Amazon Business is a Business Reporter customer
In a competitive procurement market, the key to retaining top-notch procurement personnel is to equip them with technology that enables (not hinders) their performance, helping them make smart purchasing decisions and add value to internal customers.
Retaining talented staff is a constant challenge for all businesses, and the procurement function is no exception. Procurement professionals are highly sought after and are likely to be targeted by headhunters interested in bringing their talent and experience to other organizations.
A recent study by Gartner finds that only 14 percent of leaders expect to have the procurement talent they need to meet future requirements, so organizations cannot afford to have their best people go elsewhere.
Lakeside Software Research The study reveals that 36% of professionals have considered leaving their job due to a bad experience with technology, and that 14% have actually done so. It also estimates that employees are only working at 60% of their potential, due to limitations with tools and infrastructure.
“Traditional ERP systems can be complex and outdated, making day-to-day tasks cumbersome and time-consuming,” said Shelley Salomon, vice president of Amazon Business. “Many of these systems offer poor visibility into spending.
“When it’s difficult to track where money is going, companies can overspend or miss out on savings opportunities. Additionally, many of these systems don’t support responsible sourcing, making it difficult to find and verify sustainable and ethical suppliers. These issues demonstrate why we need modern, streamlined procurement solutions.”
While some staff attrition is inevitable, organizations can take steps to ensure their procurement teams are happy, and one of these is to ensure they have the technology they need to do their jobs effectively. Digital platforms can streamline the procurement process, making it more efficient and user-friendly. This can lead to more positive experiences for both the procurement team and internal customers.
Investing in employee training, including around new systems, is also a proven way to retain people, with LinkedIn Research suggesting that 94 percent of people are more likely to stay with an organization that has invested in their learning and development.
Over time, it’s no surprise that professionals become frustrated with outdated and inefficient technology, particularly if it’s clear that their peers are taking advantage of newer digital platforms. Being able to offer a frustrating and cumbersome process solely to internal clients will lead to discontent among employees, who will likely view the hire as a hindrance to their ability to do their job. This will also trickle down to customer service or the quality of the end product, affecting the reputation of the company overall.
Inefficient processes will cause further frustrations for purchasing staff. One likely consequence is an increase in unauthorized spending, where people decide to bypass purchasing processes altogether and purchase items with a company credit card or through the expense system.
This means that those purchases will not be made through preferred suppliers, making it difficult to meet previously agreed volume commitments with those suppliers. This may impact sustainability or broader corporate social responsibility goals, as preferred suppliers will have been selected based on broader company goals in these areas. This will only become more important in the future: A study by the World Economic Forum finds that 60 percent of organizations are prioritizing sustainable procurement practices.
In addition, more information is needed about spending, such as how much has been spent and with which suppliers. This is critical for those working in procurement, because without this information it is much harder to make informed decisions about future strategy – the part of the job that procurement professionals are really excited about.
Furthermore, having an efficient platform through which procurement teams and other employees can access the products they need to do their jobs through approved suppliers can improve both the perceived value and reputation of the procurement function and those who work in it. It will also make work easier, leading to reduced stress and workload. A Harvard Business Review survey finds that 72 percent of leaders believe that digitizing processes and technologies will significantly improve operational efficiency.
“Whether they’re shopping for themselves or their business, customers expect a wide selection, good prices and a convenient shopping experience,” says Salomon. “With 74% of executives seeing digitalization as key to improving operations, it’s clear that we need seamless, consumer-like experiences in business purchasing, because that’s what we’re used to. This is essential to keeping employees happy and keeping our operations agile.”
Modern procurement ecosystems can deliver more efficient service to employees and help procurement professionals take advantage of new advancements. Machine learning, for example, can help predict future demand and prices, which could prove vital in today’s turbulent economic environment.
“AI is making shopping much more personalized,” adds Salomon. “By analyzing users’ past purchases and preferences, AI can recommend products that fit current needs and past trends, and even make predictions about what businesses may need in the future.
“Incorporating AI into the procurement process is not just a technological upgrade – it is a strategic step towards smarter business purchasing. By leveraging these technologies, we can set higher standards in procurement.”
At a time when the battle for procurement talent is intensifying, organizations must do everything they can to ensure those working in that function can do their best work. That means having modern procurement ecosystems that simplify the purchasing process for internal customers, help channel spend through suppliers that meet specific credentials, and provide the management insights needed to help achieve greater efficiency.
“When we provide our teams with easy-to-use procurement tools, we help our businesses run smoothly and remain competitive,” Salomon concludes. “This includes investing in training, technology and support systems to keep procurement teams engaged and satisfied.”
To learn more about how Amazon Business can help you adopt digital procurement processes supported by machine learning, visit business.amazon.co.uk.
