With 2018 coming to an end, many procurement experts and industry leaders have made predictions related to procurement, and what CPOs and procurement interims and professionals can expect in the New Year.
Transformed supplier management
It is anticipated that company and supplier relationships will change. It will transform into a true partnership with most procurement professionals looking to strengthen their relationship with their suppliers. Procurement will be looking to put their needs to their chosen suppliers in the hope of motivating them so that they supply quickly, efficiently, and at affordable costs.
Organisations will end up working with their suppliers to optimise purchasing of the requirement so that the company can become more competitive.
Adoption of blockchain and digitalisation
Digital transformation is also creeping into procurement. Organisations have a lot of data but cannot use it optimally. As a result, organisations are shifting towards the latest technologies, such as blockchain technology, digital assistants, and robotic processes.
Blockchain will become one of the preferred technologies for storing and sharing data securely, especially as it brings transparency to the entire procurement process.
Corporate social responsibility (CSR)
Organisations are now paying more attention to CSR, which has also become an important criterion in procurement. Small and large businesses and the public sector are scrutinising their supply chains to ensure that modern slavery is not part of the procurement process. They are also publishing annual reports to highlight the measures they have adopted to eliminate modern slavery from their supply chains. Other organisations are focusing on ISO 2400 accreditation and incorporating the applicable steps to comply with the standard.
This focus on CSR in procurement will continue in 2019, with companies becoming more aware of their responsibility to the community in which they operate, and also towards their purchasing policies.
Greater risk management
With Brexit looming, and protectionism and trade wars ongoing, procurement departments are set to be faced with many risks including payments, price volatility, supply assurance, regulatory compliance and customer perception. While still needing to think long-term and keeping an eye out for strategic opportunities, they will also have to work on all fronts to meet mid-term cost management needs.
These are some of the procurement trends that will become part of organisations’ in 2019.