3 Can’t-Miss Procurement Trends in 2019
There’s plenty to be said about procurement, the direction it’s going, and how we can pave a way for progress. Let’s cut to the chase and get right to these three procurement trends you can’t miss out on in 2019.
1. We must rise with the machines.
If projects cost money (they do), and money is scarce (it is), then the ultimate challenge for procurement pros is to complete projects without spending too much money. It’s easier said than done, of course, and at least one study seems to suggest that machines are better at managing money than the average human.
According to an article in Forbes, “Machine learning is a great fit for procurement” because purchasing generates data that we use to analyze ROI. And “88% [of procurement leaders] believe automation and robotics will impact procurement within five years.” But procurement leaders are still attached to analyzing the data themselves, thereby missing out on AI’s potential to read, analyze, and improve data. Forbes says it best: “With AI-enhanced data, procurement leaders can then leverage new turnkey machine learning capabilities in existing enterprise software.”
2. Let’s get digital.
If the AI revolution demands that we work with machines, how can we prepare ourselves to master the task? According to this piece by digitalistmag.com, “It’s time to upskill, reskill, and diversify the procurement function.” CPOs in particular are expected to make procurement more valuable to their company, and they can do so by building a team of creative, tech-savvy, innovative workers who understand the ins and outs of emerging technologies.
With a secure digital supply network, procurement leaders can modify processes and reduce costs—all without losing sight of their main mission. How can we improve procurement processes such as source to contract, procure to pay, and supplier relationship management activities? Deloitte suggests that “new operating models, organizational constructs, talent, and metrics will be necessary to embrace and nurture the new capabilities and meet heightened expectations.”
3. Implement an RPO or MSP.
Are these initialisms new to you?
RPO stands for recruitment process outsourcing, which is a service that can help procurement professionals lower the costs associated with acquiring direct workers. Sounds good, right? Yes, RPOs can be a game changer for your Procurement Department.
MSP stands for managed service program, which alleviates the burden of workforce management. An industry best practice for companies with an extensive contingent workforce, MSPs take care of critical procurement responsibilities, such as supplier alignment, supply chain management, billing duties, and compliance checks. MSPs help companies enhance candidate quality and decrease costs at the same time.