AUTOMATION IN MARINE PROCUREMENT 2 case studies and interviews with senior procurement professionals Written by Tom Holmes, editor of the IMPA magazine We would like to express our thanks to the contributors to this article and especially to Sim Teck Siang from Berge Bulk and Lars Andersson from Maersk.
Contents 1. Introduction: Automation in Marine Procurement 2. Case Study: Berge Bulk 3. Case Study: Maersk
Case Study: Berge Bulk
Efficient & effective “We have been enjoying this type of automation for a while,” says Berge Bulk’s Sim Teck Siang. “It’s definitely necessary for the purchasing departments because with the volumes we deal with today, it’s just not efficient to handle the data entry manually. “Going down line items is indicative of where procurement was even a few years ago. And of course, there’s value outside of the speed and efficiency of processes. What we are doing now has doubled the efficiency of each purchaser since it was introduced; now that they don’t have to handle the data manually. It is not something we can live without – automation is necessary.” Sim says that for his organisation and for the wider industry, current applications are the tip of the iceberg as far as automation is concerned. Given the intricacies of the entire procurement process, he believes that predictive analytics and automation will combine to supercharge the value that automation delivers. “If you look at the purchasing process, there are still areas where automation can take place. It may be before the requirements start, on the forecasting side of things. How can requirements be forecast, so that we aren’t caught in a position where we have to react quickly and stretch resources unnecessarily?
“Automation can also be used more effectively in the RFQ process. Currently, most organisations are guided by a purchaser’s hunch, or their experience. We are working closely as a team to identify key items, to have a strategy around the companies we approach. “In that scenario, data would be used to translate certain items or for certain requirements, and the enquiry could be made automatically. There’s real value in that because the strategy becomes more robust and much more complete because automation facilitates accuracy.”
It’s definitely necessary for the purchasing departments
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