Future of Sourcing - Robotic Process Automation (RPA) https://futureofsourcing.com/tags/robotic-process-automation-rpa en Attention Robots and Humans: Can We All Just Get Along? https://futureofsourcing.com/attention-robots-and-humans-can-we-all-just-get-along <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/The-Future-of-Work.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/The-Future-of-Work.jpg" title="With organizations facing the Great Resignation, many are realizing that human influence and ingenuity are still very vital components to the world of work as we know it." class="colorbox" rel="gallery-node-2210-e8RQjS4sV_g"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/The-Future-of-Work.jpg?itok=3O7u2xkq" width="624" height="325" alt="With organizations facing the Great Resignation, many are realizing that human influence and ingenuity are still very vital components to the world of work as we know it." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>With organizations facing the Great Resignation, many are realizing that human influence and ingenuity are still very vital components to the world of work as we know it say Christian Bason, Ph.D and Martin Skibsted in their new book Expand: Stretching the Future by Design. With these dynamics, they argue, some industry and design innovation experts are now saying that societies, workplaces and businesses of all types will now have to start to embrace strategies that will allow both the bots and humans to actually get along, and work together to build a more sustainable workplace for our future.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/taking-the-mystery-out-of-ai">Taking The Mystery Out Of AI</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Global population forecasts say the world&rsquo;s population will reach almost 8.5 billion by 2030. With the speed at which AI, computational processing power and robotics are developing, it is safe to predict that the global workforce and demands will change markedly in the near future. Job functions will transform rapidly following the pace of technology, so a priority should be to have a workforce that is educated and adaptable, ready to adjust to changing competency demands.</p> <p>As we argue in our book, &ldquo;<a href="https://expandthefuture.com/" target="_blank">Expand: Stretching the Future by Design</a>,&rdquo; these demands will be shaped by how work processes between man and machine are designed. Will the machine&rsquo;s analytical power replace human power? Will the human presence in some job functions become obsolete? Those questions are framed mistakenly. It&rsquo;s not a question about replacing one or the other; it&rsquo;s about how machines and humans supplement each other.&nbsp;</p> <h1>Can Bots and Human Get Along?</h1> <p>Pioneering designers and industry players are talking about how humans and machines can work together for the greatest benefit. The smartest questions aren&rsquo;t designing the fastest CPU or the strongest robot. AI and robotic development will be about developing the best teams, processes and user experiences.</p> <p>Designers will be looking at solutions where humans and machines complement each other to democratize the potential of both. Computational power should not be reserved only for the brightest specialists, but for everyone. We will increasingly live and work with robots built for collaboration.</p> <p>As Andrew Maynard, a professor at Arizona State University has pointed out, there is much we can learn about the future of human-machine interaction and the real dilemmas involved in science fiction movies. Take the first Pacific Rim movie from 2013 as an example. In the movie, we follow the unlikely hero Raleigh and his brother Yancy. Raleigh describes the pair &ldquo;...you wouldn&rsquo;t have been picked by my brother Yancy and I for heroes&hellip; No chance. We were never starring athletes, never at the head of the class, but we could hold our own in a fight. And it turned out we had a unique skill: we were drifting compatible.&rdquo;</p> <p>Being &ldquo;drift compatible&rdquo; means that the two brothers are able to work as a team while neurally linked to control a giant killer robot, the Gipsy Danger. The brothers are neither bright nor strongest but still form a great team. Compared to the other killer robots and monsters in the movie, Gipsy Danger is also neither the strongest nor best-equipped, but nonetheless, it is the most successful. Why? Because the brothers and their robot form a formidable team.</p> <h2>Are Human-Robot Teams Possible?</h2> <p>A key question becomes this: What does it take to create human-robot teams that don&rsquo;t just get along but are formidable? Recently, researchers at Aalborg University in Denmark have explored this question by focusing on trust: What does it take for people to trust robots? And what happens if people trust robots too much? Too much trust in self-driving cars might get the driver killed, as this happened to a Tesla Model S driver in a 2016 Florida accident. At the workplace, trusting a large industrial robot beyond what is warranted can lead to equally dangerous situations (a person can be knocked to the floor, or worse if an XL-size robot hits it accidentally).</p> <p>In the former case of too little trust, workers will simply choose not to work with the robot and the firm&rsquo;s investment in the technology will lose value. To explore how trust is affected by robot behavior, the researchers at Aalborg University have tried speeding up a collaborative robot in unpredictable ways while measuring workers&rsquo; physical responses. After the experiment, people indicated they were less likely to trust the robot due to their erratic behavior. Next up: Real-time experiments where humans and their robot collaborators will work on advanced carbon fiber weaving tasks &ndash; some of the more complex processes in auto manufacturing.</p> <p>We should approach the future of robotic design in the context of humans and machines working together forming the best teams. A survey of a thousand companies working with AI published in Harvard Business Review stated in 2018 that &ldquo;... Most activities at the human-machine interface require people to do new and different things (such as train a chatbot) and to do things differently (use that chatbot to provide better customer service). So far, however, only a small number of the companies we&rsquo;ve surveyed have begun to reimagine their business processes to optimize collaborative intelligence.&rdquo;</p> <p>Collaboration between man and machine will be the key to how innovation in the field of <a href="https://futureofsourcing.com/manage-suppliers-with-ai-powered-negotiations">AI and robotics</a> will grow in the near future. The best designers will know that product development will not be about replacing humans, but rather seeing how the interaction between humans and machines across various fields can be optimized and simplified.</p> <p>How do machines and humans complement each other? How can they interact smoothly and successfully? Garry Kasparov, the world&rsquo;s last human chess world champion, wasn&rsquo;t the only one to reach that conclusion after his games against IBM&rsquo;s Deep Blue AI. His &ldquo;opponent&rdquo; IBM is actively working to ensure that design thinking is applied in all aspects of the business. Today, at least 110,000 of the company&rsquo;s 388,000 employees are applying design thinking methods to develop the company&rsquo;s business domains such as AI and CPUs. IBM is iterating and experimenting with how they can improve the user&rsquo;s experience of working with computational power. This is because we need more than humans and robots just getting along. We need them to create value together that neither man nor machine could realize on their own.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital-transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Transformation</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Attention Robots and Humans: Can We All Just Get Along? - Future of Sourcing" addthis:url="https://futureofsourcing.com/attention-robots-and-humans-can-we-all-just-get-along"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 01 Aug 2022 02:00:00 +0000 Christian Bason 2210 at https://futureofsourcing.com https://futureofsourcing.com/attention-robots-and-humans-can-we-all-just-get-along#comments The Future of the Supply Chain is Data Driven https://futureofsourcing.com/the-future-of-the-supply-chain-is-data-driven <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/The-Future-Supply-Chain-Data-Driven.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/The-Future-Supply-Chain-Data-Driven.jpg" title="Learn how big data and analytics can help organizations at every level of the supply chain to increase efficiency, productivity, resource management and spending." class="colorbox" rel="gallery-node-2155-e8RQjS4sV_g"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/The-Future-Supply-Chain-Data-Driven.jpg?itok=2TeFiK8k" width="624" height="325" alt="Learn how big data and analytics can help organizations at every level of the supply chain to increase efficiency, productivity, resource management and spending." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>Today&rsquo;s global supply chain is faced with unprecedented challenges and data-driven innovation may be the only way forward, says Emily Newton, Editor-in-Chief of <a href="https://revolutionized.com/" target="_blank">Revolutionized</a>.&nbsp; She shares how big data and analytics can help organizations at every level of the supply chain to increase efficiency, productivity, resource management and spending.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/the-importance-of-building-and-maintaining-a-visible-sustainable-supply-chain">The Importance of Building and Maintaining a Visible, Sustainable Supply Chain</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <h1>What Does a Data Driven Supply Chain Look Like?</h1> <p>The key to improving any system is information. A data-driven supply chain is built around this concept, leveraging big data and analytics to improve processes at every level of the supply chain. A wide range of technologies contribute to this, from interconnected IoT sensors to warehouse robots and everything in between.</p> <p>A data-driven warehouse, for example, uses real performance data to identify exactly where and how to integrate a robot into its operations. Similarly, a data-driven trucking company uses real-world traffic, weather, and road data to optimize routes and maximize fuel and time efficiency. Data-driven solutions like these are exactly what today&rsquo;s supply chain needs.</p> <h2>Solving Today&rsquo;s Supply Chain Issues With Tech</h2> <p>The supply chain crisis has made it clear that the supply chain needs to evolve to meet today&rsquo;s challenges. Technology is the only way of accomplishing that. At the heart of the supply chain&rsquo;s technological transformation is data. Only through big data and analytics can we pinpoint the roots of the supply chain&rsquo;s issues and resolve them.</p> <p>For example, one of <a href="https://www.nytimes.com/interactive/2021/12/05/business/economy/supply-chain.html" target="_blank">the initial driving factors</a> behind the supply chain crisis was skewed supply and demand predictions from manufacturers and retailers. Demand for many products was underestimated, causing supply to be insufficient. Data-driven demand forecasting could help prevent this situation from occurring again. The same technology could be applied throughout the supply chain, from shipping to last-mile traffic.</p> <p>Data has also become critical in the warehousing industry. In the midst of a severe shortage in warehouse real estate, warehouse owners and managers need to leverage data to maximize the value of the space they do have. Data-driven warehouses can operate more efficiently, maximize the usage of every square foot and optimize inventory management.