Procurement is an evolving sector, constantly overcoming new challenges. There are several key trends shaping procurement in 2017. We think it’s important that procurement specialists keep their eye on them, to stay abreast of the accelerated pace of change being experienced in all sectors, including ours.
Following are our picks for the 5 trends shaping procurement in 2017.
1. Risk management.
Procurement agencies in the top tier of the sector are those leading this trend. Their proactive approach to managing risk is part of the reason for their success and the fact that they’re returning enviable cost reductions and resulting profit margins.
These top-performing companies are introducing risk management strategies at every link in their supply chains, prompting others to follow suit.
2. Integrated Source-to-pay (S2P).
Connecting functions across organizations is another trend that’s being led by top-tier procurement entities. By linking processes like contract management and invoicing (for example), the challenges faced by procurement professionals are reduced. Connecting disparate functions creates greater efficiency in S2P by simplifying and integrating processes.
3. Centralized data.
It’s clear that one of the greatest challenges faced by procurement today is at the supplier level. To maintain crucial intelligence on compliance, managing risk and evaluating performance, top procurement companies are centralizing data functions to streamline the flow of information, making it easier to digest and interpret, as well as more readily accessible.
4. Predictive analytics.
Under 20% of procurement entities are employing these, to date. That number, however, is anticipated to increase to over 30% by 2019.
Allowing procurement to have a window into the immediate future, analytic examination of market trends, wage forecasts and other factors impacting cost in the procurement process is becoming one of the most important changes companies can make to improve performance.
Innovation both within procurement organizations and down the supply chain is how the top-performing companies in the sector are facing the future, head on. With the intelligent use of technology being a prime motivator, innovation comes second to profitability and cost reduction. But innovation is a driver of improvement in those key areas.
Savings are a primary concern, but technology’s ability to inform and connect can provide the conditions to reduce costs, while also driving forward innovation in organizations. Making them leaner and more efficient, technologically-driven innovation leads the 5 trends shaping procurement in 2017.
CenterPoint is a trusted procurement advisor, offering its members access to best-in-class pricing, significant cost reductions and seamless implementation. By leveraging our pool of member resources, we’re able to bring you material savings on organizational needs from cell phones, to vehicles, to office supplies.
We provide the purchasing power of numbers, which is the power of a resource pool allowing CenterPoint to procure what you need for greatly reduced cost.
If your organization is ready to take your procurement process to the next level, contact us for a free analysis. In the world of procurement, CenterPoint Group is a leader, changing the game for organizations with exceptional savings on their infrastructural needs.