Is your company ready for Procurement in 2020?

Will anything change in 2020? Procurement in 2020 will shape our SCs, no doubt. It is a large-global...

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Posted by Dave Food on Feb 11, 2020 3:32:00 PM
Dave Food

Will anything change in 2020? Procurement in 2020 will shape our SCs, no doubt. It is a large-global transformation managing the future.

Procurement has been experiencing significant changes in recent years: forecasting, researches, webinars, infographics, report titles, and much more. These trends developing within Procurement for the last years call for urgent action.  

The leading causes of this sort of SC are the complete integration of business systems, value creation, and innovation. Automation represents significant changes. However, only some companies have transformed Procurement to fulfil current demands. Procurement in 2020 will defines our need for talent, corporation structures, processes, systems, and tactics for the future.  

Top ten trends for Procurement 2020

  1. Integration, transparency, alignment, agility, and flexibility will dominate the competition.
  2. Supplier relationship management as a central capability.
  3. It lines up the business strategy to SC.
  4. Workforce backing business eventuality.
  5. It puts external and internal cooperation in the industry-front position.
  6. It highlights value creation over price managing.
  7. There is a shift in innovation strategy for SC achievement.
  8. Focus on asset management, logistics and distribution.
  9. Concentrate on portable manufacturing.
  10. Product life-cycles are shorter.

Expend in Talent development

Procurement has been developing to go along with SC shifting. Still, many organisations struggle to keep the pace; therefore, it is the right time to start investing in improving processes and in maturing skills to go forward and succeed. The Procurement career has tailored remarkable experts with a mindset to relocating strategies from merely price managing into strategic category value management.  

Data Fragmentation - Better integration

Procurement trends in 2020 are speeding up on better integration of SCs concerning demand and supply management, lean production, new product development, and shorter product life-cycles.   It motivates by the need to act quickly in response to the Procurement requirements in 2020.

Disregarding these Procurement trends could bring you serious shortcomings, competition taking the lead, diminishing market share, causing probable failure.

Every system in an organisation generates data, creating too much data to analyse., and making it difficult the storage it in different structures, like a cloud; handling loaded systems will question whose is the master dataset? The vast data is providing an objective look at business activity. Any intelligent solution requires top data to be comprehensive and representative of reality.  Procurement might well be the role to bring enterprise data into a consistent-centralised setting.

The current state of data is poor

Emerging technology is nothing without reliable data to run on.  Whether you are into AI, Machine Learning, Predictive Analytics, Robotic Process Automation (RPA) or Blockchain, most Procurement teams should be part of the solution.  It provides the opportunity to tackle some of the other disturbing problems disrupting companies data visibility.

Data Integrity

Procurement could bring all the quality data together into one database; without quality data, they could have duplication rates or outdated-incorrect-lost data, and most systems will either pause or deliver rubbish information.

Process agility and flexibility

Process improvement, considered as the primary objective of digital transformation, introduces automation into conditions where processes are ‘damaged’ consequently, being a waste of time and resources.   Before implementing exciting new technologies, Procurement needs to assess internal processes, using relevant- collaboration skills to enhance coworker’s growth, and for automation to bring value to become a reality.

Conclusions: the timing will be right in 2020 for Procurement to get real and beneficial to the business.  What will you do next if things were different driving meaningful changes for Procurement profession?

 

Dave Food

Prophetic Technology

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