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1. Digital Procurement
Trevor Tyler
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2. What is Digital Procurement
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In simple terms it is a combination of tools and processes combined with technology that
altogether enable Digital Procurement across the procurement landscape.
In this session I aim to break this down into bitesize components that by themselves
start the drive toward digitising the procurement function.
Nearly all of what you need exists today, most of you would have already have some
form of digital technology already in place. Any gaps can typically be solved with simple
technology solutions.

3. Procurement Landscape for Digitisation
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 Tracking of Supplier Savings
 Contract Renewals
 eAuctions
 Purchasing Cards
 Contract Creation (Library’s)
 Supplier Spend Analysis
 Supplier Risk Assessment
 Vendor Master data Management (new Suppliers)
 Approvals – all types
 Category Planning
 Procurement Governance
 Reporting – Transactional / Strategic
 Market Research
 RFx Templates
 Purchase Orders
Before we look deeper some, if not all, of the processes below will be familiar.
How may of these are using digital technology to fulfil these activities in your organisation?

4. Why and what are the benefits ?
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Tracking and reporting financial savings achieved through
procurement initiatives across your organisation.
Efficiency in ongoing production of category plans through
automation and data modelling.
Reduce your Procurement cost of function - use digital
technology minimising manual related tasks, allowing your
buyer to focus on the value added activities.
Reduce your transaction costs across the whole Source to Pay
process, including
Introducing higher levels of data integration and AI into
Supplier Spend analytics,
Enhance negotiation methods achieving a step change in
savings, on average 20%.
Digitise and Optimise your Contract Management, Renewal
and Reporting.
Identify and reduce Contract leakage.
Enhance Supplier Management processes.
Below is an example of some of the benefits that can be achieved through the use of digital technology.

5. What are the Challenges ?
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• No budget
• Business case difficult to justify expenditure.Cost
• Requires significant people investment, therefore not focused on
sourcing and contracting
• Overall timeline takes years not months
Time
• Procurement function focused on Sourcing
• Change management not a resident skillExperience
• No Centralised resource across the Source to Pay process.
• Tactical Vs StrategicReadiness

6. Category Planning Sourcing Contracting
Supplier
Management
Purchase
Order
Payments
Data
Analytics
Journey towards enablement of Digitisation
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Below is very high level ‘cheeky’ view of typical of the journey an organisation goes
through.
Journey to
Digitisation
Complete
Needs Attention
Maybe
have a
template?
All your
sourcing going
through your
system?
How is your
contract
renewal
process?
Tracking
Supplier
KPIs ?
All PO’s ? Invoice
mismatch
rate?
Have those
savings come
through?.
Impact of CPI
% changes on
your
contracts ?

7. Focus on Procurement - Category Planning
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Current
Market
Research
Data
Modelling
Supplier
Spend
Existing Data
Sourcing
&
Contracts
Saving
Targets
Planning ProcessRisk
Digitisation
Inputs
• Commodity market data
• Market trend data.
• Historic and predicted indices data
• Supplier data financials, risk score
• Costs
Outputs
• Supplier rationalisation
• Make or buy options
• Specification Rationalisation
By bringing this data into a common data model then using predictive
analysis to table your options from which you can create your Category
plan. Refresh this plan as and when needed against previous baseline.

8. Focus on Procurement - Sourcing & Contracting
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Often the focus is on establishing technology around the transactional side of procurement, however an
organisation will look to its Procurement department to its Sourcing and Contracting.
In many cases the technology will already be present to achieve a more significant digital footprint. Below are some
ideas on that may help drive this forward:
Contracts
• Establish a Central Corporate repository [no exceptions]
• Break down your contract and terms into a controlled parameter based library. Using predefined templates the
buyers can then incorporate additional terms from the library if required.
• Bring in external data to help model the optimum Contract.
Sourcing
• Use the Category planning process to drive your Sourcing Activity
• Utilise auctions as part of your standard RFP process
• Integrate your approval processes for Contracts and Savings into your Sourcing process
Optimisation
• Bring these two functions together, lining your sourcing activity to a Contract
• Drive your Sourcing automatically from your Contract Renewing process
• Integrate these processes into your Category plans.
• Introduce AI data analytics to expedite the Source to Contract process and decision making process.

9. Focus on Procurement - Savings
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Supplier
Saving
Targets
Agreed
across the
Organisation
Clear Plans to
deliver –
integrated
into Category
Plan
Saving
calculation
and
Approvals
Savings in the
Financial
Accounting &
Tracking
Processes
Calculating, Agreeing and Approving Supplier Savings are on the
whole a manual processes.
Digitising this process within the Procurement platform and
integrated into the Finance systems will help drive more
efficiency into the planning Sourcing and Contract management
processes.
Using clear definitions of how savings are calculated along with
AI techniques will enable you to easily identify and track these
initiatives within your Supplier base. Not to mention agreeing
and approving them within the wider organisation, then once
achieved track the benefits within the accounting processes.
This form of digitisation helps to understand the effectiveness of
the contract, which will then help inject more intelligence across
your commodity landscape identifying further opportunities.

10. What to do next & Summary
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In summary you most likely will already be on you own journey to a full digital procurement model,
some organisations may already be fully enabled across their landscape.
For those that are not I hope that this brief overview has given you some ideas, in short though I would
recommend the following:
• Review your current Procurement target operating model and put digital procurement at its
heart.
• Examine your all procurement processes in conjunction with your current system platform and
prioritise the non systems activity.
• Look at the holistic procurement process, not just the transactional.
• Take a look at your procurement cost of function, identify how automation can reduce the
manual admistration tasks.
• Drive towards to single data module for Procurement, consolidating Sourcing, Contract , Spend
and external data into a usable model

11. Xoomworks Digital Procurement Workshop
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 Review current procurement operating model
o Including summary numbers such as sourcing events, contract numbers, volume of POs,
estimated contract leakage….)
 Walkthrough current business processes:
o Category planning
o Procurement research
o Sourcing events (RFIs, RFPs, auctions)
o Contract, supplier and risk management
o Governance (approvals, authorities, workflows)
o Purchase to Pay process
o Procurement and management reporting
 Review Procurement strategy, target operating models, and savings targets
 Discuss solutions and optimisation to further digitise the procurement process
A typical one day workshop agenda includes:

12. Thank You for
Listening
Q & A
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