Digital procurement, not to be confused with purchasing or sourcing, is yet another avenue in which logistics businesses are moving forward. When a business makes the transition to complete digital procurement, they make available a wide variety of advantages.
Digital procurement increases efficiency by automating and streamlining repetitive processes, and lowering costs, with AI helping avoid costly errors. In addition to that, it produces a wealth of useful data, making day-to-day operations and decision-making more informed, and generally serves as a platform for collaboration between buyers, suppliers, and third parties, leading to optimal purchasing decisions.
Digital procurement leverages pricing, matching, and ranking algorithms across vast amounts of capacity data to efficiently distribute load opportunities to carriers. In a time of constant market fluctuation, heavily stretched supply chains and forecasting models with limited visibility, digital procurement includes visibility features that give procurement officers and business owners actionable insights into their processes.
A tech-forward approach helps solve these problems with detailed information more readily accessible and easy to understand, thereby allowing business owners to launch most profitable action plans for the business. In addition, a completely digital system can be more easily updated and changes across platforms more rapidly implemented.
Recognising the value of a digital transition as early as possible will keep businesses in line with the curve, and in a post-COVID world, digital procurement in business is not a question of if, but when.
Source: Global Trade
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April 27, 2021
