COVID-19 fuels the digital transformation in the oil tycoons’ supply chains

8 July 2020

COVID-19 fuels the digital transformation in the oil tycoons’ supply chains

 

Growing competition limiting business profits of Middle Eastern companies is not the only factor driving the eagerness for procurement’s digital and functional transformation in the region. The outbreak of coronavirus epidemic shifts the willingness into a fundamental necessity.

 

 

During business conferences held in 2019 in the Middle East, procurement practitioners and experts repeatedly underlined efficient and comprehensive supply chains as the new competitive advantage. Every company willing to compete not only locally, but also globally is required to build a complete procurement strategy backed-up with the automation of manually performed tasks. The transformation should be complemented with smart purchasing tools and workflow-driven solutions embracing the potential of AI.

 

 
The procurement’s function is changing. Its role has to be enhanced to the point of becoming the organization’s business partner. To add real value to the company’s trustworthiness, sustainability, strategic security, and of course – profitability, procurement activities must be not only well-planned and digitalized. - says Mateusz Borowiecki, Managing Director at OptiBuy – To lead the transformation, procurement needs the best talents in the industry. Leaders understanding the nuances of the supply chain and possessing skills to influence the C-Level stakeholders to adapt endorsed strategies and approaches to, ultimately, enable procurement contribution to the organization’s total value.
 

Forewarned is forearmed - valid for supply chains

The global reach of the crisis effectively shattered the feasibility of traditional sourcing methods. Companies with diverse supplier base, thought-through supply chain ecosystems, and optimized internal processes extensively supported by e-procurement and workflow management software took the market lead with a significant advantage in securing steadiness in their supply chains. Thus, enabling themselves to acquire a larger share of the market currently missing some competitors still struggling for components and resources.

 

The new generation of tools is capable of handling procurement processes almost without the use of paper, with 24/7 accessibility to all of the running processes from any location. Facing the recent events of the COVID-19 outbreak, these and other technologies granted us… survival. Moving day-to-day activities online facilitated the overall continuity of businesses.

 

Join free webinar - Procurement Digitalization - 15th July - 2 PM (UAE)

 

Team members locked down at their homes, stakeholders and suppliers quarantined, state borders closed, airports shut down, services canceled. Procurement (and other business areas) faced challenges collectively called the “new rules of the game” which pushed it towards intensification of digital transformation and adoption of various technologies, often – in a matter of days. Often, the new solution generates extra needs and sometimes reaches to brand new supplier markets, yet uncharted by buyers.

 

Continuity of business retained

Relatively uninterrupted supply was achieved through the new models' adoption, close co-ops with suppliers, and emergency use of every available means that accelerated the process of introducing new contractors to the organization.

 

Companies try to identify risks associated with suppliers in advance. In such an uncertain and volatile environment this may become a complex and time-consuming assignment. This is where AI, machine learning, automation, bots, and other advancements unleash their potential. Almost every repeatable task can be translated into algorithms under certain circumstances. Thus, it can be automated.

 

In addition to performing mundane activities such as creating POs, processing invoices, or reminding us about expiring contracts – AI-based smart procurement tools are capable of outlining scenarios based on massive amounts of data with inhuman precision and speed. Information collected internally, contract terms, history of cooperation, content on the Internet, and Big Data - market research, statistics in the micro and macro scale can be analyzed quickly and almost effortlessly. An invaluable source for decision-making and risk assessment.

 

Procurement's digital transformation - where to start, how to begin

What exactly one can expect from a cloud-based procurement platform & workflow management system? How to successfully deploy procurement technology? What lies ahead eprocurement and digital transformation in the light of a pandemic?

 

Technologies mentioned above let us stay (safely) in touch with our employees, colleagues, suppliers, friends, and family – why not use it to get insights on procurement digitalization and find answers to your questions?

Register for our free webinar - on July 15th at 2 PM Dubai Time (12 PM Paris/Warsaw Time); join Mateusz Borowiecki (OptiBuy) and Sara Omer, FCIPS (Ivalua).

 

Join free webinar - Procurement Digitalization - 15th July - 2 PM (UAE)

 

Procurement digitalization: Lesson learned and outlook

Details & registration: www.optibuy.com/webinar

 

 

Mateusz Borowiecki LinkedIn: https://www.linkedin.com/in/mateusz-borowiecki-optibuy/

Sara Omer LinkedIn: https://www.linkedin.com/in/sara-abdellatif-omer-fcips-b6bb0b26/

 

 

About Ivalua

Ivalua is a leading provider of cloud-based Spend Management solutions. Our complete, unified platform empowers businesses to effectively manage all categories of spend and all suppliers, increasing profitability, lowering risk, and improving employee productivity. Trusted by hundreds of the world’s most admired brands and recognized as a leader by Gartner and other analysts, Ivalua maintains the industry’s leading 98%+ customer retention rate. Learn more at www.ivalua.com

 

 

About OptiBuy

OptiBuy is an international consultancy specialized in procurement management. We are providing a broad range of outstanding procurement solutions, using an international network of our own offices (Poland, Czechia, Germany, Switzerland, and China), extensive market knowledge, and advanced set of IT tools. We are one of the leading procurement consulting companies in Central-Eastern Europe. Our specialties are optimization of procurement costs (cost-cutting), global sourcing projects, and implementation of the specialized procurement software (Ivalua, NextBuy).

Learn more about OptiBuy at www.optibuy.com/en

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