</p> <p>Arguably the most challenging issue in the supply chain today is <a href="https://www.bloomberg.com/graphics/2021-congestion-at-americas-busiest-port-strains-global-supply-chain/" target="_blank">congestion at international ports</a>. Data-driven ports could work with shipping companies to manage traffic and minimize waiting times. On the domestic end of things, trucking companies could use data to maximize the efficiency of their operations, which would help reduce ports&rsquo; container traffic.</p> <h2>Innovating the Data Driven Supply Chain</h2> <p>Data will completely change the way organizations throughout the supply chain operate. Collecting and analyzing data to find solutions is only the first step, though. Data will continue to drive innovation in the next-generation supply chain, building resilience and improving sustainability at every level.</p> <p>For example, with extensive data, manufacturers can reduce waste through improved forecasting and optimized, automated production. AI and robotics will improve the quality control process, which will help collect even more data for manufacturers to use for further improvements. Similarly, warehouses and shipping companies can reduce waste by automating the picking and packing process, which will also boost efficiency.</p> <p>Collaboration and transparency will be critical to improving the state of the supply chain in the years ahead. Manufacturers, retailers, and shipping companies need to be able to coordinate effectively and in real-time, with cutting edge logistics. This is already leading many organizations to work with 3PL logistics providers. Logistics specialists will be critical to the future of the data-driven supply chain, <a href="https://expressitdelivery.com/blog/a-guide-to-choosing-a-3pl/" target="_blank">asset-based and non-asset-based</a> alike.</p> <p>Coordination in logistics ensures that the various links of the supply chain are operating together as effectively as possible, with all of the data available. Logistics is especially important in warehousing. With so many individual objects to manage, it is easy for warehouses to operate inefficiently without the problem becoming noticeable. Experts have pointed out that data-driven logistics would drastically <a href="https://www.mckinsey.com/business-functions/operations/our-insights/big-data-and-the-supply-chain-the-big-supply-chain-analytics-landscape-part-1" target="_blank">increase visibility within warehouses</a>. This opens the door to optimization for inventory organization, employee management and automated warehousing.</p> <h2>The Role of IoT, AI and Robotics</h2> <p>Robotics, artificial intelligence (AI) and the Internet of Things (IoT) are transforming virtually every industry already. These technologies will be a critical part of the data-driven supply chain, helping to both collect and apply big data.</p> <h3>Robots</h3> <p>Robotics have been on the rise in the supply chain for years. Experts have long been in agreement that <a href="https://revolutionized.com/the-future-of-your-supply-chain-involves-robotics/" target="_blank">robots will become a natural part</a> of the supply chain&rsquo;s workforce in the years ahead. From robotic arms to roving courier robots, these machines are filling the gaps in the supply chain&rsquo;s labor shortage. They are giving warehouses an edge over competitors through next-gen efficiency and productivity, and they are helping employees work safer and smarter.</p> <h3>Artificial Intelligence</h3> <p>Physical robots are backed by software and data that is no less important, though. Artificial intelligence is the key to moving robots beyond simple machines. It is also crucial to creating fully automated warehouses and manufacturing facilities, which will help reduce delays in the supply chain.</p> <p>Artificial intelligence can help sort and analyze large quantities of data, faster and with more accuracy than people often can. This allows for detailed, realistic logistics simulations and forecasting as well as maximum optimization in operations. In fact, AI can even be used to automate customer service, which will help retailers and shipping companies stay on top of things during high-traffic times.</p> <h3>Internet of Things</h3> <p>If robotics is the hands of an automated supply chain and AI is the brain, IoT is the senses. IoT devices form a vast interconnected web of real-time data collection tools. A few IoT sensors around a manufacturing facility can spark numerous invaluable benefits, such as cost reduction and greater efficiency. With the extensive data collected by IoT devices, the supply chain can be continuously fine-tuned.</p> <p>What differentiates IoT sensors and devices from non-IoT connected devices is communication. Not only do these devices collect accurate data, they can communicate that information in real-time, relaying it to other devices. This gives supply chain organizations a live overview of exactly how their facility or asset is performing, from trucks to assembly lines and everything in between. A great example of <a href="https://www.businessinsider.com/iot-supply-chain-management-logistics" target="_blank">IoT in action is RFID tracking</a> for robots and inventory around warehouses, which has become popular over the past couple of years.</p> <h2>Advancing the Supply Chain Today</h2> <p>The global supply chain is in the midst of unprecedented challenges. The situation will take time to repair and improve, but technology can help. The supply chain is already in the process of evolving and adapting, becoming data-driven in order to survive and thrive. Data will enable recovery and long-term growth at every level of the supply chain. This widespread digital transformation will create benefits for manufacturers, retailers, suppliers, shipping companies, employees and customers alike.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/big-data" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Big Data</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/internet-of-things-iot" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Internet of Things (IoT)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/digital-transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The Future of the Supply Chain is Data Driven - Future of Sourcing" addthis:url="https://futureofsourcing.com/the-future-of-the-supply-chain-is-data-driven"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 25 Mar 2022 02:00:00 +0000 Emily Newton 2155 at https://futureofsourcing.com https://futureofsourcing.com/the-future-of-the-supply-chain-is-data-driven#comments Happening Now: 5 Important Procurement Trends https://futureofsourcing.com/happening-now-5-important-procurement-trends <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/5%20Important%20Procurement%20Trends.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/5%20Important%20Procurement%20Trends.jpg" title="5 trends of top-performing procurement teams and how technology helps them maintain a competitive edge." class="colorbox" rel="gallery-node-2148-e8RQjS4sV_g"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/5%20Important%20Procurement%20Trends.jpg?itok=AlczhYgF" width="624" height="325" alt="5 trends of top-performing procurement teams and how technology helps them maintain a competitive edge." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>Procurement teams are still facing challenges like supply disruptions and managing cash flow, says Mohammed Kafil, a procurement consultant with Kissflow Procurement Cloud. He outlines five trends of top-performing procurement teams and how technology helps them maintain a competitive edge.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/top-5-strategies-to-improve-supplier-relationships">Top 5 Strategies to Improve Supplier Relationships</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>COVID-19 changed the world as we once knew it. While every business activity was affected in one way or another, procurement processes suffered the most as restrictions on the movement of people and goods wreaked havoc on supply chains around the world.</p> <p><a href="https://www.mckinsey.com/business-functions/operations/our-insights/resetting-supply-chains-for-the-next-normal" target="_blank">According to McKinsey</a>, 73% of CEOs stated COVID-19 caused challenges in their supply chain. COVID-19 had the most immediate and visible influence on these supply networks in terms of supply. Due to customer concerns regarding supply, there was a noticeable spike in demand for specific items.</p> <p>This worsened problems that were already prevalent across the supply chain, resulting in true supply stress. As a result, challenges emerged like demand and supply concerns, managing cash flow and working capital, sustaining profitability and assuring access to crucial commodities.</p> <p>These pandemic-driven disruptions taught us to adapt with the help of new strategies and technologies. Here are the five most important procurement trends that successful organizations are embracing to mitigate procurement challenges.</p> <h2>1. Digital Procurement</h2> <p>The emergence of digital technologies like <a href="https://kissflow.com/procurement/procure-to-pay-solutions/" target="_blank">procure-to-pay software</a> and their influence on procurement has been forecasted as a procurement trend for quite some time. However, COVID-19 made it evident that our procurement processes critically require the use of technology to help businesses reap numerous benefits.</p> <p><a href="https://www.thehackettgroup.com/news/digital-transformation-helping-procurement-do-more-with-less/" target="_blank">According to a Hackket Group report</a>, procurement will make significant investments in cloud-based business applications and data management technology, including data visualization, master data management and advanced analytics.</p> <p>The adoption of spend optimization analytics and dashboarding is also increased. As a result, the deployment of e-procurement technologies is predicted to roughly double in the next several years.</p> <p>The use of mobile computing and robotic process automation (RPA) has also skyrocketed, reflecting a shift toward more efficient, flexible procedures across the procurement lifecycle. As a result, RPA has the fastest adoption rate among digital technologies, with a growth rate of 2.3x.</p> <h2>2. Delivering Value Beyond Cost Savings</h2> <p>In 2022 and beyond, smart procurement will entail not just pursuing traditional cost-cutting objectives but also lifting the bar and demonstrating how it can generate real, concrete, genuine value.</p> <p>But questions may arise on how organizations are looking beyond cost savings and trying to deliver value through procurement. Generally, organizations prefer suppliers that can provide the opportunity to cut their costs while factors that actually create value &ndash; such as quality, compliance and time &ndash; are overlooked.</p> <p>Organizations have now realized that in order to achieve a competitive advantage in the market, they have to deliver what their customers expect of them. If you exceed your customer&#39;s expectations with the help of high-standard procurement processes, you are providing the value they are looking for.</p> <h2>3. Building a Trusted Supplier Base</h2> <p>COVID-19 taught organizations to build a trusted supplier base that they can rely on in unexpected situations. Suppliers are a crucial part of every supply chain and managing them is one of the top priorities of every business right now.</p> <p>People management and the additional value that human elements of the business provide to operations are at the heart of supplier management. Maintaining these relationships will guarantee that both parties work fast to fix issues, search for ways to enhance operations and assist each other in reaping the benefits of the connection.</p> <p>With a limited number of suppliers, it&rsquo;s imperative to try to build longer, stronger ties. This is a better deal than typical contract turnover. So, to get the most out of your supplier relationships, look for quality and reliability, value for money, and &ndash; most importantly &ndash; great service and clear communication from the start.