A lot can be said about how procurement has evolved over the last decade, and it’s the time of year when every procurement blogger begins to speculate about the direction of our industry.  Is this the year where procurement is finally recognized as strategic?  Will new and improved spend analysis tools allow us to predict and pro-actively reduce spend?  Is savings still going to be a metric for procurement in 2016?  Might it get replaced with something new and improved, like the Cloud?   

It’s very difficult to answer these broad questions, but as a boots on the ground consultant, I bear witness to the goals and objectives set by procurement teams across a large client base that spans a multitude of industries.   I can tell you definitively what procurement groups are planning at a granular level.  These new sourcing tactics will become commonplace in 2016, and set precedence in our field for years to come.  For your consideration, attached are the top 5 procurement trends you can expect to see in 2016.

1.       Procurement groups will exceed their savings targets by a wide margin - Procurement organizations, faced with diminishing returns and limits to what they can address at an organizational level, will begin to operate under a fiscal year that will be 24 months long.  This transition will allow them to functionally reduce their corporate savings objectives by 50%.

2.       The Big Data bubble will finally burst - Big Data in procurement will see its first slight decrease in size.  We’re expecting to see this trend continue in following years until plateauing at Medium Data in 2019.

3.       New currencies will be used to leverage the supply base –suppliers will continue to push back on customer requests for standard payment terms that range from 90-120 days.  To address this issue, finance departments will look for new ways to screw their supply base.  As such, Bitcoin transactions will begin to replace USD-based transactions for leading companies.

4.       Next Level negotiation tactics will become more commonplace – With procurement teams increasingly being asked to do more with less, new negotiation tactics are being developed to streamline the sourcing process.  A critical aspect for “next level” negotiations will be the increasing reliance on suppliers to provide experts to negotiate their own contracts on behalf of customers – saving them time AND money.

5.       Indirect spend will decrease – Frustrated with the time, complexity and subject matter expertise required to effectively address indirect spend, more companies will experiment with converting indirect spend into direct spend.  Not surprisingly, this conversion will also mean that direct spend will increase this year.

      Based on these trends, it is clear that 2016 will be the year procurement finally realizes its full potential, shifting, wholeheartedly, from tactical to strategic.  For procurement leaders looking for ways to elevate their brand within the next year, the question should not be if these trends will occur, but how fast can they be implemented.  One thing is for certain, 2016 will be an exciting year for all of us!

Share To:

Joe Payne

Post A Comment:

5 comments so far,Add yours

  1. Diabetes can create a skin issues. Skin is the largest part of our body. There are minor issues which can be mainly cosmetic or others can be fatal. Diabetes dry out the skin. Some medication when applied can worsen the problem. When blood sugar is high in the body it loses fluid and skin become dry. Dry skin happens due to damage of nerves which cause sweating in the body. Sweating is the main lubricating system of the body.

    Diabetes with dry skin has many concerns. Due to dry skin, peeling and cracking of the skin happens. When the skin breaks then bacteria and fungi enter the body. Bacteria and fungi thrive on blood sugar and it lessens the ability of the body to heal. So infection will spread in the body. Several different kind of bacterial infections occur with people who have diabetes.
    Some are as below:

    • styes in the glands of the eyelids;
    • boils;
    • folliculitis of the hair follicles;
    • carbuncles — very deep infections of the skin and underlying tissue; and
    • infections around the nails.

    When there is a bacterial infection, there is a redness around the crack or the cut. People with diabetes does not feel pain. That is a big disadvantage. When infection progresses there will be a drainage from the wound and that area will be warm.
    Generally fungal infection creates a rash of moist, red areas surrounded by tiny blisters. It occurs in moist and warm areas. Common fungal diseases are jock itch, athlete’s foot, ringworm and vaginal infections.

    In ulcers there is a large open wound where you can see the bone itself. It occurs in areas which gets most pressure like ball, heel and side of the foot. Ulcers can occur on the scrape that does not heal. Diabetic people are more likely to develop ulcers. Lessened blood supply to the area leads to inability to get antibodies and other infection fighters to the ulcer. Deep wounds occurs from diabetes due to nerve damage. Because of nerve damage the pain is not felt and the chance of early detection is lessened. Due to skin ulcers people loose limbs.

    To prevent skin problems, check your body daily. Look for red spots, blisters and sores that can lead to infection. Also look at the bottom of the feet and in-between the toes. Below are the ways to prevent skin problems:

    1. Wash body thoroughly with mild soap in warm water. Hot water can burn the skin. Hard soaps makes skin dry.
    2. Dry the body completely –especially between the toes to avoid fungal growth.
    3. Even though sun is not out, use sunscreen with a level of SPF15 or above.
    4. Drink lots of fluids – water to keep the skin moist.
    5. If in the house the air is dry then use a room humidifier to add moisture to the air.
    6. Wear warm gloves and footwear when temperature drops.
    7. Wear white cotton underwear. Cotton lets air move and there is no dye on white clothes to give the irritation and rash.
    8. Use moisturizer to keep skin smooth.

  2. The association between diabetes and carbuncles is widely known. Though, few consider the wrath of diabetes' cousin: quadrabetes, known for such ailments as tabernacles, turnbuckles, and barnacles. Interestingly, carbuncles can be cured by purposefully infecting a diabetic patient with quadrabetes which is obvious due to the fact that these viruses' infections, tabernacles and carbuncles, cancel one another out. Unfortunately, this method of treatment still often results in a relatively benign form of octabetes, which can be aggravated from time to time by barnacle or turnbuckle flare ups.

  3. Anonymous,
    That is a great point, and thank you so much for sharing. The medical community, lead by the research team of Dr. Joe P (a notable physicians at John Hopkins), has been conducting stage 2 clinical trials into the use of quadrabetes to treat diabetes. As you indicated, while patient results have been overwhelmingly positive, the side effects of octobetes can still cause mild to moderate discomfort; particularly in hispanics and the eldery.

    The primary symptom of octobetes, Barnacles, fortunately are easily removed with a assistance of some rubber gloves, a putty knife, and a little bit of elbow grease. However, continued exposure to high humidity conditions can exacerbate and inflame the condition, and it is for this reason that patients must often carry a bumbershoot with them at all times.

    Turnbuckles, for obvious reasons, are the real concern. Diabetes patients are often uncomfortable with the idea of trading the dry-skin symptoms of diabetes for the real world challenges faced by turnbuckle sufferers. This has caused the use oquadrabetes to stall in gaining popularity as an acceptable treatment to diabetes.

    This is where Dr. Joe P's team comes into play. His team has been experimenting with the use of a toggle-pipe in treatment. While on the surface, this is a bit unconventional, it does emulate the rod and hole plunging method first documented being in use by the Greeks (some contest that it dates back to the Egyptians).

    The plunging method certainly requires more research, but Dr. Joe P is up for the task. With any luck, we'll be seeing the first over-the-counter self treatments arrive in this decade.

    -Yagnesh out!

  4. The biggest threat this country now faces is flying diabetes. The reason is simple - these are diabetes that can fly.

  5. Dr. Joe P, we are honored you joined our discussion! What are your thoughts on STDs (sexually transmitted diabetes)?