Why Digitalization is Raising the Bar for Transportation Procurement

CMO @ Xeneta at Xeneta
Aug. 29, 2017

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Why Digitalization is Raising the Bar for Transportation Procurement

  1. Why Digitalization is Raising the Bar for Transportation Procurement
  2. Join The Conversation On Twitter @XENETA_AS
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  5. When it comes to determining the most effective of procurement companies, the crucial factor comes down to technology. While technology has always played an important role, it will be the digital transformation in procurement that separates the wheat from the chaff when it comes to world class performance and world class operations.
  6. Digital supply chain procurement comes in the ability to outpace and outperform companies that aren’t taking advantage of the technology.
  7. Seeing the Difference with Digital Procurement
  8. There are a number of companies who have benefited from digital procurement services across a wide number of industries. However, with their 55,000 TEU's spread out over 6,000 shipping lanes, Akzo found it difficult to use this volume to obtain competitive ocean freight rates according to a case study from Xeneta. AkzoNobel, for example, a multi-product, multi-divisional and multi billion dollar global chemical company, ship a wide array of polymers, inorganic and organic chemical products from their 43 factories worldwide, with an annual container usage of 55,000+ TEU's.
  9. Actionable data offers invaluable insights for companies looking to optimize their operations. The final result is improved operational efficiency combined with reduced operating costs which can make a considerable difference for any business that’s seeking to do more than simply break even.
  10. Digital Procurement Trends: Putting Your Customers First
  11. Digital procurement trends have also lent a hand in letting companies cater more to their customers’ needs.
  12. Past technology-driven transformations automated processes within and between enterprises. In contrast, digital transformation uses technology to engage internal and external customers through interactive cloud-based tools and portals, to provide better service to stakeholders, and to leverage big data and predictive analytics for better, faster insight, - Hackett Group
  13. Access to data in real time means creating a predictive or “what-if” model which can be invaluable to risk mitigation and management.
  14. Knowing what could happen, can make the difference in actions taken if it does happen. Predictive modeling is just one of the many advantages to be gained by having access to more data in a timely manner.
  15. Digitalization Drives Change
  16. The freight industry has been fairly static for quite some time, even at the risk of becoming stagnant. Digital procurement and digitalization in the industry are changing that. In fact, it is the digital transformation that is increasing the speed of change.
  17. As companies gain access to more efficient practices, information and actionable data, the pace of technological evolution is accelerating as is the speed of adoption and adaptation to these new technologies.
  18. Analytics-driven insight, or a procurement function that relies on big data and advanced analytics to drive insight and bolster decision-making The hallmarks of information-centric, world-class procurement organizations are the presence of a sophisticated information/data architecture that makes effective data analysis possible - Hackett Group
  19. Learn How Xeneta Can Help You Get Insight And Intelligence Into Your Global Ocean Freight Prices And Change Your Logistics Business: Request Demo
  20. ROI - A Self Fulfilling Strategy
  21. Return of Investment represents a major consideration for most companies when it comes to implementing new technologies. The shorter the ROI, the faster companies can start making a profit on the new changes. However, even the ROI for the world-class group is starting to slow down. As cost reduction and savings are expected to level out over the new few years, companies, even world-class, will have to find other methods of creating value. According to the study, for world-class procurement groups that embrace digitalization and establish a digital procurement system the ROI is significantly higher.
  22. From start to finish, every piece of useful information that can be gleaned needs to be marked, filed, and processed into something useable. Understanding this and implementing it will create the hallmark for success, while failure to do so will put companies at risk of being outmoded and outdated.
  23. However, as always we must be mindful of the training needed to make this a reality. The intent is not to have misplacement of workforce, but rather train the workforce to think differently by understanding how digital procurement practices can improve and optimize everyday work tasks.