</p> <h2>4. Change in C-Suite Perception About Procurement</h2> <p>According to a <a href="https://www.fronetics.com/procurement-isnt-strategic-enough/" target="_blank">procurement survey conducted in 2020</a>, 83% of executives said their procurement department isn&#39;t strategic. Prior to the pandemic, they didn&rsquo;t think procurement was critical to corporate leadership or that major input from the procurement department was required to make high-level strategic decisions.</p> <p>But now, the C-suite has realized the importance of procurement to their organization and is welcoming the input of their chief supply chain and procurement officers.</p> <p>The duty that lies on chief supply chain and procurement officers now is to recognize the board&#39;s priorities and deliver on them. To cope with the board&#39;s evolving goals, supply chain leaders must focus on increasing performance while controlling risks and pursuing new technology, products and services to build the business.</p> <h2>5. Procurement Sustainability</h2> <p>The year 2022 will be the year of procurement sustainability. Economic sustainability will be the focus for the coming year due to the world&#39;s economic problems caused by a global pandemic that forced almost all businesses to close for a time.</p> <p>More<a href="https://tcocertified.com/blog/what-are-the-positive-trends-in-sustainable-purchasing-right-now/" target="_blank"> nations are beginning to use their purchasing power</a> to force reforms toward a better market and environment by including environmental concerns in public procurement. As a result, public procurers are increasingly looking for products with ecolabels.</p> <p>On the business side, sustainability is no longer merely a hot topic; it is increasingly being explored independently or even incorporated into the company strategy.</p> <p>As consumers are now more aware of the green products and the deteriorating condition of the environment, they demand environmentally friendly products right from the start of the supply chain. Organizations that ignore the importance of sustainability in the supply chain will lag behind their competitors and fail to gain recognition from their consumers.</p> <h2>Conclusion</h2> <p>The world of procurement is evolving at a fast pace. The technological revolution has made procurement tools more useful, up-to-date and user-friendly, and provides a promising solution for unforeseen disruptions and risks. Procurement leaders around the world are learning from their past mistakes and evolving with the new trends to gain a competitive edge and stay on top of the market.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/kissflow-procurement-cloud" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Kissflow Procurement Cloud</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/environmental-and-social-governance-esg-0" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Environmental and social governance (ESG)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-relationship-management-srm" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Relationship Management (SRM)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Happening Now: 5 Important Procurement Trends - Future of Sourcing" addthis:url="https://futureofsourcing.com/happening-now-5-important-procurement-trends"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sun, 13 Mar 2022 17:00:00 +0000 Mohammed Kafil 2148 at https://futureofsourcing.com https://futureofsourcing.com/happening-now-5-important-procurement-trends#comments Turning the Corner on Digital Transformation with GBS https://futureofsourcing.com/turning-the-corner-on-digital-transformation-with-gbs <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Turning%20the%20Corner%20on%20Digital%20Transformation%20with%20GBS.png"><a href="https://futureofsourcing.com/sites/default/files/articles/Turning%20the%20Corner%20on%20Digital%20Transformation%20with%20GBS.png" title="Turning the Corner on Digital Transformation with GBS" class="colorbox" rel="gallery-node-2040-e8RQjS4sV_g"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Turning%20the%20Corner%20on%20Digital%20Transformation%20with%20GBS.png?itok=9tHVxnbg" width="624" height="325" alt="Turning the Corner on Digital Transformation with GBS" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Turning the Corner on Digital Transformation with GBS</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/covid-19-highlights-procurements-continued-need-to-evolve-and-become-more-agile-and-resilient">COVID-19 Highlights Procurement’s Continued Need to Evolve and Become More Agile and Resilient</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>The COVID-19 pandemic made an already challenging marketplace even more complicated, forcing businesses to seek out value in every corner of their operations&mdash;including in their extended networks. As a result, Global Business Service (GBS) organizations are increasingly investing in new capabilities, demonstrating to parent organizations their ability to improve business outcomes as a true strategic partner.</p> <p>To thrive in this uncertainty, GBS organizations should prioritize technology investments for several reasons: they boost collaboration, fuel innovation and help generate tangible value. Digital transformation is only growing in importance, and GBS organizations that are already ahead of the curve have provided a roadmap detailing all that digital technologies have to offer.</p> <p><span style="font-size: 1.385em; font-weight: bold;">Expanding Priorities</span></p> <p>The <a href="https://www2.deloitte.com/us/en/pages/operations/articles/shared-services-survey.html" target="_blank">2021 Deloitte Global Shared Services and Outsourcing Survey</a> revealed that traditional objectives such as improving efficiencies and reducing costs remain top of mind for GBS leaders. GBS is also taking on more than ever before as they outline for themselves newer, more strategic objectives. According to the survey, GBS priorities are evolving, with the top five being rounded out by business value, the digital agenda and capabilities development.</p> <p>Those incorporating this work into their daily operations are reaping the benefits not only for themselves but also their partners. Notably, the survey found that over 61% of GBS Organizations have defined acceleration of the digital agenda as one of their strategic priorities, underscoring the focus on digital investment and transformation, and 54% of these organizations have achieved their objectives.</p> <h2>Key Capabilities</h2> <p>There are many digital enablers already proving successful for GBS. Seventy-two percent of organizations have implemented robotic process automation (RPA)&mdash;the number one digital focus area for GBS&mdash;which is helping realize upwards of 40% in savings. Overall, more than half of GBS organizations have implemented RPA together with predictive reporting and process excellence.</p> <p>These enablers, however, extend far past RPA; a majority of organizations, for example, are prioritizing single-instance ERP and cloud solutions and cited them among their most important capabilities. Other enablers include varying AI platforms for self-service, virtual assistance, and more, as well as case management solutions like ServiceNow and predictive and customer analytics. As GBS looks to capitalize on digital investments in both the short- and long-term, 44% plan to prioritize analytics within their operations in the coming years&mdash;the number one expected capability investment.</p> <h2>Incorporating Talent</h2> <p>Any digital transformation journey is only as successful as the people involved, meaning GBS organizations looking to level up their operations must prioritize talent. According to the survey, GBS organizations are increasingly focusing on developing a culture of innovation and analytics to support a widespread digital mindset. Sixty-seven percent are building continuous improvement and innovation into talent programs, and a majority are leveraging contract and contingent workers to gain new expertise and skillsets as they expand capabilities, with others using gig workers as well.</p> <p>As the pandemic offers &ldquo;proof of concept&rdquo; for technology-fueled ways of working, GBS organizations are pivoting rapidly to continue innovating their talent models to meet the growing needs of their operations.</p> <h2>Breaking Down Siloes to Succeed with Digital&nbsp;</h2> <p>The survey indicated several key obstacles to achieving digital outcomes, such as siloed processes or unorganized approaches to AI. Another key issue is technical complexity, which has highlighted the importance of having a skilled and engaged workforce.</p> <p>Those who can navigate these challenges through open communication and collaboration organization-wide will be able to capitalize on the top three trends impacting GBS plans in the near-term&mdash;which all happen to be digitally focused: expanded work-from-home capabilities (87%), digital agenda acceleration (61%) and additional virtual practices (59%).</p> <h2>Moving Forward Post-Pandemic</h2> <p>The pandemic has fundamentally changed the way we do business. GBS organizations are leaning into digital transformation and already reaping the benefits. To succeed in the long-term and emerge as leaders in a post-pandemic market, GBS organizations must continue to use digital enablers to support their new, evolving strategic priorities.</p> <p>Still, there is no one-size-fits-all approach given the vast possibilities with digital. Organizations moving forward should continually review and evaluate their priorities and investments to ensure they are pursuing the best possible pathways for their business.&nbsp;</p> <p>For a more detailed review or discussion of the survey results, please visit Deloitte&rsquo;s <a href="https://www2.deloitte.com/us/en/pages/operations/articles/shared-services-survey.html" target="_blank">website</a> and contact the report authors.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/talent" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/covid-19" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">COVID-19</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/global-business-services-gbs" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Business Services (GBS)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/2021-deloitte-global-shared-services-and-outsourcing-survey" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">2021 Deloitte Global Shared Services and Outsourcing Survey</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital-transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Transformation</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Turning the Corner on Digital Transformation with GBS - Future of Sourcing" addthis:url="https://futureofsourcing.com/turning-the-corner-on-digital-transformation-with-gbs"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 17 Aug 2021 17:00:00 +0000 Brad Podraza 2040 at https://futureofsourcing.com https://futureofsourcing.com/turning-the-corner-on-digital-transformation-with-gbs#comments The Business Benefits of Process Automation https://futureofsourcing.com/the-business-benefits-of-process-automation <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/GettyImages-1145361639%20%281%29%20%281%29.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/GettyImages-1145361639%20%281%29%20%281%29.jpg" title="One of the key things around Intelligent Automation (IA) is to ensure it has a strong business foundation not just in planning, execution and validation but also in assessing and reporting business benefits. " class="colorbox" rel="gallery-node-1860-e8RQjS4sV_g"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/GettyImages-1145361639%20%281%29%20%281%29.jpg?itok=fBaSnr2h" width="1024" height="576" alt="One of the key things around Intelligent Automation (IA) is to ensure it has a strong business foundation not just in planning, execution and validation but also in assessing and reporting business benefits. " title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/guide-your-artificial-intelligence-solution-with-a-proof-of-concept">Guide Your Artificial Intelligence Solution with a Proof of Concept</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>One of the key things around Intelligent Automation (IA) is to ensure it has a strong business foundation not just in planning, execution and validation but also in assessing and reporting business benefits. While this may seem simple, it&rsquo;s often not done well in most organizations and leads to a skewed view of business benefits from automating business processes.