What does the future hold for procurement services?

While there is nothing certain in this world - the only exceptions being death and taxes, as the adage goes - it is likely that industries will be evolving thanks to brand new technologies that have yet to emerge. Tech and gadgets have a habit of shaking things up, and the supply chain and procurement services are not immune from the reach of inevitable change. The only thing that is for sure in this business climate is that leaders and employees alike will need to adapt and adjust to the changing tides.

A glimpse into the future

Although we might lack the crystal ball to determine what's on the horizon in the years to come, we can reasonably surmise that as technology becomes more intertwined with our lives, the way in which we utilize collected data will change. Right now, analytics can only go back a few years, but what if the information were detailed and accurate enough to foresee dips due to weather patterns or political events? In 20 or 30 years' time, we might be able to prepare for specific events in a more in-depth manner and control costs down to the dollar.

As Procurement Leaders asserted, analytics and procurement will be very closely linked in the future. The source indicated that many CPOs and leaders are already using the existing data to make intelligent decisions and to better forecast demand, quality levels and performance. Not only will analytics help manufacturing operations, but it will also enhance a procurement service's buying power. "Knowledge is power" certainly takes on a new meaning in the procurement industry.

Preparing for the inevitable

Technology will be changing the field of procurement, most likely for the better, and leaders of the future will also need to up their game. Of course, tomorrow's CPOs will need to be well-versed in their understanding of analytics, but these people will face different challenges.

A separate Procurement Leaders article outlined several obstacles that CPOs need to be prepared to face in the coming years. Leaders need to be aware of unstable political regimes and the risk they present to the supply chain. Should government upheavals and coups be large enough, procurement services will need to practice strategic sourcing to get around new taxes or potential war zones. And as governments evolve, their currencies will go with them, causing a disruption in the exchange rate and leading companies to pay more for various services.

In short, things are changing for all sectors, and leaders will need to be proactive in their efforts to keep up and thrive.

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