The procurement, driven by digital transformation and emergency coronavirus, has undergone a strong evolutionary push. We decided to address the topic with the authoritative support of Mario Messuri, General Manager Jaggaer Italy and VP South Europe
What is Jaggaer’s position on the new procurement road?
The need to manage processes from remote locations has certainly given a boost to all SaaS solutions that are aimed at this purpose. And procurement is really one of the areas that has been most affected by this phenomenon. What I register, from my Group’s leadership observatory throughout Southern Europe, is that in Italy and neighbouring countries this drive is not yet The drive to digitalization, made mandatory and pressing by the pandemic, has made it possible for many to hurry to manage the manageable and save the salvageable, securing the supplies and the fundamental processes but without considering and explaining My impression is that the emergency has been extremely beneficial in bringing many companies and SMEs closer to a holistic vision of processes, but that the great added value of the big picture that this beginning can represent is still to be grasped in its entirety.
The added value that a procurement solution can give is the management of the entire process without ‘disconnecting’ and in full and fluid integration with all the most common ERP and IT systems of the companies. And this ease of grafting can certainly reassure, on the one hand and on the other, to allow a clear view of the individual processes and roles involved. If we look at procurement, it is essential to draw the purchasing process starting from the digitization of the demand information (what when and who has to buy what), passing through the Category strategy, to then move to the typical stream of the Upstream or The completion of the process is achieved by digitizing the executive part, the management of catalogues, the part related to the purchase requests, orders, the entry of goods, billing and, not least, reconciliation and payment.
An ordered macrocosm, so to speak, that contains many ancillary subprocesses no less important than would benefit from digitalization: I think, for example, of the measurement of performance, the evaluation (updated over time) of the supplier’s rating, the risk
To come back to the point, what happened is that in many companies the requests for digitalization came from different departments without an organic vision of Demand 2 Payment. The paradox is that there are not few companies that have been forced to buy different solutions for individual processes, with the effect of having to integrate the systems
I quote the example of a manufacturing company whose procurement chose to acquire a module for the supplier register and the sourcing, while the Quality colleagues acquired a different module, which also had a register inside it.
We all know very well what the pandemic was and the first and then the second lock-down: but the pressure of vendors and the urgency dictated by circumstances has caused a breakup that has not always helped internal processes.
What is expected for the future?
I already respond to • in some contexts that have become more mature towards digital processes • a strategic rethinking and optimiz But there are still many realities that I encounter daily not yet fully aware, in spite of the PNRR, of the importance of digitalization \” pervasive \” of the processes. I’ll try to explain myself. Sometimes pressure has led companies simply to transfer digitally what they did in analogue: this approach has given rise to complex projects that often challenged technologies requiring many customizations. On the other hand, there are still a minority who have chosen to challenge processes by accepting simplification driven by technological products available on the digital market. I am referring in particular to three key aspects of the success of an innovation project:
Project execution speed The reduction of platform and project cost The reduction of maintenance cost is now widely acknowledged that a product solution in the long term costs less than a custom solution.
This does not mean denying any possibility of customization of solutions. Each company has specific sector and process characteristics that require specific answers. It is a question of reconciling a solid technological system with flexibility in product configurations and scalability. As Global Software Vendor, this has been our approach for over 25 years, which finds concrete expression in our source-to-pay solution Jaggaer One.