</p> <h1>Why Calculate Benefits from Process Automation?</h1> <p>It&rsquo;s well understood that organizations looking to make substantial business impact through intelligent automation need to have the right criteria to review the pipeline to shortlist the best candidate processes. These criteria need to rate various functions based on the benefits they will bring to the organization after automation. This ensures that the limited resources to develop and run automation is directed toward opportunities that yield maximum business returns.</p> <p>Second, there should be an essential step of capturing the benefits <em>after</em> a process is automated. It helps improve the process assessment criteria through a feedback mechanism.</p> <p>Finally, presenting business benefits from process automation helps showcase to the larger organization the value already being delivered and helps drive the future pipeline.</p> <h1>Calculating Business Benefits from Process Automation</h1> <p>Once business value is determined from processes automation, how does one estimate this business value? Most organizations look at labor savings as that criteria. Some have it as the number of Full-Time Equivalents (FTEs), which is roughly translated as the number of human hours equivalent to a person&rsquo;s productive time at work.</p> <p>Many also factor in additional benefits like 24x7 operations with automation, increased speed of processing and zero/low errors, which is incorporated into the FTE numbers. Organizations further process FTE numbers with the cost of labor to find a dollar value. Hence, the list of processes being assessed is rated based on their &ldquo;FTE Value&rdquo; or equivalent &ldquo;dollar value.&rdquo;</p> <p>This single dimension of estimating the value of the benefit from process automation in terms of FTE cannot be more flawed. This is similar to the models used in the outsourcing industry. Those make sense in the outsourcing world as the work moved from one set of humans to another with a different cost and ownership structure. The way the work is done does not change.</p> <p>However, when work gets automated, it is moving from human workers to digital workers. Digital workers are not just doing the same job. They are also able do the same work much faster and with more accuracy and efficiency. The benefit of this is way beyond their labor-saving equivalent.</p> <p>The benefit of these &ldquo;terms of operations&rdquo; when processes are automated have a much deeper impact on a business once we understand the impact of speed, accuracy and efficiency on the process being automated. The work is not just being done by digital workers, it&rsquo;s also being done in a superior manner, and several other benefits are achieved depending on the nature of the process. These benefits bring much higher value to businesses than just those from labor savings.</p> <p><strong>To illustrate this, consider the following simplified example:</strong></p> <p><strong>Before</strong>: In a large legal firm that mostly worked with corporate organizations, there was a team of 20 individuals working across three locations to prepare data for monthly billing. This involved processing customer engagement data, milestone completion, hours spent split across projects and locations, and different client corporate entities across different countries. Additionally, this involved going through other clauses in each contract every month to arrive at the final amount to be billed for each legal entity of the customer across multiple project invoices.</p> <p>This work could only start at the end of each preceding month. With the scale of operations, it took time to go through the set of structured and semi-structured data. It normally takes this team around 10 to 12 days to process all this data and send the information to the billing team. So, while the billing could be contractually done on the first of every month for the preceding month, invoices would typically be dispatched by 12th of the month after all the data was reviewed, scrubbed and validated for getting the correct billable amount.</p> <p><strong>After</strong>: After automating the process, 90% of billing data across all customers was processed in three days. Some exceptions needed deeper human intervention and human validation, but now only required a team of four members instead of 20 members.</p> <p><strong>Benefits</strong>: With a traditional way of looking at this process automation, which helped re-deploy 16 members of the staff for other activities, the benefit from automating the process was 16 FTE. Assuming that work was being done from various offshore locations, this savings could be translated to around $300,000 per year without getting into the intricacies of chargebacks, etc., for the sake of this illustration. However, there were several other benefits the business achieved, and these were way beyond the labor savings of $300,000.</p> <p>For starters, by reducing the time to process billing information from 12 days to three days for 95% of invoices, this organization was able to raise invoices nine days earlier. This roughly translated to $200,000 per month or $2.4 million per year with a very conservative estimate of cost of capital. Additionally, this benefit amount increased as business grew. The digital workers didn&rsquo;t take additional time to process more billing data as linearly as their human counterparts.</p> <p>This $2.4 million benefit back to the business is three times the relatively smaller cost of FTE savings earlier calculated at around $300,000. This dramatically improved their working capital position. Further, this improved their ability to forecast on several financial parameters which can further be quantified.</p> <p>Beyond this, this automation also helped improve the work-life balance of their invoice preparation staff for which a dollar value is not easy to be defined. Staff was not required to work longer hours and this resulted in <a href="http://Staff was not required to work longer hours and this resulted in improved productivity and better employee engagement" target="_blank">improved productivity and </a><a href="https://www.hourly.io/post/how-to-increase-employee-productivity" target="_blank">better employee engagement</a>. In turn, this helped them attract and retain better talent.</p> <p>&nbsp;</p> <h1>Challenges in Calculating Business Benefits from Process Automation</h1> <p>Like with any enterprise transformation program, driving automation has its share of challenges when it comes to calculating business benefits.</p> <ul> <li>The wide range and type of processes makes it difficult to have a way to calculate benefits that are standard, and at the same time covering all aspects.</li> <li>The teams involved often don&rsquo;t know these processes intimately or do not have the full business view of the process to be able to find the full impact of automating them</li> <li>Each business unit has a different way to calibrate existing processes therefore inputs vary and make it difficult to have a model that covers all of these</li> <li>Lack of business and commercial expertise in estimating these business benefits</li> </ul> <p>The diagram below summarizes the pyramid of business benefits covering tangible and intangible benefits from automating business processes.</p> <p><img alt="The pyramid of business benefits covering tangible and intangible benefits from automating business processes. " src="https://futureofsourcing.com/sites/default/files/Automation-Benefits-Triangle.png" style="width: 945px; height: 434px;" /></p> <h1>To Summarize</h1> <p>In summary, business benefits from automating processes go beyond FTEs and labor savings. The above diagram attempts to cover all these various benefits holistically, but here are the main takeaways:</p> <ul> <li>The FTE savings on the top of the pyramid are most visible but is the smallest component</li> <li>Often a larger chunk of savings is returned with positive impact on the process being executed at a much higher speed, with no errors and a standardized approach</li> <li>Finally, the greatest value (bottom of the pyramid) is the most understated and underestimated. These are related, extremely valuable yet intangible elements like customer experience, employee experience, staff work-life balance, brand value, etc.</li> </ul> <p><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">(</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">The views expressed here are&nbsp;</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">author&rsquo;s personal views&nbsp;</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">and&nbsp;</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">not&nbsp;</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">attribut</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">able</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">&nbsp;</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">to&nbsp;</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">the any</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">&nbsp;</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">employer</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">.</span></span><span class="TextRun SCXW260575400 BCX0" data-contrast="auto" lang="EN-GB" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-style: italic; font-size: 11pt; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif; font-kerning: none; line-height: 19.425px; font-variant-ligatures: none !important;" xml:lang="EN-GB"><span class="NormalTextRun SCXW260575400 BCX0" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; background-color: inherit;">)</span></span><span class="EOP SCXW260575400 BCX0" data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}" style="user-select: text; -webkit-user-drag: none; -webkit-tap-highlight-color: transparent; font-size: 11pt; line-height: 19.425px; font-family: Calibri, Calibri_EmbeddedFont, Calibri_MSFontService, sans-serif;">&nbsp;</span></p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/intelligent-automation-ia" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Intelligent Automation (IA)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/full-time-equivalents-ftes" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Full-Time Equivalents (FTEs)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/outsourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Outsourcing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The Business Benefits of Process Automation - Future of Sourcing" addthis:url="https://futureofsourcing.com/the-business-benefits-of-process-automation"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 21 Sep 2020 21:26:48 +0000 Ashutosh Agarwal 1860 at https://futureofsourcing.com https://futureofsourcing.com/the-business-benefits-of-process-automation#comments Rebuilding a Broken Chain: How Agility Can Save The World https://futureofsourcing.com/rebuilding-a-broken-chain-how-agility-can-save-the-world <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2835%29.png"><a href="https://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2835%29.png" title="Rebuilding a Broken Chain: How Agility Can Save The World" class="colorbox" rel="gallery-node-1755-e8RQjS4sV_g"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2835%29.png?itok=TiR031et" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/making-indirect-spend-take-the-shortest-way">Making Indirect Spend Take the &quot;Shortest Way&quot;</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>There were two stories in recent news that grabbed my attention.