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.