2017 Procurement Trends to Watch

By all accounts, 2016 was a year that will be remembered. There were triumphs for human health; both extreme poverty and child mortality are decreasing globally. The financial landscape for U.S. homeowners is changing; according to Bankrate.com, home mortgage rates were at an average of 3.79%, a historical low for the country. These were effects of the economy showing steady growth throughout 2016. However, the new U.S. political climate, an effect of the United Kingdom’s exit from the European Union, and continued turmoil in the Middle East has caused disruptions across different supply chains worldwide.

Taking all of these factors into consideration, proactive organizations leveraged this period of steady growth to reinvest in their supply management operations. Reflecting on the different strategies Source One has supported over the past year, as well as the trends observed in the industry, Source One's executive team shares their expectations for the top supply chain and procurement trends in 2017 in a new downloadable: 7 Procurement Trends to Watch in 2017.

According to our experts, 2017 will show an increase in centralized spending, a trend that gained popularity among numerous companies experiencing rapid growth. Prime economic trends allowed companies to say goodbye to decentralized spending, answering the need for more streamlined approaches to purchasing decisions. Stronger supplier relationship management, contract compliance, and category management allowed these companies to see greater value in the procurement process beyond cost savings. 

A remaining challenge is the limited talent pool of supply management and procurement professionals adding further complexity to staffing their supply management organizations. In addressing these challenges, Source One's executives have noticed changes occurring during the recruiting process in the types of qualifications they seek for their procurement teams. Rather than focusing solely on experience requirements, such as number of years sourcing a specific spend category, employers are assessing more abstract skills and qualities that can be applied to evolve their procurement practices. For example, future employers are taking into consideration mathematical and analytical skillsets, encouraging potential candidates to leverage these skills to challenge the status quo. Not only are these candidates capable of performing tactical job responsibilities, but they also provide unique perspectives that will ultimately improve the overall organization.

These are just a few of the trends expected to gain momentum over the upcoming year. For all of the Procurement Predictions for 2017, check out 7 Procurement Trends to Watch in 2017.