As procurement is gaining more strategic importance within an organization.....
Today’s post is from our archives at SafeSourcing, Inc.
According to Zycus, there are 7 major trends that are happening in the procurement world. They started back in 2018 but are expected to grow quickly for 2019 and 2020. Here is a list of the new trends to look for in the procurement world:
- Having a Digital Strategy- 32% of procurement companies will start using a digital strategy. 85% of them believe that digital transformation will change the way they deliver procurement services over the next 3-5 years.
- Building a Talent Pool- 51% of the procurement owners believe their teams do not have sufficient capabilities to deliver on the digital procurement strategy. Companies are starting to use proper training programs to make sure their employees will be able to execute correct strategy.
- Thinking Suppliers Beyond the Price- Suppliers will have visibility of all the steps in the procurement cycle to help in getting the best pricing and reducing the risk quotient. This plan stands for a focused, smart and effective method of measuring, analyzing and improving supplier performance and reducing costs, increasing efficiency, enhancing vendor customer relationship, enhancing performance, preventing product issues and driving improvements in the supply chain.
- Risk Management- 65% of the procurement companies has little or no visibility in their supply chain.
- Indirect Spending- Indirect spending or tail spending follows the 80/20 rule, i.e., it constitutes 20% of the organization spent and involves 80% of the suppliers.
- Artificial Intelligence- Procurement teams will design and deliver intelligent robots to complete most procurement tasks with minimal human intervention. This will speed up the procurement process and minimize human error.
- Effective Change Management- In 2019, more organizations will focus on a smooth change management plan through increased focus on regular communication with the employees; engage them through the process and by providing training and support. Having proper support by management is key to running a successful procurement company.
Per Zycus, as procurement is gaining more strategic importance within an organization, the expectations from this function are also increasing. This year, procurement function will continue to deliver on traditional cost savings while focusing heavily on digital technologies and supplier synergies. Overall 2019 seems like a promising year full of challenges and opportunities for procurement to undertake. This is a great time to try the procurement world if you haven’t already. It’s growing and becoming a huge part of how people do business. We save our customers thousands of dollars every month.
For more information on how SafeSourcing can help in your procurement efforts, or on our Risk Free trial program, please contact a SafeSourcing Customer Service Representative. We have an entire team ready to assist you today.