Page 44 - Moglix PR Report - April 2024

5/3/24, 11:44 AM Riyadh Daily

Piyush Malviya, Vice President and Head of Moglix, MEA

By Piyush Malviya, Vice President and Head of Moglix, MEA
How innovative procurement services influence a company's approach to supply chain
management?

In today's dynamic business landscape, procurement is no longer a back-office function. It has become a strategic weapon,
fundamentally shaping a company's ability to source superior products and services. This is precisely where innovative procurement
services, particularly Procurement as a Service (PaaS), are revolutionizing how companies in the Kingdom of Saudi Arabia (KSA)
manage their supply chains.

PaaS transcends the traditional transactional focus of procurement. It establishes a robust framework encompassing strategic
sourcing, expenditure management, category management, process management, contract management, and transaction
management. Each element acts as a finely tuned gear within a well-oiled machine, driving significant gains in productivity,
streamlining processes, and delivering substantial cost savings.
The eCommerce market of Saudi Arabia is projected to grow significantly at a compound annual growth rate (CAGR) of 15.01 per
cent between 2024 and 2029 to reach USD 27.37 billion in 2029 from its estimated value of USD 13.61 billion in 2024. This growth
trajectory is significantly strengthened by the government’s increased support aimed at hastening the adoption of advanced digital
technologies, in alignment with Saudi Vision 2030 strategy.

This national transformation plan aspires to propel the Kingdom's Logistics Performance Index from 49th to a remarkable 25th
place. Furthermore, it envisions a dramatic increase in non-oil exports, boosting their contribution to GDP from 18.7% to a
staggering 50%. PaaS solutions empower businesses to become instrumental players in achieving these objectives.
Strategic sourcing, a cornerstone of PaaS, fosters the creation of strategic alliances with suppliers. This fosters innovation, reliability,
and efficiency throughout the procurement process. This directly aligns with Vision 2030's aim to enhance competitiveness in the
Saudi market and diversify the economy. PaaS also offers a suite of spend management tools that provide businesses with
unparalleled visibility and control over their expenditures, leading to significant cost optimization.

Category management within PaaS frameworks enables companies to meticulously categorize their procurement activities based on
product or service type. This approach translates to enhanced oversight and control, ensuring optimal resource allocation. Process
management tools further streamline workflows by minimizing manual intervention, leading to faster decision-making. This way of
working prioritizes productivity and resource optimization, directly contributing to the broader goals of Vision 2030 for improved
operational efficiency and economic prosperity.

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