes. 

“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency.” ~ Bill Gates

While automation holds immense potential, blindly applying it to inefficient processes can lead to various pitfalls. Here are five things to consider.

  1. Magnifying inefficiencies: Automating a flawed process may only amplify its inefficiencies, leading to suboptimal results and wasted resources. 
  2. Resistance from stakeholders: Employees may resist automation if it disrupts established workflows or fails to address their pain points, hindering overall adoption.
  3. Data quality challenges: If underlying data is inaccurate or outdated, automated processes may generate incorrect outputs, undermining the reliability of the entire system.
  4. Overlooking human element: Neglecting the human element can result in a lack of adaptability and creativity, limiting the potential for strategic decision-making.
  5. Inadequate security measures: Automating processes without robust security measures may expose sensitive procurement data to potential breaches, jeopardizing the integrity of the entire procurement system.

To ensure successful automation, procurement professionals must consider the following tips:

  1. Comprehensive process analysis: Before embarking on any automation initiative, conduct a thorough analysis of existing processes. Identify bottlenecks, inefficiencies, and areas prone to errors. This understanding will serve as the foundation for designing an automation strategy tailored to the specific needs of your procurement workflows.
  2. Select the right technology: Choose automation technologies that align with your organization’s goals and requirements. Evaluate the scalability, compatibility, and user-friendliness of the selected tools. Additionally, ensure that the chosen technology integrates seamlessly with existing systems to maximize efficiency and minimize disruptions.
  3. Establish clear objectives and key performance indicators (KPIs): Define clear objectives for your automation project and establish measurable KPIs to track its success. Whether it’s reducing processing times, minimizing errors, or enhancing collaboration, having quantifiable metrics will help gauge the effectiveness of the automated processes and justify the investment.
  4. Employee training and change management: The successful adoption of automated systems hinges on the preparedness of your workforce. Provide comprehensive training programs to ensure that employees are comfortable with the new technologies. Simultaneously, implement effective change management strategies to address any resistance and promote a smooth transition.
  5. Continuous improvement and adaptability: Automation is not a one-time endeavor; it requires continuous monitoring and refinement. Regularly assess the performance of automated processes and be prepared to adapt to changing business needs. Encourage a culture of continuous improvement, leveraging feedback from end-users and stakeholders to refine and optimize the automated workflows.

By applying the tips offered above, procurement professionals can harness the power of technology to automate processes effectively, driving innovation, and efficiency in their organizations.

“It’s not enough to do your best; you must know what to do, and then do your best.” ~ W. Edwards Deming

Leadership, Procurement, Relationships, Technology, Transformation

Procurement and Pandemic: Adjust, Learn, Grow

By Lourdes Coss, MPA, CPPO

Many of us entered the public procurement profession by accident. Perhaps the variety was enough to keep you interested or you may have stayed because you were too busy to think about anything else.  Either way, it must have brought enough satisfaction that maybe five years into it you saw possibilities for growth or to positively impact the community.  

After so many years “making an impact” behind the scenes, it is was your turn to shine in one of the most difficult times in history.  At a time where the coronavirus has plagued the world, you have been present supporting those frontline workers in an effort to minimize the devastating effects that this pandemic has had in many nations.

You’ve left no stone unturned.  My compliments to you for jumping on social media, private networking sites, and getting in touch with colleagues and friends in the old fashion way in order to respond to the needs of your organization and your community. It’s good to see that front lines workers have taken notice of the role of procurement. I was talking with my daughter, who for most of her childhood didn’t quite understand what I did for a living and was pleasantly surprised when she told me about the preparedness of her institution because of the timely actions taken by procurement. I am sure that many colleagues can relate to this. So, walk proudly, procurement professional, you’ve done an amazing job.