&nbsp; All across the country, food banks are overwhelmed with demand.&nbsp; <a href="https://www.commondreams.org/news/2020/04/10/unforgettable-footage-endless-line-cars-food-banks-stark-illustration-coronavirus" target="_blank">Families in desperate need waited for hours</a> for a week&rsquo;s worth of supplies over Easter weekend, with lines of cars stretching for miles. The demand outstretched many facilities&rsquo; ability to fulfill, with some leaving empty-handed, or with less than they need.</p> <p>Even for those with the means to pay, grocery store shelves are spotty and bare in places.&nbsp; Stores run out of eggs, meat, vegetables, and milk in addition to the now-usual scarcity of toilet paper and Clorox wipes. The &ldquo;panic&rdquo; buying ended a few weeks ago, yet shortages persist.&nbsp; We&rsquo;ve all seen it as we don our masks and queue up 6 feet apart outside our local markets. At my house, we joke that grocery shopping has become an episode of &ldquo;Chopped&rdquo;: What can you make with a can of Spam, a wilted apple, and a box of Cheerios? I haven&rsquo;t been able to get vanilla, flour, or dishwasher detergent in weeks.</p> <p>The shift in demand isn&rsquo;t obvious; people have always gone grocery shopping, so why are the shelves bare? Is it possible that my neighbors have eaten every meal at a restaurant until today? We are buying more groceries, sure, but not <em>that</em> much more!</p> <p>The reality is that the current grocery supply chain is incredibly lean and efficient. Striving to decrease food waste and reduce the cost of goods, the process of ordering is optimized to a remarkable extent.&nbsp; Complex ordering systems estimate demand and precisely fill shelves according to past trends. Most grocery stores have limited &ldquo;backroom stock&rdquo; to only the most vital products, having shifted to a direct stock method. Items coming in on a truck go straight to the shelves, maximizing floor space and decreasing expenses.&nbsp;</p> <p>On a <a href="https://seekingalpha.com/article/4044095-whole-foods-market-wfm-q1-2017-results-earnings-call-transcript?part=single" target="_blank">quarterly conference call</a> in February 2017, Whole Foods EVP of operations Ken Meyer explained that the company&rsquo;s order-to-shelf initiative cleared backrooms of all items except &ldquo;never-outs&rdquo; or items continually re-stocked. He stated, &ldquo;It&rsquo;s creating a powerful, efficient process, from the way the goods are received in the back door to bring them right out to the shelf.&rdquo;&nbsp;<a href="http://www.supermarketnews.com/retail-financial/supply-chain-changes-drive-results-target-whole-foods" target="_blank">Target similarly implemented their &ldquo;Goods to Person&rdquo; initiative</a> around the same time, which resulted in a 9% reduction in backroom storage - and the ability to expand the store&rsquo;s shoppable footprint, especially in urban areas where space is at a premium.&nbsp; In addition, this precise method of distribution reduces the total time it takes to bring stock to consumers. This <a href="https://www.wsj.com/articles/retailers-rethink-inventory-strategies-1467062280" target="_blank">method has been widely adopted across the industry</a> over the last few years, resulting in lower prices, improved efficiency, and larger consumer-facing footprints.</p> <p>Behind the scenes, the entire system depends on data-assisted ordering, which is based on historical demand. ERP systems determine the ideal inventory level of a particular item based on prior sales, adjusting for trends and seasonality. Purchase-of-sale systems deplete that inventory, and orders are created automatically to backfill to the precise level of stock needed, SKU by SKU. When the demand changes dramatically, the system orders enough to refill to the prior stock level, but adjusting the &ldquo;ideal&rdquo; stock level doesn&rsquo;t happen immediately.</p> <p>So, when you walk into the store, especially national chains and urban grocers, there are holes and bare shelves.&nbsp;</p> <p>Once the initial &ldquo;panic buy&rdquo; of toilet paper stopped, why haven&rsquo;t the stores simply restocked them and ordered more? It&rsquo;s been over a month since people walked out of Target with 400 rolls of paper towels, yet some items remain in short supply. That much of a sustained demand increase doesn&rsquo;t make sense. Automated ordering isn&rsquo;t to blame for that. It&rsquo;s baffling until you consider that bulk orders of these goods used to be made by schools, hotels, restaurants, theme parks and businesses&mdash;and those packages and distribution channels are very, very different from the route a 12-pack of Charmin takes to your cart.</p> <h1>Dumping Milk and Burying Produce</h1> <p>On the supply side of the economy, there&rsquo;s an even stranger picture. Without restaurant and commercial purchasing, <a href="https://www.nytimes.com/2020/04/11/business/coronavirus-destroying-food.html" target="_blank">farmers are dumping and composting ton after ton of food</a>.&nbsp; From produce to milk to eggs, perishable food is being deliberately destroyed because the producers don&rsquo;t have a market for it.&nbsp;</p> <p>To people working outside of the supply chain, none of this makes sense.&nbsp; Why don&rsquo;t those farmers just sell their produce to the food banks?&nbsp; Why don&rsquo;t they simply sell to the grocery stores?&nbsp;</p> <p>These producers had a supply chain which was directed toward the restaurant, government, and commercial industries.&nbsp; According to the USDA, the National School and Lunch and Breakfast Programs are the largest consumer of liquid milk in the US, distributing over 1.8 billion pints to children in the last year.&nbsp; While smaller versions of the lunch program are operating, the volume has plummeted, and suppliers who specialized in the program are dumping their milk. Produce farms are facing similar issues; they package in 50-pound bags and sell to restaurants like Applebees, Chilis, and McDonald&#39;s&mdash;restaurants that are experiencing an unprecedented drop in demand. Restaurants accounted for 25% of pork and bacon purchases nationwide, and there have been processing plant shutdowns, resulting in overcrowded pig farms.</p> <p>It&rsquo;s a broken supply chain, and food/grocery isn&rsquo;t the only one.</p> <p>Re-tooling packaging and distribution is a massive task. The machines which handle packaging cost millions of dollars and take months to implement. Theoretically, producers could switch to manually repackaging, but worker shortages and the need for intense safety measures present a real barrier to that kind of agility.</p> <p>Many suppliers and distributors are questioning the wisdom of making dramatic changes to their packaging and distribution systems&mdash;if the pandemic &ldquo;blows over&rdquo; in a few weeks, and everything goes &ldquo;back to normal,&rdquo; those heroic measures would be a further drain on an already stressed or decimated bottom line.</p> <p>If, however, demand doesn&rsquo;t go back to normal, if restaurants don&rsquo;t reopen, or reopen in a limited way, the supply chain will need to adjust permanently. If this crisis continues into the fall and into 2021, or if it starts and stops in jerks and waves, we will continue to see rolling shortages and oversupply. This uncertainty cries out for agile, elastic solutions.</p> <h1>Creating an Agile, Resilient Chain</h1> <p>COVID-19 has exposed the vulnerabilities of our highly specialized and extremely lean supply chain. The good news is that we don&rsquo;t (currently) have a supply problem. Farmers can grow the amount of food we need to eat and manufacturers can make the products we use every day. We just need to fix the connection between the two and make that connection elastic enough to handle ongoing fluctuations. In the long term, that level of agility will give us a stronger, more stable system that can accommodate all sorts of disruptions, from natural disasters to economic shifts.</p> <p>In the short term, agile actions can be taken to fill gaps. On a national level, the administration is providing funds to struggling suppliers, and the national guard has been mobilized to collect surplus food from farmers and distribute it to food banks. Last week, the <a href="https://www.ams.usda.gov/content/usda-purchase-3-billion-agricultural-commodities-issue-solicitations-interested-participants" target="_blank">U.S. Agriculture Department said it would spend $3 billion</a> to buy fresh produce, dairy and meat that will be sent to food banks. Short-term, this sort of effort is absolutely necessary to ensure that producers stay in business and that people get the food they need.</p> <p>On a smaller scale, there is exceptional innovation happening in the grocery and food industry.&nbsp; Companies across the country have already made incredible shifts: just as alcohol distributors have begun making sanitizer and fashion companies are now producing masks, farmers, distributors, and retailers are undergoing a remarkable transformation.&nbsp;</p> <p>My local grocery store has been purchasing commercially packaged items and repackaging them in-store for consumer consumption. Innovative restaurants have begun to hold &ldquo;Farmers Markets&rdquo; and offer pickup service for their excess meats and produce. These creative solutions are not only a lifeline for struggling businesses but can be a blueprint to a newer, more resilient economy.&nbsp;</p> <p>Longer-term, we need to address the vulnerabilities exposed by the current crisis. The odds are that we will be facing instability in the supply chain for quite some time. Even if the pandemic resolves quickly, and people can get back out, many companies will not recover. Primary and secondary suppliers may not come back online, and we can, unfortunately, expect waves of bankruptcies in the coming months, no matter what happens with the medical crisis. Simply waiting for things to go &ldquo;back to normal&rdquo; is a recipe for disaster.</p> <p>The organizations that will thrive in the future are those who embrace change and agility. They will target their single threads of demand and supply, and work to diversify. Manufacturing and distribution will learn how to make rapid shifts in the most Darwinian environment possible&mdash;change or die.</p> <p>It&rsquo;s not time to throw out the technology that made our supply chains so lean, either. Data models that rely entirely on historical data, without the ability to adjust for trends, need to be made more elastic. Deep learning and feedback loops can detect small changes in demand and shift ordering to keep backroom stock down while adjusting for changes in demand.&nbsp;</p> <p>Big data can provide incredible connections between suppliers and customers, and can enable organizations to make the kinds of major shifts that are required to respond to a crisis. Robotic process automation (RPA) and artificial intelligence (AI) are capable of doing research on your supply chain that an army of humans couldn&rsquo;t accomplish. <a href="https://www.fairmarkit.com/" target="_blank">Fairmarkit</a> has seen an unprecedented surge in usage of our vendor recommendation engine, which identifies suppliers automatically for goods and service purchases; other agile software providers can help to bridge this gap.</p> <p>We can rebuild the supply chain together, and we can make it elastic, resilient, and equitable together. Bring on the technology and embrace the innovation!</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/global-supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Supply Chain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/covid-19" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">COVID-19</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/agile-methodology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Agile Methodology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Rebuilding a Broken Chain: How Agility Can Save The World - Future of Sourcing" addthis:url="https://futureofsourcing.com/rebuilding-a-broken-chain-how-agility-can-save-the-world"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 07 May 2020 22:54:30 +0000 Erin McFarlane 1755 at https://futureofsourcing.com https://futureofsourcing.com/rebuilding-a-broken-chain-how-agility-can-save-the-world#comments 8 Use Cases and Applications that Prove RPA is Not Dead https://futureofsourcing.com/8-use-cases-and-applications-that-prove-rpa-is-not-dead <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/RPA-is-not-dead.