In today's rapidly digitizing era, purchase and procurement functions are facing immense pressure across organizations. The call for transformation is loud, and the time to respond is now. Whether in healthcare, manufacturing, or higher education, procurement departments are confronted with a range of challenges, necessitating the need for reshaping and innovation.
The mounting pressure to demonstrate value for money, improve process efficiency, and adhere to evolving regulations is colossal. Meeting the increasingly demanding Key Performance Indicators (KPIs), which now extend beyond cost savings to encompass supplier performance, contract compliance, and stakeholder satisfaction, adds to the complexity. The impact on businesses and stakeholders is profound. Suboptimal procurement operations can lead to cost overruns, regulatory penalties, and operational inefficiencies, especially in the higher education industry where these issues can directly affect the quality of education, reputation, and stakeholder trust.
The higher education landscape
The higher education sector grapples with its own unique set of procurement challenges. From managing complex vendor relationships, and ensuring regulatory compliance, to navigating strict budget constraints, the roadblocks are numerous.
Adding to these, the onset of the global pandemic has brought new concerns to light. The need to ensure uninterrupted supplies, adapt to remote learning and operations, and manage potential supply chain disruptions are all added pressures that procurement departments in higher education institutions are now facing. The implications of these challenges can be profound and far-reaching. In the long run, it could potentially jeopardize the quality of education, lead to compliance issues, and impact the institution's reputation.
BPM, workflow automation, and low-code/no-code: A trifecta for transformation
Addressing these challenges necessitates a fundamental shift in how procurement departments operate. Harnessing the power of BPM, workflow automation, and low-code/no-code platforms presents a comprehensive solution to these challenges.
Innovations in BPM offer opportunities to streamline processes, improve transparency, and enhance compliance. Workflow automation allows for quicker, more accurate processes, minimizing errors, and freeing up staff time for strategic tasks. In addition, the use of low-code/no-code platforms brings a radical change, enabling 'citizen developers' in procurement to build solutions that precisely meet their needs, optimize their workflows and harmonize their processes.
These innovations have changed the game in the higher education space.
The success story of Wyoming College: Workflow automation in record time
Central Wyoming College (CWC), committed to supporting student success, sought to streamline its purchase order (PO) process and reduce paper reliance. To achieve this, CWC selected dynamic forms for their quick implementation, and dynamic workflow routing capabilities. The solution included logic validation, cost center-based routing, Google Apps integration, reminders, and an escalation path. By automating their PO process, CWC streamlined operations, saved staff time, enhanced efficiency through Google Apps integration, accessed a task list for seamless reviews, and refocused on student-centric tasks. In less than 10 days, CWC could automate purchase order workflow reducing hours of staff time.
The impact of digital procurement transformation backed by statistical insights
The benefits of these transformations, supported by statistical data and research, are significant.
A study by the Hackett Group revealed that organizations could reduce procurement process costs by up to 45% by leveraging digital tools.
Gartner states that automation can reduce procurement processing costs by up to 50%.
According to a study by Aberdeen Group, organizations with a procurement management system in place had a 22% reduction in procurement costs.
Revolutionizing procurement with process excellence consultants
Process excellence consulting firms like XAAS Genie play a vital role in this transformation. With deep experience in business processes and low-code/no-code technology, XAAS Genie assists organizations in overcoming these challenges.
XAAS Genie is at the forefront of this change, helping organizations align their procurement operations with evolving landscapes and new board expectations.
