Will These 3 Emerging Trends Transform Procurement?.

October 09, 2024
SAP Intelligent Spend & Business Network

As highlighted in a recent Procurement Magazine article and by so many other analysts, e-procurement—the electronic purchasing of goods and services—is emerging as a pivotal component of organizational strategy in the contemporary landscape. Propelled by rapid technological advancements and the increasing need for operational efficiency, e-procurement systems are transforming the procurement process. This article delves into the emerging trends in e-procurement and evaluates their impact on businesses. 

1.  Automation and AI

One of the most significant trends in e-procurement is the integration of automation and AI. These technologies streamline procurement processes by automating routine tasks such as order processing, invoice matching, and approvals. AI further enhances procurement by providing predictive analytics for demand forecasting, supplier evaluation, and risk management. 

This shift towards automation and AI reduces human error, speeds up operations, and allows procurement professionals to focus on strategic activities rather than administrative tasks. 

For suppliers in SAP Business Network, an example of automation is the ability to integrate their back-end systems to the network, creating a fully touchless flow between their system and their customer’s. An integration project, which might seem daunting at first, is further simplified by the introduction of a guiding wizard, of smart templates, and of a wide collection of connectors. 

Through this integration method, suppliers can significantly reduce the time needed to set up, configure, and test connectivity and content. Compared to common integration options which can take months or years to deploy, the managed gateway enables suppliers to go live with their integration projects in weeks. 

An integration wizard guides suppliers every step of the way and provides a solution at scale for integrating with multiple customers using automatically generated cXML templates based on previous integrations and industry standards. Reliable testing and monitoring are also provided so suppliers can test and validate their connectivity and content. In short, SAP Integration Suite, managed gateway provides suppliers with a quick and simple 

2.  Sustainability

Another top-of-mind topic for organizations is sustainability. Sustainability and ethical sourcing are becoming integral to e-procurement strategies. Organizations are increasingly using e-procurement platforms to ensure that their sourcing practices are environmentally friendly and socially responsible. SAP Business Network launched a new improved supplier profile, allowing suppliers to showcase their sustainability ratings. No longer do they need to manage both a Company, Marketing, and Discovery profile as all are now combined into one, all-encompassing Company Profile where they can show off their brand. 

There are several ways a supplier can take advantage of the features of their profile to get the most from their SAP Business Network experience. One is Sustainability Ratings. This allows suppliers to showcase their company’s commitment to sustainable operations by directly uploading their verified sustainability rating from SAP’s trusted partner EcoVadis to their Company Profile. Suppliers can build trust with both current and prospective buyers and generate more leads as buyers search directly for suppliers with a rating uploaded to their profile via the Trading Partner Portal. Suppliers also have the option to enter self-reported sustainability ratings from additional providers such as Dun & Bradstreet and Integrity Next. This gives suppliers the ability to showcase the aspects of their company that differentiate them from the competition, including their corporate social responsibility (CSR), and provides a quick way for buyers to identify suppliers with certain criteria they may be looking for in a trading partner. 

Beyond sustainability, another way of taking advantage from a well-filled profile is to complete assessments, for instance on their business’ human rights practices. They simply need to complete once a standardized assessment form, created using industry standards, and share it as many times as they like with any buyer on SAP Business Network. Completing this assessment and uploading it on the profile means getting discovered by more buyers and simplifying the onboarding process. Buyers can easily find the information they need, and you can reduce the amount of redundant communication required. There again, ethical sourcing starts with suppliers given the means to proactively share relevant information.

3.  Generic APIs

Lastly, the trends list includes the use of Generic API. Generic APIs play a crucial role in modern software development by providing standardized, versatile, and reusable interfaces for interacting with various systems and services. While they offer significant benefits in terms of simplified development, cost-efficiency, interoperability, and scalability, they also come with challenges such as limited customization and potential performance overhead. Understanding the strengths and limitations of generic APIs allows organizations to leverage them effectively, achieving greater efficiency and agility in their software projects. As technology continues to evolve, the importance of generic APIs in fostering seamless integration and innovation will only grow, making them an indispensable tool in the developer's arsenal.

The e-procurement landscape is rapidly evolving, driven by technological advancements and changing business imperatives. Trends such as automation and AI, blockchain, cloud-based solutions, supplier collaboration, sustainability, and enhanced data analytics are not only transforming procurement processes but also delivering substantial business benefits. Organizations that embrace these trends are better positioned to achieve operational efficiency, cost savings, and strategic advantage in a competitive marketplace. As such, staying abreast of these trends and integrating them into procurement strategies will be crucial for businesses aiming to thrive in the digital economy.