Phase Four: Primed for The Future
Congratulations, your Digital Maturity score is as high as a respondent is expected to reach.
Few firms have reached Stage Five: Fully Automated, in no small part because the technology to do it is still in its infancy. You’ve nearly reached the limits of what ‘off-the-shelf’ enterprise software can provide. Almost all your software platforms are integrated with each other and you likely have API’s in at least one domain of procurement.
The challenge now is having API’s across all domains of procurement, having a clear view of where the future is heading, and deploying new technologies and software platforms when they’ve sufficiently matured.
The Transition to Phase 5: Fully Automated
The transition to Fully Automated is one that sees fewer employees engaged at every step of the procurement process across all five domains.
Management dashboards are no longer used to make (many) decisions, but rather to regularly review processes for quality control and debugging.
Phase Five is a context in which things just happen because they were programmed to. Phase Five domains of procurement look like this:
Payments and Authorizations:
ERP receives immediate confirmation of delivery as soon as the cargo container is scanned after it is loaded onto the ship, and automatically authorizes payment to the supplier.
Negotiations and Ordering:
Fully automated negotiations process that uses data from historical supplier performance, material price trends, economic models, Monte Carlo bidding simulations and automatically manages offers and counteroffers with suppliers.
Compliance information from 3rd parties is automatically pulled via data feeds from compliance organizations such as BSCI.
Auditors use mobile apps to create and file reports directly from the factory floor. All data is submitted and updated in real-time in the application. The system notifies sourcing staff when auditing status.
Factories are equipped with IoT devices that automatically generate QA and production information directly from the machines themselves. No or drastically reduced need for in-person inspections. “Lights out” factory concept.
Fully automated logistics. Makes heavy use of NFC/IOT to attain always up to date manifests and inventory levels from sensors.
No human counts or scans required. Computer systems analyze historical demand and future demand projects to manage inventory levels and shipments from DC’s. Little to no interaction from humans required.
"We were referred to Visichain by a few people including someone high up at Goldman Sachs. Once I got in touch with Visichain, they quickly understood our problem. We gave them one process to fix as a trial: they were able to get the process off excel in 30-days. They moved forward with no disruption to our business processes. Then we continued to engage Visichain and now have them integrating all our systems -- a challenge another major consultancy failed at and Visichain has succeeded with. They are really responsive to all of our feedback and adjusted to our demands.
CIO, Top 10 European Retailer
Hong Kong Based Purchasing Office of Major Global Retailer
The company faced an insurmountable problem with their supply chain processes because email and excel were being used to manage thousands of suppliers...
Confidence in data was a nightmare...
"We now have thousands of factories and supplier relationships transacting billions a year in trade operating on the system Visichain built for us."