Digitize the purchasing process, a key strategy to save on procurement costs
The digital transformation of the purchasing space allows companies to reduce incidents by 7%, lead times by 12%, improve external costs by 10% and internal costs by 34%
BY RRHHDigital, 17:30 – 02 March 2021
The pandemic year has taken its toll on Spanish companies, leading many to invest in digitization, also showing that those that were already more advanced in this area have performed better in terms of savings. , sales and process optimization. The purchasing and supplier management function, a very strategic area for companies, is one of those that has undergone the most transformations over the past year. Indeed, according to data from Fullstep, a company specializing in end-to-end digitization of the purchasing, procurement and supply chain process, by 2020, companies that had invested in digitization and improvement processes in this area have seen how this has contributed to the reduction in trade costs by 10%.
In this sense, companies have had to face significant challenges over the past year, such as supply interruptions due to temporary border closures, adaptation to peaks in demand, changes in the mix of production, increases in the prices of products and components, or teleworking, among others.
The crisis strengthens the strategic vision of the purchasing area
The digital transformation of the purchasing and supply function makes it possible to improve the financial and operational situation of companies quickly and without affecting the structure of the company. Likewise, purchasing processes have shifted from saving as a sole objective to focusing on other aspects such as risk management for suppliers, orders and their monitoring and evaluation of the service. In Fullstep’s experience, digitizing the process helps companies reduce incidents by 7%, delivery times by 12% and internal costs by 34%.
Despite the pandemic, last year more than 12,000 million euros were managed through the Fullstep platform during purchase negotiations. Likewise, through the outsourcing service, Fullstep’s purchasing team conducted negotiations for its clients for a volume of over 500 million euros, achieving an average saving of 15% and reaching in some categories up to at 30% savings.
2021 objectives: consolidation of LATAM and optimization and technological expansion
The company has carried out international projects with large companies in more than 30 countries, helping to optimize their relations with suppliers to around 40% of Ibex35 companies from different economic sectors. Likewise, more than 100 companies have opted for the Fullstep purchasing platform for the management of the purchasing area. For 2021, Fullstep’s objectives are very focused on technological innovation.