The first step we have taken is to identify the key pain points within procurement today. On the logistics front many of our enterprise resource planning (ERP) systems and IT applications do not communicate seamlessly. This slows down the logistics, increases cost and makes it difficult to achieve transparency on the process. Better system integration will increase automation, lower costs, speed up shipments, and provide better data for analysis of improvement areas and a stronger foundation for planning future shipments.
Our operational procurement processes involve a high degree of manual handling and significant room for making data input punching-errors. Digitalization of the procurement-to-payment processes will reduce the manual work, increasing efficiency, and improving cost control. This will help us to maintain a high degree of compliance with our Procurement & Contracting Policy.
For the sourcing team, many applications and little integration results in frustration and duplication. Today, we have systems for agreement filing and monitoring, signing of agreements, risk management, supplier qualifications, and tender processes, to name a few. Digital transformation may enable more efficient supply management, lower supply risk and offer competitive advantages.
By looking outside our own industry, we have found benchmarks for automation and platforms to enhance the supply chain that far outstrip our current solutions. In 2020, we plan to develop a strong and incremental digital procurement strategy and set clear, measurable goals on automation of our procurement and contracting processes.