Transforming procurement alongside manufacturing

Today, manufacturing serves as a vital engine powering business success.  In a world where speed, reliability, predictability, and cost can make or break a product launch, manufacturers are taking a fresh look at how they buy, who they buy from, and the systems that support those decisions. 

Many companies are removing outdated manual workflows and disconnected software that slow down processes and introduce errors. Instead, they embrace digital procurement tools designed to streamline operations, improve visibility, and create competitive advantages. 

"Our customers expect more than automated procurement tools. They are looking for systems that enable their organization to anticipate challenges and needs: and partners that can grow and add value across their supply chain," says Patrick Sherrill, head of enterprise solutions for manufacturing and industrials at Amazon Business. 

Bridging the procurement gap

In many manufacturing organizations, procurement still struggles under the weight of manual processes. Approvals get stuck in long chains, purchase requests are challenging to track, and data is scattered across various platforms. These disconnects waste time, increase errors, and limit insight into spending patterns. 

Sherrill's team is focused on building a more integrated and agile approach. Their solutions connect procurement systems seamlessly within existing ERP platforms, automating routine approvals and policies and providing real-time insight into spending data. This transformation doesn't just accelerate buying; it turns procurement into a source of strategic strength. 

"Our customers expect more than automated procurement tools. They are looking for systems that enable their organization to anticipate challenges and needs; and partners that can grow and add value across their supply chain."

Access to accurate, up-to-the-minute data allows procurement teams to spot cost-saving opportunities, identify supplier consolidation options, and enforce policy compliance without burdening users. 

Features like Guided Buying help employees select approved vendors quickly, keeping procurement aligned with company goals without sacrificing convenience. 

Success stories from the field

The proof is in the results. Jabil, a global leader in manufacturing solutions, has embraced digital procurement to streamline its processes and build stronger supplier relationships. 

Heide Banks, senior director at Jabil, shares, "We've driven more than 40 percent improvement in our spend through the catalog and strategic partner use."

This improvement isn't just about saving money. It creates agility, helping Jabil respond swiftly to market demands and maintain a competitive edge. 

Similarly, ABM Industries has benefited from leveraging marketplace competition and analytics. 

Stefanie Bensmiller, director of procurement, indirect at ABM Industries, highlights how this flexibility translates into cost advantages: "I can choose supplier A over supplier B and still get a competitive price...within Amazon Business."

These examples illustrate a larger shift - procurement is evolving into a proactive business partner rather than a routine task. 

Eliminating longstanding pain points

One of the manufacturers' most common challenges is reconciliation - matching purchase orders, receipts, and invoices. Traditionally, this manual process consumes valuable time and introduces errors, delaying payments and complicating audits. 

In this case, automated 3-Way Match tools are recommended to compare purchase orders, invoices, and receive documents simultaneously. These tools can instantly flag discrepancies and accelerate approval workflows. The benefits are significant: reduced errors, faster payment cycles, and more robust audit trails. 

This automation gives teams greater confidence in their financial data and frees time for higher-value work. It is a practical solution to a problem that has long challenged procurement. 

The future of procurement

In the coming years, procurement will be predictive, integrated, and focused on supporting environment goals. It's about more than just cutting costs - building resilient, responsible supply chains that support long-term growth. 

This aligns procurement with wider corporate priorities, such as social responsibility and operational resilience, making it a key driver of sustainable business success. 

Procurement as a growth catalyst

Procurement has evolved far beyond simply handling orders. When closely integrated with strategic goals, it enables teams to work more efficiently, speeds up decision-making, enhances supplier relationships, and drives tangible business outcomes. 

Under the guidance of leaders like Sherrill, manufacturers are turning to digital tools to transform procurement from an administrative burden into a strategic advantage. 

Smart procurement can drive faster operations, reduce costs and enhance compliance, while freeing teams to focus on innovation and growth. It's no longer an afterthought, but a critical part of how manufacturers win in a fast-changing landscape. 

Originally published on Manufacturing Technology Insights