How procurement technology can engage employees across all sectors

Organizations in all sectors need to do all they can to retain valuable employees, and one way they can do that is by ensuring those employees have all the tools they need to do their jobs.

From a procurement perspective, this means making sure employees have access to easy-to-use systems so they can find and buy the items they need when they need them, in an efficient manner.

This involves making use of new technology such as artificial intelligence, including machine learning, which can deliver much more personalized buying experiences. Research by Gartner finds that half of procurement contract management will be AI-enabled by 2027.

An effective procurement solution can also help organizations deliver on sustainability objectives, which are increasingly important to both customers and employees. This is because more spend can be directed through preferred suppliers, which can be assessed by procurement teams on their sustainability credentials before making a preferred supplier list. A study by The World Economic Forum finds that 60 per cent of companies focus on sustainable procurement, partly in response to such pressure.

The following sectors are just some of those that can boost employee satisfaction and retention through a more effective and efficient procurement offering:

Financial services: With large numbers of physical outlets, ensuring each location has the right equipment required is no small job. Amazon Business can help here, through tools such as Guided Buying and Business Prime, which offers personalized delivery options. This can result in better customer service which, in turn, can enhance employee satisfaction and boost retention.

From a recruitment perspective, financial services organizations need to attract talented graduates and other young people in a highly competitive market. This generation cares deeply about sustainability, so being able to demonstrate firm commitments to sustainable sourcing can help attract top talent. Through its Spend Visibility tool (included with a Business Prime membership), Amazon Business allows businesses to show how much progress has been made, including by how much the percentage of spend with sustainable suppliers has increased.

• Manufacturing: Whether in the field or on the factory floor, manufacturing teams need the right products supplied within tight timeframes to deliver projects on time and under budget. Easy approval processes, transparent pricing and no minimum order requirements are also important considerations.
• Travel: Digitizing procurement processes such as inventory management is hugely significant for travel and hospitality companies, which often operate on tight margins. Improving operational efficiency means employees have more time to focus on providing a human touch to their customers’ travel experience and hospitality, enhancing the possibility of upselling.
• Healthcare: With staff shortages and multiple responsibilities, clinicians and managers need access to a wide range of items, often at short notice. Solutions that can reduce time spent on buying can help staff get back to their core responsibilities such as patient care, so ease of navigation is particularly valuable here.
• Non-profit: With a wide range of responsibilities in a cost-conscious environment, employees in the non-profit sector require cost-effective solutions that reduce their workload and simplify procurement. Amazon Business offers tools such as Lists and Subscribe & Save which can help put procurement on autopilot, potentially reduce burnout and let employees focus on their wider missions.
• Education: Educators constantly need to procure essentials for schools, colleges and universities, and be able to handle efficient procurement processes. Lifting their manual administrative burden by finding low prices and trusted suppliers allows them to concentrate on developing students and helping them to achieve their potential.

Effective procurement in action

Organizations from many different sectors are already taking advantage of more efficient procurement systems, including drawing on the potential of AI.

Global non-profit firm The United Service Organizations (USO) supports service members and their families with vital supplies. Any delays in procurement can have real consequences, both for those who need help and in demotivating employees, whose passion is to assist those in need of support.

It recently overhauled its sourcing and finance processes, implementing a procure-to-pay solution from Coupa, including integrating Amazon Business through punchout technology.

This allows employees to access Amazon Business through the Coupa system, helping to cut down processing times and ensuring fast, free delivery via Business Prime. Employees benefit from the same customer experience they have in their personal lives, removing previous frustrations with the procurement process.

For those in procurement teams, this means purchases are made with preferred suppliers in line with agreed spending policies, while also improving spend visibility.

The new set-up means the USO can source supplies, manage regional budgets and support programs such as the Bob Hope Legacy Reading Program through one trusted system.

The business also benefits from efficiencies as a result of automation and a self-service model which can reduce workload and speed up the delivery of essential supplies. In turn, this has saved time and money, which has been reinvested into programs for service members and their families, boosting the USO’s mission and helping to engage employees.

Another example is global manufacturing solutions firm Jabil, which had almost $6 billion in indirect spend across multiple regions, spread across multiple suppliers.

The business needed to get more control over this tail spend, by directing spend to preferred suppliers and ensuring it benefited from competitive pricing and economies of scale.

Jabil’s solution was to roll out Coupa’s Business Spend Management system as part of a wider transformation strategy, and deploy Amazon Business as a punchout option for tail spend. As well as cost savings, this generated a much simpler order management and invoicing platform, helping to create efficiencies for colleagues in finance teams.

Meanwhile, other employees benefit from a better user experience and more efficient process which, combined with the use of tools such as Amazon Business’ integration and Guided Buying (a paid feature), has contributed to a 40 per cent increase in spend directed to preferred suppliers.

Originally published on Business Reporter.