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/RPA-is-not-dead.jpg" title="Use Cases and Applications for robotic process automation" class="colorbox" rel="gallery-node-1702-e8RQjS4sV_g"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/RPA-is-not-dead.jpg?itok=te1hdTWg" width="624" height="325" alt="Use Cases and Applications for robotic process automation" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>A <a href="https://www.horsesforsources.com/rpa-dead-integrated-automation-platforms_041519" target="_blank">recent article in Horses for Sources</a> generated a lot of turmoil by stating that &ldquo;RPA is dead.&rdquo; So, we thought it would be interesting and helpful to look at and discuss the <strong>current reality of robotic process automation.</strong></p> <p>A recent <a href="https://www2.deloitte.com/us/en/pages/operations/articles/global-robotic-process-automation-report.html" target="_blank">Deloitte study</a> based on responses from over 400 executives across the industry spectrum (global business services, shared services, finance, procurement, HR, marketing and operations) singled out three top RPA-related strategic priorities:</p> <ul> <li>Focus on continuous improvement (35%)</li> <li>Increase level of automation (24%)</li> <li>Develop analytics capabilities (17%)</li> </ul> <p>The top priority in particular seems to be the furthest one from the opinion that RPA is dead. Let us see then see how we can conceive the <strong>future of RPA</strong>, beyond a simplistic understanding of the message in the HfS article.</p> <h1>Change Management Goes Hand in Hand with RPA</h1> <p>Providing efficient training opportunities for the company&rsquo;s staff is a vital component of successful RPA deployment, and good change management is one of its preconditions. And by &ldquo;good change management&rdquo; we mean one that is energetic, quantifiable and iterative.</p> <p>RPA providers&rsquo; approaches to change management that share these features are the most likely to have a significant positive effect. As an argument, half of the highest geared companies, and 36% of the lowest performing ones, consider that their culture of origin is a stumbling block in the way of a successful automation journey, according to HfS.</p> <p>Let&rsquo;s zoom in a bit on the role of change management, more specifically, of human-centric change management. And no, this employee-centrism is by no means contradictory to automation, despite the spread of the &ldquo;robots will steal our jobs&rdquo; narrative, which is often used as a typical robotic process automation objection.</p> <p>The advance of RPA will undoubtedly have a deep impact on the workforce; however, this impact is better spelled out in terms of <em>helping not of hindering</em> the current work roles. Managing employees&rsquo; expectations with respect to the shifting scope of work should downplay the negative effect of the routine change on company culture.</p> <p>In fact, providing the necessary amount of training for all employees (in a top-down approach) involved in an RPA project is among the best RPA implementation practices. Training is necessary to ensure the positive connotation of the phrase &ldquo;disruptive technology&rdquo; that is often used to describe automation.</p> <p>It must include information about the objectives that RPA is meant to attain, how software robots can assist humans in performing their daily activities, and why their help shapes the way toward higher value work.</p> <h1>The Current Reality of RPA Implementation: Real-World Use Cases</h1> <h2>Data management</h2> <p>This is illustrative for a repetitive, high-frequency, high-volume process that no business can do without, irrespective of size or industry sector. Data from multiple sources, such as operational performance datasheet or personal records and files, must be selected for relevance, gathered together and analyzed coherently. On top of that, the analyses results must be promptly forwarded to the executives.</p> <p>Everything requires painstaking attention to details, which makes the process highly time-consuming, resource-exhausting, stressful and boring. But your team can be saved by software robots, that can do everything in a fraction of a time and error-free.</p> <h2>Procure-to-pay</h2> <p>This is a part of the procurement process that is based on corroborated actions of two departments: purchasing and accounts payable. Front-end software robots are experts at consistently integrating data from multiple sources, and thus support your company&rsquo;s well-aligned transactions. A good practical illustration of bots&rsquo; utility is the automation of payment portal receivables for FMCG food companies.</p> <h2>Promoting better investment options</h2> <p>Bots can accurately track investment values without being hindered by sudden changes. The inherent risk of investing can be minimized by thorough, accurate assessment of investors&rsquo; portfolios.</p> <p>Software robots can also offer information updated in real-time about fluctuations on the stock market, and thus help you make better decisions. In other words, they can be your financial advisors for a much lower cost than that of human advisors.</p> <h2>Financial management and audit trail</h2> <p>The subprocesses involved in financial management have features specific to most automation-friendly processes: rule-driven, error prone and highly intolerant to error. By eliminating keystroke errors and routinizing decision logic, software robots can bring your company to the state of audit readiness in a quasi-risk-free manner.</p> <h2>Business and process analytics</h2> <p>Benchmarks are necessary for the improvement of business processes and these benchmarks are often the consequence of analytics. Bots can easily track and record all the actions undertaken, from their position of <em>experts</em> on quantifying and appraising.</p> <p>Consequently, your employees gain direct access to information-loaded details for free, which significantly reduces their workload and allows them to focus on the interactions with the clients and respond better to their needs.</p> <h2>Competitor price tracking</h2> <p>In order to set an appropriate price for your company&rsquo;s products, you need to be informed with respect to the prices set by other market players. Therefore, accurate price monitoring is a very valuable asset.</p> <p>Software robots can do this around the clock, with a minimal risk of error. They can also track prices at multiple levels -- individual, category and brand level -- offering you an insightful and elaborate comparative price analysis.</p> <h2>Revenue cycle functions</h2> <p>This RPA application area applies well to the healthcare industry, a sector having many simple, rules-based and high-volume manual processes that simply <em>call for</em> automation.</p> <p>Administrative processes like new patient appointment requests, patient pre-arrival and arrival, claim denials or billing often require code changes, which can slow down the processing time. Bots enable a smooth adjustment to these changes and thus warrant coherent data handling.</p> <h2>Order and Invoicing</h2> <p>Software robots are capable to deal with multiple data formats, such as Word, Excel and email. When this capacity is coupled with OCR technology, it allows them to automatically import orders and invoices into the company&rsquo;s ERP. This streamlines product delivery to customers; hence they will be more satisfied to work with your company.</p> <h1>A New Reality</h1> <p>The recent UiPath Forward event in Las Vegas hosted numerous discussions about future trends in RPA. One of the central topics was a potential new economic crisis threatening economical organisations worldwide, and how automation is likely to change the &ldquo;classical&rdquo; approach of laying off employees.</p> <p>Scaling up bots to better handle recession appears to be an alternative, viable model that can successfully replace employee dismissal. A related trend is that of improved robot standardization, which results in an enlarged range of use cases.</p> <p>Additionally, as young people entering the workforce become increasingly familiar with the current reality of RPA and the benefits of automation, and as they become more efficient by working side by side with software robots, businesses will increase adoption and move on towards process digitalization.</p> <p>All in all, we believe that the future of RPA is as far as possible from a dead end. On the contrary, new developments, particularly the turn towards intelligent automation, are fully consistent with companies&rsquo; top priority of continuous improvement.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/data-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Data Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/procure-to-pay-p2p" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procure to Pay (P2P)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="8 Use Cases and Applications that Prove RPA is Not Dead - Future of Sourcing" addthis:url="https://futureofsourcing.com/8-use-cases-and-applications-that-prove-rpa-is-not-dead"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 13 Feb 2020 22:39:12 +0000 Daniel Pullen 1702 at https://futureofsourcing.com https://futureofsourcing.com/8-use-cases-and-applications-that-prove-rpa-is-not-dead#comments Interview with a Robotics Expert: Nick Andrews https://futureofsourcing.com/interview-with-a-robotics-expert-nick-andrews <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Nick_Andrews_Interivew%20with%20a%20Robotics%20Expert.png"><a href="https://futureofsourcing.com/sites/default/files/articles/Nick_Andrews_Interivew%20with%20a%20Robotics%20Expert.png" title="Interview with a Robotics Expert: Nick Andrews" class="colorbox" rel="gallery-node-1501-e8RQjS4sV_g"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Nick_Andrews_Interivew%20with%20a%20Robotics%20Expert.png?itok=Zg6Io7ou" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p>The implementation of innovative tools like Robotic Process Automation (RPA) and Artificial Intelligence (AI) can seem like a daunting, overwhelming and expensive task. Future of Sourcing is pleased to present this interview with Nick Andrews of Virutal Operations to discuss the rumor that RPA is dead, tools/technologies that are providing the most value to practitioners, what RPA tools they can implement today and much more.</p> <p>Nick Andrews is the Founder and managing director of&nbsp;<a href="https://virtual-operations.com/" target="_blank">Virtual Operations</a>.  Formerly Partner at Accenture and EY and the founding partner of ALSBridge, Nick is recognized within the Automation industry as a thought leader and as such is a frequent author and speaker with over 8 years&rsquo; experience in Process Automation and associated services.</p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/sig-university-launches-intelligent-process-automation-certification-program">SIG University Launches Intelligent Process Automation Certification Program</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <h2>Why do you think we are increasingly reading statements like &ldquo;RPA is dead&rdquo;?&nbsp;</h2> <div>In general, we have seen far less success in the industry than initially expected, especially with regard to achieving <a href="https://futureofsourcing.com/intelligent-automation-forget-scale-think-impact" target="_blank">scale and desired levels of ROI</a>. For example, Deloitte has reported that less than 5% of organisations have effectively scaled their RPA operations. Delivery costs often exceed benefits. &nbsp;As a consequence, we see focus shifting to alternative technologies, in the mistaken belief that this will unlock true automation potential.