With the procurement industry experiencing continual transformations, companies are facing the dire need to look for new ways to assess, increase, and monitor the efficiency of their procurement process. They are now expected to devise an effective procurement plan that can enhance their sourcing and procurement process.
However, doing this is it is not as easy as it appears to be. Companies are driven by different environmental and social risks and require transparency in their supply chains. As a result, more comprehensive methodologies need to be embedded in the procurement process and to ensure sustainability. At SpendEdge, we understand that procurement is not just limited to minimizing costs or mitigating risks. Therefore, in this blog, our team of experts has highlighted the key procurement trends that are going to impact businesses in 2019.
Have you ever thought why some procurement organizations fail to keep up with the demands? It’s because they fail to predict future procurement trends. Get in touch with our experts and know how major procurement trends can affect your business.
Top procurement trends for 2019
Surge in digital technologies
Digital technologies such as blockchain, cryptocurrency, cloud, and artificial intelligence (AI) are among the top procurement trends for this year. One of the key reasons behind the emergence of digital technologies is the willingness of companies to make the digital business a top priority. Companies are now finding significant automation potential in transactional activities and strategic tasks and bodes well for most businesses since it will enhance their efficiency.
Although digitization is taking a leading edge, the growing amount of data is leaving the entire supply chain vulnerable to cyber threats. This is the reason why cybersecurity is considered to be one of the major procurement trends for 2019. Organizations can adopt various strategies such as limiting supplier access to IT systems and ensuring compliance to enhance their procurement process.
Focus on reducing indirect spend
Indirect spending has always been a prime concern for procurement organizations. It involves a large supplier base and a comprehensive governance process to avoid leakages, contract terms, and paperwork. Over time, these factors become so complex that organizations start losing out on crucial opportunities. Therefore, organizations have started looking for automated financial and tail spend management solutions that can ease out the complete process for them.
Interested in reducing the indirect spend for your organization?
Prominence of big data
Disruptions in the supply chain can lead to increased costs, labor unrest, and customer service challenges. Big data can provide critical insights required for predicting events or disruptions. Businesses just need to collate data points from all sources and align them to their business operations to make the most of big data solutions. These benefits are making big data one of the main procurement trends for 2019.
Enabling sustainable procurement
With procurement functions shifting beyond cost management, procurement organizations have started employing sustainability as a lens to identify environmental and social risks. This is because environmental risks such as resource and raw material scarcities are increasing. Also, risks associated with social factors are becoming more visible and less acceptable as the younger generation of consumers is entering the prime purchasing age. Analyzing procurement trends will help businesses in sustainable procurement and entailing performance-based metrics into each phase of the procurement plan.