Business Process and Digital Transformation (Part-2)

Business Process and Digital Transformation

We continue the series of “Business Process and  Digital Transformation”.

In previously published part 1 [here] we used a fake company named “John Doe and Sons” to explain how digital transformation will affect their business process.

In Part 1 we explained how the adoption of DT affected “John Doe and Sons” and allowed more opportunities for suppliers, reduced procurement overhead, and added a great layer of transparency.

Recalling the example of purchasing business process from Part1

Request for Quotation -> Quotations -> Purchase Order -> Material Receipt Note + Vendor Invoice -> Vendor Payment

In this article, we will dig into how Digital Transformation will manipulate purchasing department issuing of RFQ.

As mentioned, the procurement module (software module) is responsible for issuing the RFQ, this can be totally automated based on a predefined set of rules and workflows such as the system can monitor current company assets, track their maintenance cycles, depreciation, usage count, etc.

And then automatically issues the RFQ without any human interaction. It can also apply business workflow for the issued RFQs

Such as waiting for purchasing manager to approve the automatically generated RFQ before publishing it to the suppliers.

It can also follow the company’s current cash status, current market status, etc. for the best time to publish the RFQ which will result in the best offer by nature, and so on.

As we can see, purchasing business process of chairs now changed dramatically.

The purchasing department has less impact on when, how, and from where items are purchased.

Better competition is proposed, and human interaction is reduced and controlled in a better manner with a good layer of transparency.

The system now can suggest the most adequate time to purchase by monitoring assets, as well as the market.

By adoption of Digital Transformation and the new system, “John Doe and Sons” reduced purchasing department workforce efforts, reduced the repeated tasks, and has the opportunity to utilize workforce efforts in other fields that will result in more profit.

Instead of preparing RFQ, following, these RFQ, etc.

Employees now are more concerned about the core business of “John Doe and Sons” and how to improve the company’s profit.

Digital transformation also utilized the company’s assets, reduced expenses, and increased workforce efficiency.

Finally applied workflow allowed the company to work in a more managed way and allowed managers and decision-makers to have insights

and forecasted information about usage, expenses, and utilization that will help them craft better marketing plans and annual budget plans.

Try asking for AtenTEC Business Management solutions to enhance your business process.

Eng. Hany Mamdouh, AtenTEC CEO

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