With thousands of digital tool packages flooding the market claiming to simplify the procurement process, it can be easy to get lost in all the noise, said Cyrille Naux, executive VP of purchasing and supply chain at Chassis Brakes International (CBI).
Speaking with colleague Romain Laclaverie, global digital purchasing & procurement director at CBI, the pair addressed the Ivalua Now conference in Paris about the challenges of a digital transformation.
The key is to ensure your people, processes and tools are all working in parallel.
Naux recommended procurement teams had a clear plan before starting: “I’m only working with the tools I need. I need a procure-to-pay process, I need visualisation and data management tools. I need everything for my buyer to make good decisions.”
Laclaverie explained a good starting point for streamlining processes was to start with looking at data, as revelations on how money is being spent can give the “wow effect”.
This can come from the realisation there are too many suppliers, said Naux. “Do I have 10 or 20 suppliers for communications? Then you can start improving, but if you don’t have the wow effect, you don’t know where to start.”
But according to Naux, organisations should begin earlier than this, with a communication campaign to explain why the digital transformation is happening.
“If you don’t start by explaining why and what the vision is, procurement become the annoying people blocking you,” he said.