Digital transformation is the process of using digital technologies to improve business processes, increase efficiency, and gain a competitive advantage. Procurement plays a critical role in digital transformation for small businesses, as it can help them take advantage of new technologies and digital tools to improve their procurement processes and achieve better results. 

• Automation: Procurement professionals can use digital tools to automate and streamline procurement processes, such as sourcing, purchase orders, invoicing, and payments. This can help small businesses save time, reduce errors, and improve efficiency. According to a study by the Aberdeen Group, companies that use e-procurement achieve, on average, 12% lower costs than those that do not. 
• Data analysis: Procurement professionals can use digital tools to analyze data and gain insights into their procurement processes. This includes using data visualization tools to identify patterns and trends and using data analysis to make more informed decisions. By using data analysis, small businesses can identify areas for cost savings and improve supplier performance. 
• Collaboration: Procurement professionals can use digital tools to collaborate more effectively with suppliers, vendors and internal stakeholders. This includes using e-sourcing and e-procurement platforms to manage suppliers, and using digital collaboration tools to work with internal stakeholders. By using digital tools to collaborate, small businesses can improve communication and decision-making, and make better decisions about sourcing, purchase orders, invoicing, and payments. 
• Risk management: Procurement professionals can use digital tools to manage risks throughout the procurement process. This includes using digital tools to identify and mitigate risks, such as supplier defaults or natural disasters. By using digital tools to manage risks, small businesses can ensure that they are protected against potential losses. 
• Compliance: Procurement professionals can use digital tools to ensure compliance with laws and regulations related to procurement. This includes using digital tools to ensure compliance with the Federal Acquisition Regulation (FAR) and the Small Business Administration (SBA) rules. By using digital tools to ensure compliance, small businesses can reduce the risk of penalties and legal action. 
• Supplier management: Procurement professionals can use digital tools to manage suppliers more effectively. This includes using digital tools to identify and select the best suppliers, negotiate contracts, and monitor supplier performance. By using digital tools to manage suppliers, small businesses can ensure that they are getting the best prices and terms, and that suppliers are meeting their expectations in terms of quality, delivery, and price. 

In summary, procurement plays a critical role in digital transformation for small businesses. By using digital tools to automate and streamline procurement processes, analyze data, collaborate with suppliers and internal stakeholders, manage risks and compliance, and manage suppliers, procurement professionals can help small businesses improve their procurement processes, achieve better results and gain a competitive advantage. 

FactWise is a unified e-procurement platform with a fully integrated suite of procurement products. The platform is used by small companies to transform their procurement organization via analytics and automation.