The procurement industry has been experiencing major changes, with a focus on efficient and strategic processes that involve data-based approaches, sustainable practices, and collaboration of all stakeholders. When properly managed, procurement operations can help you control costs and improve your company’s reputation and profits. If you want to stay ahead, it is important to keep constant track of the procurement process and keep up with the latest trends.
Knowing the latest procurement trends can help you succeed. Some of the big trends shaping the future of procurement are as follows:
1. AI & Automation
AI and robotic process automation (RPA) are two key developments affecting procurement. AI can learn from past behavior to automate specific tasks such as spend analysis and inventory management. RPA involves learning and repeating human behavior so that manual processes can be handled by systems.
New developments in AI and automation mean that procurement workflows will become more cost-efficient and time-saving. Procurement teams can benefit from these technologies by gaining quick access to actionable insights. Machine learning and automation technologies can also improve the quality of:
- Anomaly detection
- Predictive modeling
- Risk management
2. Access to Better Digital Tools
Digital tools are changing the way organizations manage their supply chains. Systems that enable productive analysis and automated sourcing are improving efficiencies across the value chain. When your business moves away from manual processes and relies on digital tools, your team can manage procurement more effectively.
Such tools assist with managing:
- Cost management
- Inventory levels
- Contract lifecycle
- Supplier relationships
Powerful government procurement software can help you streamline your processes and gain valuable insights.
3. Sustainable Procurement
The importance of sustainable procurement practices has been recognized increasingly across different industries. Some of the most notable sustainability goals being pursued by procurement teams include:
- A more responsible approach to supplier sourcing and selection
- Reduced carbon emissions
- Waste reduction across the procurement process
Sustainable procurement is also encouraged by consumers who have become increasingly environment-conscious and seek increased transparency into the origins of the goods they purchase.
4. Use of Cloud-Based Platforms
The use of the cloud brings scalability, flexibility, and cost savings into the procurement process. Besides, cloud-based procurement systems offer several advantages offer on-premise solutions. This includes simpler integration and better disaster-recovery protocols.
5. Improved Risk Management
It is important for procurement teams to be able to proactively identify and address risks. Amid a wide range of uncontrollable factors, procurement teams need to quickly determine, address, and manage challenges to minimize or avoid disruptions to procurement operations.
These challenges include:
- Uncertain political scenarios
- Constant changes in suppliers
- Ever-looking cyber threats
More businesses are investing in procurement risk professionals for better process monitoring for risks within the supply chain.
Effective risk management also involves team awareness of risk and accepting the importance of supply chain resilience. Procurement leaders mitigate risks by building a culture of risk awareness and assigning resources to supply chain resilience projects.
6. Robust Procurement Compliance
As regulations increase, there is a need for increasingly robust procurement compliance capabilities. Such compliance allows businesses to control their spending and follow proper procurement standards. Ensuring compliance is essential to every company’s risk management strategy. Since regulatory requirements can change across the supply chain, it is important to be always prepared to adapt to ever-changing procurement policies and practices.
These are the most important areas that have been undergoing dramatic developments and changes in the procurement industry. A lot of new innovations are taking in this field, as more organizations are partnering with suppliers to create new solutions and technologies. The development of new collaborative platforms, agile supplier management systems, digital procurement, focused training and upskilling, and procurement diversification are some of the different areas evolving in this field.
