How to maximize procurement efficiency with automation

Automation in procurement has become a critical focus for businesses aiming to streamline their operations. According to research, 30% of procurement managers still rely heavily on manual processes, whether it's onboarding new vendors, managing purchase requisitions, or maintaining data accuracy.

In a recent discussion on The Never-Ending Climb, Pierre Col, a seasoned expert in robotic process automation (RPA), sheds light on how automation can address these inefficiencies and unlock significant productivity gains.

The Power of Automation in Procurement

Procurement, like many other departments, has seen a gradual shift towards automation. While finance departments were among the early adopters of low-code and no-code automation, procurement is quickly catching up. According to Pierre, procurement processes are particularly ripe for automation due to the number of repetitive, manual tasks that procurement managers handle daily. Automating these routine tasks, even the most basic ones, can lead to substantial efficiency gains.

For example, onboarding new vendors is often a labour-intensive process involving data entry, document verification, and cross-departmental approvals. Each of these steps can be automated to not only save time but also reduce human error, improve data accuracy, and ensure a smoother workflow.

Start Small, Think Big

One of Pierre’s key pieces of advice for companies looking to adopt RPA is to avoid the temptation of automating an entire complex process all at once. Instead, he suggests starting with smaller, manual tasks that are repeated frequently. By focusing on automating these smaller tasks, companies can see immediate improvements in efficiency without overwhelming their teams or systems.

For instance, automating the approval process for purchase requisitions, which may be done hundreds or even thousands of times per month, can dramatically cut down on time spent chasing signatures or re-entering data. Automating just this one task could result in a major return on investment.

Avoiding Common Pitfalls

However, automation isn’t without its challenges. Pierre warns that one common mistake is automating a process without fully understanding how it’s being performed in practice. He emphasizes the importance of observing the process as it’s carried out by the people who do the work every day. Often, employees have already developed workarounds or shortcuts that optimize the process in ways management may not be aware of.

For instance, a procurement team might have an informal system for flagging urgent requisitions that don’t appear in the formal workflow. Automating the process without accounting for this could result in a system that is less efficient than the manual method it replaced. Listening to the team and making sure their practical insights are incorporated is crucial for successful automation.

The Future of Procurement Automation

Pierre’s insights offer a clear roadmap for companies looking to bring automation into their procurement processes. By starting small, understanding current workflows, and focusing on frequently repeated tasks, businesses can reap the benefits of RPA without falling into common traps.

Procurement automation is not about eliminating jobs or making sweeping changes overnight. It’s about using technology to eliminate inefficiencies, improve data accuracy, and free up procurement teams to focus on more strategic tasks. As companies continue to embrace RPA and low-code solutions, the potential for increased productivity and cost savings in procurement is immense.

Click here to watch the entire interview with Pierre Col.