Procurement trends have changed drastically over the last several decades. These changes have been noticeable in the last decade.
Procurement professionals have desired to be known for more than working in the background, to stop being identified as purchasing supplies at lower cost than was paid the year prior. They would rather be recognized for the positive contributions and value they can add with respect to product innovations, analytical evaluation into the supply chain, and reducing risk. Through our stories, we have reported this journey since 2006 and we will continue to document advances in procurement trends.
What is to come? What procurement trends will we be discussing in a decade?
Risk will be inherent. With the valuation of sterling at a decline after the UK’s ruling to withdraw from the European Union, economic instability will most likely remain, especially while future relations between the UK and EU are uncertain. More companies may be convinced to localize their supply chains, because tariff-free trade will change.
Additional procurement trends will center on focus on sustainability. Both consumers and governments will appeal to businesses to make their products more durable. This expectation will carry over to procurement to fulfill enhanced production along the supply chain. Procurement trends suggest more pressure on fulfilling these expectations.
Energy will be pushed into driving more value from the supply foundation, which will centre on engaging with suppliers to promote advanced developments.
The operation cannot sustain itself if it returns to continuous cost cutting under any circumstance. While procurement trends change, the responsibility of procurement will indefinitely be to minimize costs. However, the focal point must stay on the wider value it can add, or else it will rapidly lose its reputation that has been secured within the business and jeopardize the synergistic associations it has developed with suppliers.
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