The effects of the COVID-19 epidemic are still being felt, and how. Despite these persistent disruptions, supply assurance has now moved to the top of the board’s agenda for all enterprises as the new year has begun. 81% of executives concur that procurement practises need to be altered for the upcoming years. The global market for procurement software, which was estimated to be worth USD 7058.52 million in 2021, is expected to grow to USD 14977.19 million by 2029, according to studies. By the end of 2023, it’s anticipated that the market may even outperform expectations due to a stronger requirement to control supply chain risks, optimise cash flow, and ensure sustainable value.
Procurement trends in 2023
Experts Predict That The Rise In Complexity And Dangers Will Have An Impact On Future Trends In Procurement.
The Following Are Our Forecasts For The Top Purchasing Patterns In 2023:
Developing Resilient Supply Chains
Many procurement teams are attempting to reconstruct their supply chains so that they are more reliable, collaborative, and accessible in an effort to recover from the pandemic’s effects. According to a Capgemini survey, 57% of organisations are reportedly consulting a sourcing and procurement consultant to boost their investments in improving supply chain resilience. Among the strategies for procurement resilience are:
- Supply chain diversification through partnerships with regional vendors, the creation of fresh delivery plans, and the use of numerous suppliers.
- Stockpiling is the practise of maintaining inventory for “just-in-case” circumstances.
- Reducing reliance on offshore alternatives or high-risk regions for supply acquisition.
- Concentrating on approaches to supplier relationship management.
Spreadsheets have been used by businesses for many years to track crucial supply chain management data. However, these techniques are wholly inadequate for modern supply chains, which are complex and data rich. A full analysis of the supply chains’ strengths, weaknesses, bottlenecks, and stress points that have a substantial impact on business performance is possible with the help of advanced analytics, which provides procurement with data-driven knowledge and the power to make decisions.
Blockchain helps boost supply chain transparency and secure sensitive data, eliminating disruptions and giving the client a clear service. Hence, it is unquestionably going to be a major advancement for procurement in the future. Get in touch with a sourcing and procurement consultant to incorporate blockchain technology into your company.
Sustainability, which was once an innovative strategy, is a “must-have” today. To maintain sustainable value chains and prevent and mitigate future crises, governments around the world are introducing legislation requiring due diligence and adopting EU-CSR policies that promote environmental and human rights due diligence.
Figures show that by 2025, the worldwide AI market is anticipated to reach $190.61 billion. AI software makes the promise of speeding up laborious operations and delivering insights based on large and complex data sets. AI is mostly used in the procurement industry for applications relating to supplier data management, spend analytics, and contract management. If you want to know how AI can benefit your business, get in touch with a sourcing and procurement consultant.
IoT And The Digital Supply Chain
An individual’s personal and professional lives are impacted by the internet of things. IoT is a crucial enabler in procurement, and in 2023, its uses have become more apparent. With the help of IoT, businesses can see everything more clearly, including consumer consumption trends and expenditures. Real-time data monitoring facilitates improved decision-making. Companies are better able to control supply and demand realities thanks to this kind of insight, which also equips them to conduct more streamlined and effective negotiations with suppliers.
A risk that cannot be understated is cybersecurity. According to a survey recently released by Reinsurer SCOR, supply chain cyberattacks increased by an almost unfathomable 430 percent in 2021. 60 percent of organisations acknowledge that they “don’t have full visibility” of the cybersecurity dangers that exist within their supply chains, according to a PwC survey conducted earlier in 2022. The word “admit” may be the most significant one here because, even for the other 40%, we can only depend on what they themselves said in a poll. Undoubtedly, this is a precarious position, and in 2023, millions of organisations are already confronting their cybersecurity dangers head-on.
Redefining Role Of CPO
In recent years, there has been a significant change in the role of CPO. It should now be considered a crucial strategic role rather than a strictly operational one. 2023 is going to redefine the role of CPO as it assesses how an organisation conducts business amid trying times.
Even if making predictions about the future is a dangerous endeavour, it is recommended to be ready than to be caught off guard as 2023 goes on. Contact a professional sourcing and procurement consultant to create a thorough digital roadmap and boost your procurement tactics while working on your annual procurement goals.