&nbsp;&nbsp;</div> <div>&nbsp;</div> <h2>What do you think has led to this situation?&nbsp;</h2> <div>An explanation for what we are observing is that most companies just don&rsquo;t have the scale potential for simple approaches to work; those that do usually don&rsquo;t have the correct approach to unlock it.&nbsp; &nbsp;</div> <div>&nbsp;</div> <div>The &ldquo;success&rdquo; stories that we hear about are often the result of a misrepresentation of statistics &ndash; large organisations saving thousands of FTEs, when in fact this represents less than 1% of the workforce.&nbsp;</div> <div>&nbsp;</div> <div>Their approach is often flawed not only by restricting benefit drivers to pure productivity/headcount reduction but also by placing an excessive focus on cost, rather than benefits at all. This drives behaviours such as offshoring discovery, implementation and support, which in turn deliver low-value automations.&nbsp;</div> <div>&nbsp;</div> <h2>Do you think we&rsquo;ve really reached the limits of RPA?&nbsp;</h2> <div>No &ndash; &nbsp;in almost all cases, <a href="https://futureofsourcing.com/interview-with-a-robotics-expert-clare-horn" target="_blank">RPA has not yet been fully exploited</a>. A user may feel that RPA has reached its limit within their organisation as a result of seeing the type of unsatisfactory results mentioned previously, whereas they have not applied an approach that would yield far higher benefits whilst still only focussing on RPA alone.&nbsp;</div> <div>&nbsp;</div> <div>There is a place for augmenting tools, but this should be dictated by the approach; in a successful automation program, we would expect these to play a part of a more strategic automation deployment, focusing on digitisation of the end-to-end journey. &nbsp;</div> <div>&nbsp;</div> <div>Ultimately, tool selection should always be based on fulfilling a purpose rather than on appeal. &nbsp;</div> <div> &nbsp;</div> <h2>So what would you say to a client who told you &ldquo;RPA didn&rsquo;t work for me&rdquo; or &nbsp;&ldquo;I&rsquo;ve already taken RPA as far as I can&rdquo;?&nbsp;</h2> <div>We should consider what is driving these statements: is ROI perceived as too low? In this case, we should shift the focus onto potential benefits &ndash; if cost is the limiting factor then the wrong opportunity has been selected. It is worth bearing in mind that even if we were to stick to a &ldquo;typical&rdquo; tactical, FTE-based business case, to break even in less than one year we only need to find and automate one to three FTEs. Whether this is worthwhile at all is questionable, but a significant number of projects at this level might prove the technology works, provide experience and confidence, and give momentum for more complex initiatives. Focussing on benefits means cost becomes irrelevant and ROI becomes the driving factor.&nbsp;</div> <div>&nbsp;</div> <div>If the client has a more transformational result in mind, then they need to understand that if RPA isn&rsquo;t changing the landscape, then it&rsquo;s highly unlikely that applying another technology will lead to greater benefits. Automation should always be considered as a tool in a broader business optimisation initiative, which should be guided by a combination of internal process and strategic corporate goals, and highly experienced automation specialists; both sets of skills and experience are vital to success. These are known as &ldquo;joint agility teams.&rdquo;&nbsp;</div> <div>&nbsp;</div> <div>There are additional key enablers that should not be overlooked &ndash; the absence of any one of these can be make or break an automation program. We would always advise a client to ensure these bases are covered to ensure success, before considering whether they have truly extracted all the value they can from RPA. Firstly, C-level sponsorship is a necessity in order to overcome internal resistance, which will always manifest even if the programmes become self-funding. &nbsp;</div> <div>&nbsp;</div> <div>Business case progression is also critical; automation programs should start with a series of short projects, then increasingly initiate more complex, transformation and higher reward projects (&ldquo;start small, think big, move fast&rdquo;). To maintain momentum, it is essential that each project has a compelling business case and that the benefits are tracked and widely known, especially at the C-level.&nbsp;</div> <div>&nbsp;</div> <h2>Do you think an RPA-focused approach is still the best place for a beginner to start?</h2> <div>Yes &ndash; but we would re-iterate that this needs to be part of the bigger picture, whether as part of Process Excellence, as a Digital Enterprise enabler, or as a strategic weapon either to attack business problems (such as optimising supply chain, or regulatory compliance), or meet business objectives (improving customer experience is a prime example).&nbsp;&nbsp;</div> <div>&nbsp;</div> <div>RPA should pave the way to utilising additional tools and technology. It is likely that a user will need to augment their RPA tools with emerging technologies at some point as they move through the stages of automation maturity, from tactical horizontal opportunities contained within a single function, through a tactical vertical scope involving external interfaces &ndash; including customer-facing &nbsp;&ndash; and eventually on to strategic horizontal and ultimately, strategic vertical transformation. &nbsp;&nbsp;</div> <div>&nbsp;</div> <h2>Which tools/technologies do you think are currently providing the most value to clients? How do they fit with RPA?&nbsp;</h2> <div>It is important to remember that RPA is still the core Industry Automation tool and will continue to be for a few more years. The leading RPA tool providers have started to build in supporting functionality enabling data digitisation and E2E processing with RPA at its centre, including Machine Learning, Simple AI, Natural Language Processing, Robotic Desktop Automation and others, and this will continue.&nbsp;</div> <div>&nbsp;</div> <div>We would always recommend adopting a &ldquo;platforms not products&rdquo; mindset. Avoid tool selection as the first step and consider how the tool requirements will be determined by process types, operational structure, objectives, budget and systems to be accessed. Encourage internal buyers to define business drivers and alignment to other digital initiatives and use external advisors to down select and develop RFP. Other considerations to bear in mind are Cloud vs On-Premise hosting options and increasing flexibility with regard to licencing options. &nbsp;</div> <div>&nbsp;</div> <h2> So to confirm, we would advise clients to meet their immediate needs with the right tools, then optimise their approach, and bring in appropriate tools as required? &nbsp;</h2> <div>Yes, and it is important to understand that if initial business objectives, budget and process characteristics dictate, we may need to utilise a range of tools from the outset.&nbsp;&nbsp;</div> <div>&nbsp;</div> <h2> What are the most important factors to consider for a client selecting a partner who can help them with their post-RPA journey?&nbsp;</h2> <div> In order for users to extract maximum value from the application of RPA (and supporting) tools, they should seek to work with an experienced partner able to de-risk the approach I have outlined, especially during the early stages of their automation journey. They should be able to demonstrate an approach that ensures the right business case progression, pipeline building and scaling where appropriate, and selection of the appropriate tool to deliver the required outcomes. Ideally, the partner will be able to set the organisation on a course to full enablement and sustainability by embedding this approach as best practice.&nbsp;&nbsp;</div> <div>&nbsp;</div> <div>Services provided should also align to the automation lifecycle, covering Strategy, Implementation, COE Build and Production Support. &nbsp;</div> <div>&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/automation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Automation</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/digital-enterprise" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Enterprise</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/implementation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Implementation</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/machine-learning" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Machine Learning</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Interview with a Robotics Expert: Nick Andrews - Future of Sourcing" addthis:url="https://futureofsourcing.com/interview-with-a-robotics-expert-nick-andrews"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sun, 29 Dec 2019 17:07:11 +0000 Nick Andrews 1501 at https://futureofsourcing.com https://futureofsourcing.com/interview-with-a-robotics-expert-nick-andrews#comments Outsource Your Coding...to RPA https://futureofsourcing.com/outsource-your-coding-to-rpa <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/RPA_Coding.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/RPA_Coding.jpg" title="Outsource Your Coding...to RPA" class="colorbox" rel="gallery-node-1638-e8RQjS4sV_g"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/RPA_Coding.jpg?itok=q2NVwNns" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Among those using automation in business, it&rsquo;s common knowledge that <a href="https://futureofsourcing.com/robotic-process-automation-rpa-drives-value-and-saves-money-but-it-is-not-a-magic-wand" target="_blank">Robotic Process Automation (RPA)</a> can be used to connect workflow systems without the need for complex scripting and Application Programming Interfaces (APIs.) Put simply, automation software joins different parts of your business infrastructure in an often-simple way.</p> <p>But while there&rsquo;s been a lot written about RPA&rsquo;s ability to link processes and automate services, much less has been dedicated to the benefits of RPA from a system engineering point of view. In fact, companies offering RPA often advocate a &ldquo;low code,&rdquo; &ldquo;no code&rdquo; or even &ldquo;drag and drop&rdquo; approach to bypass what they feel may be tedious and time-consuming programming focused approaches -- and in many cases this is the right way to go.&nbsp;</p> <p>However, RPA can execute code: actual code -- and it&rsquo;s also worth exploring what RPA can do in terms of outsourcing systems engineering tasks at a deeper level.&nbsp;</p> <div> <h3>Code Execution and Integration</h3> </div> <p><a href="https://futureofsourcing.com/artificial-intelligence-helps-business-services-re-imagine-boundaries" target="_blank">RPA is only constrained by the imagination of the solution design</a>. Software robots can be ultra-connected to both legacy and modern systems in the same way that leading enterprise grade systems do today. RPA can execute SQL commands, it can call web services, run VB scripts and even run a python script.</p> <p>Where we hit our limits with regard to the drag and drop RPA functionality, we can begin to expand beyond this by integrating code and&nbsp;allowing software architectures to shortcut (or at least circumvent) the need for extensive &ldquo;connective tissue&rdquo; technologies.</p> <p>Picture this: you&rsquo;ve got a client with two very old mainframe applications alongside two very modern Java based systems. They want to transfer data from an overnight batch from the older systems into the modern applications. RPA would be an excellent way to do this because it could process large volumes of data, transforming XML, for example, into an SQL loadable state performing the load process. In the old days, we might have had a Unix script that did this for us, but today, RPA would do a much better job because it would control the entire process.