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Procurement Transformation Imperatives for Malaysia in 2023 and Beyond

procurement transformation in Malaysia
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“A successful transformation is never an accident. It is the result of commitment to excellence, intelligent planning, and focused efforts.” And with this thought the Procurement Transformation Malaysia 2023 Summit kicked off. The summit also featured seminars on topics such as optimizing cost savings through strategic sourcing initiatives, leveraging technology for smarter supply chain decisions, developing an effective digital procurement strategy that works for your organization, and more.

Overall, the Global Procurement Transformation Summit in Malaysia provided a platform for industry professionals to connect, network and gain valuable knowledge on how they can maximize their effectiveness when it comes to managing their business operations with digital solutions. The aim of the summit was to empower Malaysian businesses with tailored solutions which will enable them to optimize costs while still meeting client needs in an efficient manner making digital procurement Malaysia a success.

At the Pullman Kuala Lumpur City Centre, a breakfast roundtable was set-up for C-Level Executives from organizations, including Affin BankBoustead Plantations BerhadKumpulan Wang Persaraan (Diperbadankan) – KWAP, Gamuda BerhadMalaysia Airlines Berhad, Agro BankGentari Renewables, and others. Visionaries and thought leaders from Malaysia joined us to provide practical insights, these include:

procurement

The forum served as a platform for Chief Procurement Officers (CPOs) and other procurement and sourcing leaders to share their vision about leveraging data-driven insights to create flexible and resilient supply chains. Procurement functions need to build a strong relationship with Tier 1 suppliers and develop capabilities aligned to Environmental, Social, and Corporate governance (ESG) goals. There is an incessant need for going beyond “some-what digital” to “truly digital” operations for business continuity, risk management, and operational excellence. Next-Gen Procurement technologies are driving significant changes in how businesses operate and undertake procurement. Cognitive procurement solutions enabling better decision-making with artificial intelligence (AI), machine learning (ML), and low-code automation capabilities automating tedious, repetitive procurement tasks and activities.

Want to take your understanding of cognitive procurement processes to the next level? Our latest whitepaper on “5 Cognitive Technologies to Look Out For in the Future” dives deep into popular cognitive technologies that are driving innovation in the industry. Learn how to compare them and determine which best meets your company’s needs and objectives! Get up-to-date information on AI, machine learning, natural language processing, big data analytics, and more. Find out how these technologies can help reduce costs and improve efficiency without compromising data accuracy or security. Read our whitepaper now to get ahead of the competition!

Procurement

Exploring the challenges for 2023 and beyond

As discussed in EY’s 2022 Global Chief Procurement Officers’ Survey, the following challenges came to the forefront and organizations need to prepare for them in 2023.

Cost Reduction

About 60% organizations are focusing on managing and reducing costs using procurement transformation and it is closely followed by increasing efficiency. With the goal of reducing costs, many organizations are turning to procurement transformation as a viable means to achieve their financial goals. Not only is it one of the main focuses for enterprises, but its success rate at growing efficiency levels has also been impressive.

Talent Acquisition

Securing the right talent is a challenge for many CPOs, with 44% citing it as a recurring issue. Finding the right talent to join your team should not be a prolonged process, taking strategic steps and leveraging modern tools can make all the difference!

Lack of budget

With digital transformation on the rise, it is startling to learn that 20% of organizations lack the necessary budget required for their transformation initiatives. This comprises of 44% of all global organizations that do not plan to digitize their procurement processes in the next few years. This leaves them behind in a digital business environment-, indicating financial constraints remain a strong barrier to success.

Developing supply chain resiliency

Procurement 4.0 is a modern approach to supply chain management that focuses on increasing resiliency and stability, allowing for enterprises to stay ahead of rapidly changing complexities in their markets. With over 90% of enterprises unable to keep up with changing trends of supply chain complexities, there has never been a better time than now for enterprises across the globe to harness this strategy. This would ensuring greater certainty and sustainability when it comes down to difficult times, such as a pandemic.

procurement

Exploring the strategic benefits of procurement digital transformation

Bottom-line Win

Enterprises with successful procurement transformation implementation registered a 15% EBITDA. This can be directly attributed to the improved visibility into spends and reduced errors, making the process more efficient and profitable.

Championing Implementation

There is over 70% chance of a successful transformation implementation when organizations focus on the human factors involved. Automation in an incremental or staggered manner can provide organizations with better capacity to support strategic decision-making.

Learn How to Streamline Your Process, Cut Costs and Drive Growth in Your Organization in our Whitepaper- A 4-Step Guide to Transforming Your Procurement Process.

Value of Co-Creation

By leveraging a supply ecosystem’s core competences, procurement can drive value creation through conceptualizing ideas and incubating them in the marketplace for global success. Innovation is at the forefront of this endeavor and a wider scale deployment enables it to reach maximum potential.

And finally, the study also noted that over 66% of organizations will be prioritizing digital transformation for Procurement over the next 1-3 years. With these numbers it is easy to see that digitalization is going to rise in 2023 and beyond. Organizations will not only improve their individual efficiency, but also increase competition within the industry by building on their business advantage.

To stay ahead of the curve, 44% organizations that do not have procurement transformation on their agenda for the upcoming years, they need to realign their strategies to match up to the looming competition.

It is time procurement and sourcing leaders have a dedicated strategy for Next-generation procurement. The near-term uncertainty would be a bit easier to tackle if organizations formulate their strategy and identify key tools and resources to achieve strategic objectives.

Read Here: CPO Agenda and Priorities are changing for 2023 & Beyond

Related Read: 

  1. How procurement automation can help in procurement transformation?
  2. How procurement automation can help in procurement transformation?
  3. 10 Best Practices for Procurement Manager in 2020
  4. Role of Procurement in Supplier Value Chain for Business Advantage
  5. White Paper – Unraveling Cognitive Procurement: Unlocking Efficiency With AI
  6. White Paper – Transforming Procurement Performance of Food & Beverage Industry with Zycus Solutions
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Namrata is a content writer with over three years of experience in the field. She has a Master’s degree in Marketing and is passionate about writing, and reading. Namrata loves experimenting with different genres of writing and enjoys working on creative projects. When she’s not writing, you can find her exploring new bookstores or spending time with her books.

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