Mobile procurement solutions have become increasingly popular in recent years, with the rise of smartphones and mobile devices. These solutions allow procurement professionals to access relevant information and complete tasks on-the-go, leading to increased efficiency and productivity. However, there are also potential drawbacks to implementing mobile procurement solutions. In this article, we will explore the pros and cons of mobile procurement solutions and how they can impact supply chain management.
Pros of Implementing Mobile Procurement Solutions:
- Increased Efficiency: Mobile procurement solutions empower professionals to access information and accomplish tasks anytime and anywhere, enhancing flexibility and mobility. This translates to heightened efficiency and productivity, as professionals can complete tasks on the go. McKinsey reports that companies embracing mobile procurement solutions witness a remarkable 30-50% increase in overall efficiency, owing to real-time access to information and streamlined task completion.
- Improved Data Quality: By enabling real-time data updates and access, mobile procurement solutions have a positive impact on data quality. Professionals can leverage this capability to reduce errors and enhance data accuracy, ultimately facilitating better decision-making. For instance, IBM has successfully implemented a mobile procurement solution, empowering professionals to update supplier information in real-time. This implementation has resulted in improved data accuracy, minimizing errors along the way.
- Enhanced Collaboration: Mobile procurement solutions can enhance collaboration between procurement professionals and other stakeholders in the supply chain. By enabling real-time communication and collaboration, professionals can work more closely with suppliers, finance teams, and other stakeholders to improve supply chain management. According to a report by Everest, mobile procurement solutions can improve supplier collaboration by up to 25%. This can lead to improved supplier relationships, better pricing, and more efficient procurement processes.
Cons of Implementing Mobile Procurement Solutions:
- Security Risks: While mobile procurement solutions offer exceptional convenience, it's crucial to acknowledge the inherent security risks they can bring. The portability of devices makes them more susceptible to loss or theft, potentially compromising sensitive information. In a report by Forrester, security emerged as top concern for organizations embracing mobile procurement solutions. To safeguard procurement data, it becomes imperative for companies to establish robust security measures and protocols.
- Limited Functionality: When compared to desktop applications, mobile procurement solutions might have limitations in terms of functionality. This can restrict the ability of procurement professionals to perform complex tasks and access all necessary information. According to a report by Bain, certain professionals may express a preference for desktop applications due to the more comprehensive functionality they offer, in contrast to the limited capabilities of mobile apps.
- Training and Adoption: Implementing mobile procurement solutions may require additional training and adoption efforts. This can be a challenge for companies with large procurement teams or employees who are resistant to change. One company that has successfully implemented a mobile procurement solution is Coca-Cola European Partners (CCEP). CCEP has implemented a mobile procurement platform that enables procurement professionals to access procurement information and complete tasks on-the-go. This has led to increased efficiency and productivity, as well as improved supplier collaboration. Intel stands as another successful example of adopting a mobile procurement solution which empowers professionals to access critical information and accomplish tasks seamlessly in real-time. This transformation has resulted in enhanced data quality and more informed decision-making throughout the organization.
In conclusion, mobile procurement solutions have both pros and cons, and their impact on supply chain management will depend on a variety of factors. Companies that choose to implement mobile procurement solutions should carefully consider the potential benefits and drawbacks and ensure that they have robust security measures in place to protect procurement information. Examples from prominent companies highlight the potential benefits of mobile procurement solutions, showcasing increased efficiency, improved data quality, and enhanced collaboration.
At FactWise, we are committed to building a distinctive procurement solution that delight users and provide sustainable positive impact to the organizations we serve. FactWise does this by providing transparency and insights to leaders (31% increase in governance), streamlining and automating processes to improve efficiency (20% increase in efficiency) and driving bottom-line impact by unlocking savings potential (25% cost reduction for direct spend).