</p> <p>Scheduling-wise, RPA can be triggered in a multitude of different ways and following a successful operation it can be programmed to deliver a full audit over email, SMS or whichever way the client desires. Previously, businesses have used PERL scripts to do this, but RPA is better and more efficient.</p> <p>The real benefits of RPA are that it can handle a huge load, run across many workers and it won&rsquo;t get &ldquo;tired.&rdquo; If you&rsquo;re using a PERL script to do the same thing, you&rsquo;d be tied to running it on one Unix host with one set of CPUs. With RPA, you can do this across as many hosts as you like, with as many virtual workers as you want.</p> <p>While the capability of RPA is virtually without limit, it is important to keep the automations as simple as possible. It is very easy to extend a software robot to keep including more and more of the process, but hard learned lessons indicate that this usually ends badly.&nbsp;</p> <p>An individual robot should have a role in performing a task, without taking on all the burden itself. It is important to remember that robots can communicate with one another and therefore share the workload. A series of robots can work together to complement each other to complete very large, complex tasks. The result is light weight robots that are easy to learn and easy to continuously improve.</p> <p>Regardless of whether you&rsquo;re using low code or no code RPA, or looking to execute code commands to achieve different goals, it&rsquo;s essential that any approach to RPA starts small and implements a Proof of Value (PoV.) This is an opportunity for organisations to get to grips with RPA and figure out the types of processes that will deliver the most benefits from automation. Ultimately a PoV will also help you to examine how different approaches to RPA may work to produce the best solution-driven services for your business or organisation.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/software" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Software</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Technology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/system-engineering" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">System Engineering</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/code" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Code</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Outsource Your Coding...to RPA - Future of Sourcing" addthis:url="https://futureofsourcing.com/outsource-your-coding-to-rpa"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sun, 17 Nov 2019 17:52:17 +0000 Grant Grobler 1638 at https://futureofsourcing.com https://futureofsourcing.com/outsource-your-coding-to-rpa#comments Innovations in Digitization: TIAA https://futureofsourcing.com/innovations-in-digitization-tiaa <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/FOS%20Header%20Image_Innovations%20in%20Digitization_1.png"><a href="https://futureofsourcing.com/sites/default/files/articles/FOS%20Header%20Image_Innovations%20in%20Digitization_1.png" title="Innovation in Digitization: TIAA" class="colorbox" rel="gallery-node-1595-e8RQjS4sV_g"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/FOS%20Header%20Image_Innovations%20in%20Digitization_1.png?itok=5sOgHtQl" width="624" height="325" alt="Innovation in Digitization: TIAA" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p>This October, the&nbsp;<a href="https://futureofsourcingawards.com/?__hstc=215510152.344406f4865c40604cf6029be7e958e0.1543422516683.1570117954601.1570123446421.621&amp;__hssc=215510152.10.1570123446421&amp;__hsfp=2721840510" target="_blank">Future of Sourcing Awards</a>&nbsp;will celebrate organizations and individuals that have shown innovation, leadership and transformation in categories that are critical to the sourcing industry. Interviews with the finalists provide helpful insight about their projects, the problem they sought to solve and the impact to their organizations. Read how sourcing team members at TIAA centralized and automated the initial engagement process of new sourcing deals, getting hours of manpower back on their calendars.</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <h3><em>Can you outline why your team embarked on this project and the problem that needed to be solved?</em></h3> </div> <div>Our Sourcing team members continually look for ways to improve processes and knew that time was being wasted emailing documents back and forth at the beginning of the engagement process for new deals. Version control for these documents had also become an issue. Additionally, business partners were constantly asking for status updates regarding their deals/contracts, wanting to know what progress had been made. These interruptions took approximately 10 mins each for the Sourcing Manager (SM) to research and provide a response and they typically occurred two to four times per day. As a result, for 30 SMs, approximately 75 manhours per week were spent on these inquiries. Because of this, an opportunity to centralize and automate the initial engagement process as well as develop a Contract Status Tracking tool was explored with the goal to remove administrative burden, increase capacity for more strategic, value-add work, and enhance the customer experience. It was then determined that a low-cost option was available involving Robotic Process Automation (RPA). The reason this was low-cost is because members of the Sourcing team had recently received training, gained RPA experience, and formed a department-wide Center of Excellence to assist other groups with automating manual, repetitive tasks. Therefore, the technology and subject matter expertise existed within the group allowing the RPA solutions to be fully designed and developed by Sourcing, with minimal IT involvement (mainly assisted with cybersecurity) and no external consulting necessary.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>How were things done originally and what was the inspiration to innovate the process?</em></h3> </div> <div>Prior to automating the Sourcing engagement process, a Business Partner (BP) looking to hire a third-party supplier had to first contact someone in Sourcing to determine which SM they should be working with (based on the category of the supplier to be engaged). The SM would then send the BP a document containing the information needed to begin an engagement. Once that form was filled out (typically after several back and forth conversations), it had to be emailed back to the SM. The SM would then manually enter the data from the form in to our contract management system. Since these forms were often missing information, the SM would then have to contact the BP to ask for any remaining information that may have been overlooked. Once all data was entered, the SM would then be able to initiate their Sourcing strategy and work towards creating a contract. &nbsp;</div> <div>&nbsp;</div> <div>As for tracking the status of a contract, BPs would have to contact their SM and ask for updates. There was no online system that they could access in order to see progress and/or major milestones completed.&nbsp;</div> <div>&nbsp;</div> <div>Both processes described were inefficient and administratively burdensome. Knowing this inspired our team to innovate and we were ultimately able to make substantial improvements.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What KPIs did you use to measure success for this project? (For example: performance, customer satisfaction, revenue, sales or relevant financial gains?)</em></h3> </div> <div>Outcomes were measured based on feedback from BP surveys, SM feedback/surveys, and usage metrics for the online Sourcing Engagement Form (SEF) and the Contract Status Tracker. In addition, we utilized Tableau to connect to our SEF data and create a dashboard to monitor bot activity, cycle times and item aging. All metrics moved in a positive direction indicating overall success of the project.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>How do you plan to ensure that the new model remains relevant and adapts to the future needs of the market?</em></h3> </div> <div>We have multiple people on the team that are very familiar with SharePoint, RPA, the SEF and the Contract Status Tracker. Therefore, as control processes or other processes change, we have been able to modify the intake fields on the SEF, adjust milestones and other information on the Contract Status Tracker, and update our Intranet site to ensure that we are always in compliance and aligned with the latest requirements.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What advice do you have for those who may want to implement this innovative approach in their own organizations?</em></h3> </div> <div>Implementing RPA and other automation solutions can be cumbersome and costly if relying on a third party vendor or external project management that does not have a thorough understanding of your team&rsquo;s Sourcing processes. Therefore, we found the greatest success and ROI after investing in the development of our own people to build their skillsets and capabilities. By training our team members and allowing them to take the lead in managing and developing our automation projects, we have saved on cost and time since these internal project leads were able to use their knowledge to ensure that the solutions they were implementing properly aligned with our goals and processes and that meaningful data was being produced.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>With innovations in digitization occurring very quickly in our industry, how do you see this specific project further transforming in the future?</em></h3> </div> <div>In addition to the RPA software being used for our processes, we&rsquo;ve started using Alteryx and Tableau to streamline our analytics and the enhancements we&rsquo;ve made through this project are generating new data for us to analyze in the following ways: &nbsp;</div> <div>&nbsp;</div> <ul> <li>The SEF allows us to monitor engagements and response times via Tableau in real time&nbsp;</li> <li>Alteryx is helping us combine spend data sources across our subsidiaries to produce more holistic spend analysis&nbsp;</li> </ul> <div>The new data generated along with the time savings resulting from the reduced administrative burden will allow us to place a strategic lens on areas we were unable to focus on previously and continue to improve our processes. &nbsp;&nbsp;</div> <div>&nbsp;</div> <div>Further, the success of the Contract Status Tracker led to efforts to develop other self-service reports and following the initial application for this award, our team unveiled a new online &ldquo;Self-Service Reporting Center&rdquo; that includes not only the Contract Status Tracker but also interactive reports showing new deals and expiring contracts that BPs can filter/customize for their needs.&nbsp;</div> <div>&nbsp;</div> <div>The success of these projects also opened our eyes to other opportunities where RPA can help reduce administrative burden and we&rsquo;ve already implemented five processes and have three currently in development. We&rsquo;ve also started exploring over 20 additional ideas for potential RPA projects and thanks to our investment in developing the skillsets of our own team members, we can continue to develop these projects as internal, low-cost solutions.&nbsp;</div> <div>&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/digitization" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digitization</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/future-of-sourcing-awards" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Future of Sourcing Awards</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/analytics" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Analytics</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Innovations in Digitization: TIAA - Future of Sourcing" addthis:url="https://futureofsourcing.com/innovations-in-digitization-tiaa"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sun, 08 Sep 2019 04:18:06 +0000 Future of Sourcing Awards 1595 at https://futureofsourcing.com https://futureofsourcing.com/innovations-in-digitization-tiaa#comments