12 for 12 #6: Procurement technology will help drive organisational change

Posted in: Analysis  
12 for 12 #6: Procurement technology will help drive organisational change

At the start of year we made 12 procurement and technology predictions for the year ahead. Each month we’re revisiting our predictions to see how we’re doing – this month Greg Staryk-Mills, Business Development Manager at Science Warehouse, runs a stethoscope over his view that ‘procurement technology will drive organisational change’.

In our predictions at the start of the year as part of our '12 for 12' series, I said: 'Procurement technology will drive organisational change. Technology offers the possibility of moving away from legacy processes through change by stealth. The leading technology providers offer solutions that are so easy to use organisations can drive change in practice with ease.’

Procurement is a core function of the business today. Gone are the days where procurement was called on just as buyers for the organisation. Today they help drive cost savings and overall performance of the business through software and services much like the front office.

The use of procurement intelligence to drive the purchasing strategy is also undergoing major change. High-quality intelligence is key to understanding and managing supplier risk. All this can be achieved through investment in solutions that can underpin this strategy but also deliver a rapid return on investment. SaaS (Software as a service) solution are leading the way in their ability to easily integrate with Finance Systems but providing an ‘IT Lite’ system enabling a rapid Return on Investment.

A key initiative by today’s Government and the Department of Health to focus on saving over £18 billion over the coming years focuses on using technology to align standards and bring control to the supplier community. Technology will play a key role in order to underpin this process. A recent report – "NHS Procurement: raising our game" - outlining guidelines for improvement within the National Health Service highlighted the following six key areas for improvement:

  • Levers for change
  • Transparency and data management
  • NHS standards of procurement
  • Leadership, clinical engagement and reducing variation
  • Collaboration and use of procurement partners
  • Suppliers, innovation and growth.

It is clear from the report that, in a diverse and complex environment such as the NHS, standardisation is critical to driving efficiency and savings. Furthermore, “implementable” technology (i.e. technology that is relevant, cost-effective and easy to adopt) is core to driving the standardisation process.

See how we did with our previous prediction: '12 for 12 #5: Apple is the new Microsoft'

- Greg Staryk-Mills

Do you agree procurement technology can drive change within the National Health Service? Can the use of software help achieve efficiencies across the NHS Trusts?

 


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