I don't think it has been achieved at all. We think that this system must be applied. Only when it is used well can it show that your system has truly undergone digital transformation.
As a procurement digital service provider, Zhen Yun is deeply touched when serving customers.
Process breakpoints, but not fully procuring digital value
Let me tell you a story here. We have a large conglomerate. In the first stage, he put the end-to-end business process of procurement online, and he did a good job. But I found that his financial payment node still retains the original method. 70% of its business has indeed achieved digital and online procurement, but there is still 30% of such a business, which is completed offline, and then the financial payment is realized through another method.
Therefore, in the process of promoting the procurement digitalization project, it is necessary to close the gate of finance. If you do not go through such a business process through the procurement system, then you cannot allow him to make corresponding payments and related businesses. Node operations, so it needs to be fully online .
But we will find that there are many similar things in the process of our business landing, and it is not limited to this, not only the inertia of their use, but also a management reason. I have a client who has been digitizing the entire procurement of the group for more than a year. All businesses have an end-to-end business process online, but their non-production procurement mall is not very well applied.
He has many special reasons, because for example, the leader of a certain department is in charge of this area, and he does not want to standardize this business, and do such a landing through the mall.
For example, in his previous standardization of the entire purchased materials, all the costly purchased materials must have the product model. This has also led to the degree of their application in this area, and the utilization rate is relatively low. , so a procurement system can really create value only when it is used. If you can't use it , just realize some business processes online, and some businesses are still running online, then I don't think such a system can achieve the value of what we call digital procurement.
Digital procurement, the most important thing is to give full play to the ability of data analysis
Another very important point is the value of data usage . When we encounter data analysis, it is very troublesome when we talk to the purchasing director. What kind of report do you need? After a month of combing, I only need 8 reports, because it does not have the ability of data analysis. We think that the digitalization of procurement needs to be analyzed through data to improve business transformation. This ability is not only What our enterprises need to have, of course we will find that service providers like us that provide such digital transformation services to enterprises also need such a capability.
So last year, throughout the whole year, we communicated with many procurement directors, how to make such a procurement application system that you spent so much money to reflect its most important value through data analysis.
We have a client who feels that the procurement director is often challenged by other departments, saying that your procurement has a high delay. The procurement director is also very puzzled and said that because from the feedback below, the delivery date of my procurement has been shortened. Why is it reported that my delivery delay rate is so high?
Where is the core problem that we have shown it through a data analysis report of three sheets? In the first table, we can see the overall data of procurement operations. We can see that the procurement cycle of the entire enterprise is average every month, and the delivery time is declining. Then we will find that the purchasing department is actually improving the efficiency of its operations in essence.
But we will find that in the rationality of its procurement application, we will find that there are some data problems. For example, in a department like this, its emergency application rate is increasing, its application change rate is increasing, and its application approval rate is increasing. The length of time is increasing, so we found that he may affect his procurement delivery time, it may be because of such an application change, approval process and emergency change rate of the application department that we need to improve. of.
So let’s go on to analyze, we will analyze and say, if we take a look at all the detailed data of procurement, which procurement applications have problems with the rationality of their delivery dates, then we will analyze The corresponding reflection reflects what the standard procurement cycle looks like, to what extent we and our operations have improved, and what kind of reasonable procurement application delivery period do we need to submit? We do a good job in such a management and control work, this is just one point we are talking about.
We have a procurement director who has a habit, what habit? He will report to the chairman every week about the situation of his purchasing department this week. Why do you want to do this? We also have frequent purchases and always talk to me.
The procurement department is a difficult department. It is very important for him to have the trust of the boss, so he often releases information every week. What information is there? How many such purchase applications did he have in total this week? How much is in the budget? How much is out of budget? So how many of their total sourcing projects have ended? How much is there overspending? What are some projects that may have some bidding risk, and what is the amount of one happening this week? How much have material prices increased? How much has the lead time been reduced? How much is the cost qualified? What is the improvement rate of quality? For such a data, he wondered if we could output it to him through the system and display it to understand the business situation in real time.
Zhenyun's procurement digital system will generate a Zhenyun procurement joint report, that is, we will make such an analysis of the entire procurement situation for one year. What is included in it? For example, regarding the use of your entire system and your overall procurement expenditures this year, which company spends more? Which category costs more? Who are the top five suppliers? Which ones spend the most money? What is commodity sourcing pricing? Then we will see the overall overspending situation, cut-off situation, and the performance of our suppliers, the classification of suppliers, the proportion of suppliers, the level of suppliers, and our procurement department The performance of the company, the workload has increased and decreased in the case of various departments and companies. Therefore, we hope that through data analysis, we can maximize the value of the last link in the final implementation of our digital procurement.
Through such a data analysis, we can then improve the business, improve some applicability and related optimization points of our digital platform, and then generate new data, and then form such a continuous improvement. A procurement application system, and such a procurement operation efficiency system.
I think this is the key to our digital implementation. Of course, it is precisely because we also hope that in such a process, we can discuss with our customers or our potential customers how to make digitalization help each of our companies to form their competitiveness and form our innovation in all aspects of care.