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With digitalization, purchases change dimension

ArticlesWith digitalization, purchases change dimension

24 May 2016
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In the face of the digital transformation that is upsetting businesses, purchasing must accompany other functions in a cross-cutting approach and strengthen their own tools. The result is a change in organizations and processes, which is still in its infancy.

On Monday, May 23, 2016, the National Purchasing Council (CDAF) organized the first universities dedicated to the issues and problems of the profession. In front of an audience of some 800 people gathered in the large amphitheatre of the Palais des Congrès in Issy-les-Moulineaux, Marc Sauvage, the president of the main professional association of buyers in France, opened the debates by emphasizing the profound changes that the function continues to make to to become more effective in a context of global economic crisis.

How? By continuing its professionalization, its modernization, its digitalization. "Purchasing is also becoming part of the digital transformation of organizations," he added. "In an economy marked by a breakdown in trust, the strengthening of collaborative capacity and the fluidization of business-to-business relationships, using tools such as electronic billing and reverse factoring, have become crucial," Thibault Lanxade immediately illustrated, during the first round table that took stock of the situation. "Certainly, the challenges of digitalisation are not yet well understood by all business leaders, and therefore little integrated into their strategy," continued Medef's vice-president in charge of SME-SMEs. "But procurement has an important role to play in facilitating and supporting the movement."

Before the audience was scattered in the dozen or so workshops that also largely focus on digital change and the development of information systems, the second roundtable looked at the focus on procurement by other functions: general management, finance, human resources, etc. Citing as qualities "openness" (Christophe de Maistre, Siemens France), "relational intelligence" (Marie-Luce Godinot, Bouygues Construction) or "the ability to deliver the expected savings every year" (Jean-Philippe Grégoire, Fraikin), the speakers agreed that purchasing and purchasing had evolved a lot. But also that digitalization forced to review models, processes, organizations.

"The purchasing function has now entered into a logic of structuring the sector, developing business-to-business relations to foster open innovation," Christophe de Maistre.

With the precision of Albert Varenne (Airbus), from the room: "After seeking to source the best suppliers, now shared by the whole industry, the goal today is to become their best customer." The other buying issue is to establish and strengthen links with related functions within the company, such as sales management to better accommodate end-customer demands, or supply chain to optimize delivery times.

Among the three workshops on digital themes, one further detailed the contribution of purchasing directorates to the digital transformation of organizations. With the deployment of mobile applications, social networks, connected objects, e-commerce, etc., it is imperative that the function evolves at the same time as its interlocutors, to upgrade and remain able to bring value in each of the company's activities. Digitalisation is also changing Buying practices, to identify start-ups, to reason in commitments of results rather than means, to control risks in the project management. Finally, purchases must provide a cross-cutting vision to foster a global approach (functional, geographical, etc.) and technical synergy. The other two workshops focused more on digitalisation of the purchasing function itself, presenting for one the best practices of the supply-to-pay, for the other the new challenges of purchasing information systems. Either way, nothing new. Apart from the growing emphasis on The ergonomics of tools and, more generally, to support encouraging user adoption.

The Crystals of Purchases list

Supplier relationship: SNCF
Business Partner of the company: Civil Hospices of Lyon
Purchasing Excellence: Avana Rabeony
Transforming the function: Schaeffler
Regional Prices: Cinnamon and Pepper
Purchasing Directorate of the Year: ADP
Jury favourite: Axa

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