As the year comes to an end, the focus has shifted to what the future holds for procurement. New technologies are to transform procurement, changing the way that businesses operate.
As a procurement professional, it is imperative that you know what the future holds for your industry. Here are some procurement predictions for 2020.
Data analysis for decision-making
Procurement is crunching a large volume of data and analysing it. In the coming year, this data will be used by CPOs and procurement professionals to make real-time decisions. As a result, many of the business functions can be performed in a faster manner. Using data, procurement can discern whether suppliers have the financial capability to meet the requirements of a contract, whether they adhere to social ethics, and possible disruptions in supply chains.
As consumers get more environmentally conscious, companies are going green. In 2020, companies will opt for sustainable procurement to address concerns that consumers have about modern-day slavery and the origins of the products. Most companies will look to align with suppliers that are likeminded so that they can comply with prevailing laws and also ensure sustainable procurement across their supply chains.
Blockchain for supply chain transparency
Blockchain will gradually make its way into mainstream procurement, with more companies utilising it to build trust and transparency across supply chains. In a globalised economy, companies have to deal with global networks, and as a result, data can lose accuracy. However, using blockchain technology can help them validate the origins of the goods and raw materials and ensure that the supply chains stay clean and risk-free.
Procurement will be responsible for risk management
With companies getting particular about labour practices, safety and sustainability, it will become procurement’s responsibility to ensure that they handle risks and compliance issues with dedication and care. Rather than sales and marketing, it will befall on procurement to handle different risks not just related to suppliers but also the entire supply chain. This will propel procurement and make it an integral part of the organisation’s strategy.