As the world cautiously opens up and we move to what we may consider a new normal, remember to build on this public recognition to keep the coveted seat at the table past this crisis. There is value in what you do and now others recognize it.  Here is an opportunity to create a new normal with you at the table. Operating under the shadow of a different role in the organization should not be a path forward. We’ve clearly seen that extreme penny pinching resulted in the lack of preparedness. Sure, I don’t believe that anyone could have anticipated the magnitude of this crisis, but organizations that had the foresight to keep up with technology were clearly better able to pivot and respond to the situation almost seamlessly. Seize the opportunity to remove the procurement function from the shadows. You’ve shown your value and now you can build up from there. 

While you think and, most importantly, act on the opportunities that lie ahead, take time to reflect on the path forward.  Here are some thoughts  that can help you show your leadership and growth as an organization.

  • Reflect on this Experience: The experience is only valuable if you learn from it. Take time to reflect on the lessons learned. Reflect on the problems that you faced and how you were able to overcome obstacles under the circumstances to find a solution. Write down the situation and the strategy used to solve the problem. Determine why it worked so that you are able to apply the strategy to other situations in the future. Document and involve your team in putting together a crisis action plan. Include checklists, scenarios, draft procedures, and needed changes to current policy or regulations. Also, make this a growth opportunity for your team.
  • Action: Take the action necessary to prepare for the next time there is a crisis. What are the things that you wished you had in place during this pandemic that could have made it easier for you to handle the situation and solve the problems with which you were presented? If appropriate, implement any policies or strategies that will make your organization more flexible, stronger and better prepared for the next crisis.
  • Technology – Systems & Equipment: Perhaps one of the action items for certain entities is related to innovation, technology and computer equipment.  
    • Technology: Many organizations were not prepared from the technology perspective to conduct business online. This made it difficult to maintain the operation remotely, which increased the level of difficulty during the crisis. If your current work environment is not prepared to operate virtually in an emergency, consider what steps and resources are necessary to begin making progress towards that goal. When investing in new technology, it is prudent to consider the mobility aspect so that business can continue without the need to be in a specific location. A word of caution here is to void the shiny object syndrome, stay focused on the functionality that is needed.Computer Equipment: Some agencies had antiquated computer equipment that did not offer the flexibility for mobility. This made it very difficult to maintain the connectivity amongst teams and/or the rest of the organization. In some cases, employees had to use their own computer equipment, which presents other problems such as greater risk of cybersecurity attacks.
    • Systems: Systems for capturing the costs associated with the emergency is another area that some agencies will need to address. Depending on the situation, the organization may choose to rely on a series of spreadsheets, minor tweaks to existing technology, or the exploration of adequate technology that will enable agencies to capture costs real time. Having a protocol for expenditures related to a crisis is important especially when it’s time to seek reimbursement.  Developing a strategy after the crisis or perfecting the one that worked during the crisis may proof advantageous for all involved. When developing the system take into consideration risk management, but don’t overcompensate by doubling up on approvals. Think strategically and keep it simple.
  • Relationships: Evaluate how your interaction with certain individuals helped you during the crisis. Think about the things that you can do to strengthen those relationships without jeopardizing your position. Perhaps it is as simple as having their contact information handy or creating a directory of key individuals that were helpful during the crisis. It wouldn’t hurt to check in once in a while. It may be also advantageous to evaluate the networks that proved most fruitful and form a task force to evaluate how it can be improved.

This crisis situation has opened the door to opportunities for the procurement professional. The need for technology, systems and mobility is now very obvious to all. If in the past you couldn’t sell the advantages of technology capabilities, this is a chance to initiate that conversation. The need is very obvious and failure to upgrade may put the organization at a huge disadvantage. Everyone has been faced with the technology challenges at a personal and professional level. Individuals and organizations that were able to pivot to a virtual environment quickly fared better than those that were not equipped to do so.

To conclude, procurement professionals managed to stand out in what has been one of the worst crisis situations of our time. The actions taken to prepare for the new normal and for future crisis situations is up to each procurement professional and entity. Remember that this is not the last emergency or crisis situation.  Sometime in the future, you will find yourself in another, hopefully not as major as this one. The lessons that you learned during this time will help you increase your efficiency later. The extent to which action is taken to prepare and to mitigate the effect of a future crisis to the organization and the community that it serves, will depend on each person’s ability to take this experience and grow from it.