KEY PROCUREMENT TRENDS TO WATCH OUT FOR IN 2020
The world of procurement has undergone tremendous changes from the past couple of years. It is now time to look at what 2020 has in store. The New Year seems to be shaping up the procurement trends which were already started in 2018 or earlier and are expected to gain maturity in the coming year. Here is the list of top 7 procurement trends that we need to look out in 2020 –
1- HAVING A ‘DIGITAL STRATEGY’ IN PLACE
For long, the rise of digital technologies and its positive impact on procurement has been projected as a procurement trend. In 2018, we saw organizations finally moving to adapt to cognitive procurement technologies such as Big Data Analytics, Machine Learning, Natural Language Processing, Artificial Intelligence, and Robotic Process Automation. The year 2020 will further enhance the usage of these technologies.
2 – BUILDING TALENT POOL TO EMBRACE DIGITAL TECHNOLOGIES
The procurement function has to move from delivering cost savings to providing a strategic edge to the organization. To build a holistic supply chain and to drive enterprise-wide cost reductions, procurement has to utilize the maximum value out of digital technologies. Procurement professionals would need to acquire the critical skills to succeed in a digital world and to remain relevant in the market.
3 – THINKING SUPPLIERS BEYOND THE PRICE
Collaboration with suppliers remains a critical approach for all these years. With advanced technology and the changing landscape of supplier management, the procurement function has shown the tremendous scope of improving the relationship with suppliers. Now, buyers cannot afford to communicate with suppliers just over the price. They need to involve them in more strategic decisions right at the initial planning phase. Suppliers thus become an integral part of any supply chain and can play a pivot role in making/breaking the backbone of the procurement. In 2020, more focus would be given in improving work synergies with suppliers. Suppliers will have visibility of all the steps in the procurement cycle to help in getting the best pricing and reducing the risk quotient.
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