2016 was quite the year. Major social and political shifts have left no corner of the world immune to supply chain disruption. As a result, many companies have shifted priorities, investing in their procurement and supply management operations in an effort to proactively mitigate risk and gain a competitive advantage.
In helping industry leading organizations develop strategies for improving supply management operations, our executives have observed a number of trends. In Source One's new downloadable document, 7 Procurement Trends to Watch in 2017, our experts have pulled together the top procurement trends they anticipate continuing in the upcoming year.
Take a brief look at the trending procurement and supply management priorities for industry leading organizations and they strategies they're implementing in the list below. For a more detailed look the drivers and results of these initiatives, be sure to check out the 7 Procurement Trends to Watch in 2017.
Saying “Goodbye” to
Decentralized Buying
Some organizations consider their decentralized purchasing
routine, while others have recently recognized the need for centralized
departments, specifically procurement, to better direct spending decisions. A
focus on guiding supplier relationships, contract management, and cost
–reduction efforts is crucial for businesses aiming to grow and succeed.
Transcendence of
Procurement through Transformation
Advancing tools and technology, evaluating processes and
metrics, and promoting Human Capital practices are all priorities of maturing
procurement departments. Professionals in the industry are setting, and
reaching, new goals to gain a competitive advantage for their organization by
leveraging procurement.
Changing the
Conversation to Action
When it comes to achieving the desired results, implementing
plans is the key to seeing a change. Strategies and roadmaps that can actually
drive improvement are crucial for putting these plans into place and making the
changes your organization needs to advance.
Hiring with an Open
Mind
It comes as no surprise that good Procurement and Supply Management talent is hard to find. As this "candidate market" has continued over the past year, more and more companies are taking a different approach to recruiting. Rather than focus solely on the hard qualifications (such as years of experiencing X category) of potential employees, hiring managers are assessing their soft skills (such as mathematical and analytical skills) and the ability to apply those skills to their organization.
Matching Metrics to
Maturity
As the industry matures, procurement is creating more a name
for itself than just being capable of creating visible savings. The role of the
procurement department is becoming more focused on the value beyond cost
reduction efforts, such as a supply base diversity and supplier driven
innovation.
A Blurring of Lines
Between Services and Solutions Providers
Having to choose either a solution for technological needs
or specific support service is no longer a concern, as today’s services
providers offer both solutions and support in one place. Today's providers are making the decision simple for clients, delivering strategy and services backed by technology.
Building the Business
Case by Comparison
It’s more than being aware of what your competitors are
doing, it’s recognizing how you can leverage their smart decisions to prevent
your organization from falling behind. While copying their every move isn’t
going to guarantee you will be just as successful, understand how your business
can benefit from being in sync with the competition.
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