Procurement strategies are going through a rapid transformation. The upcoming trends indicate digital transformation for the procurement industry to ensure better progress post the pandemic era. The intent is clear; procurement industries are targeting reduced cost involvement by deducting manpower resources and focusing more on technologies like Artificial Intelligence and Blockchain. Still, in the testing phase, procurement organizations are targeting different technologies to ensure a better, faster, and smarter functioning procedure.
While procurement subcontractors admit that there is no crystal ball to play with, eyeing towards technological innovations certainly promises a whole lot of potential. The upcoming trends that have the potential to change the shape of the procurement industry are discussed below. Have a look at them closely:
The reduced supplier risk factor with the introduction of technology
When working in the procurement industry, a major point of concern is supplier risk. But with technological innovations, it can be changed for the better. With the implementation of advanced technological radar, organizations will have a better view of the suppliers and will certainly be able to analyze the data and the performance of suppliers accordingly. Once the right technology is integrated into the procurement domain, it will reduce the risk of supplier tracking while ensuring better resource management. Organizations will enjoy a nearly 360-degree view of the suppliers through better and easier access to data, be it the internal ones, external sources, or those from the market.
Better responsibility for the machines
The automation process will happen since machines will be able to curate and clean the data on their own. It will be a much convincing and faster way to identify data and leverage the process outcomes accordingly. Machines will act as sourcing agents to maintain data while ensuring the authenticity of data through different algorithmic scales and equations. And then, the introduction of AI-based systems will make it easy to update data and cleanse the old ones for the best benefits.
The concept of the Touchless procurement process will gain prominence
The Covid-19 pandemic has introduced a new way to interact and operate: the TOUCHLESS way. The concept of touchless procurement is the new norm and it will stay that way in the days to come. Digital data processing and accessing will be the way to go to handle procurement. It will be used for real-time tracking as well as to monitor the outcomes. The approach will gain precedence through an access loop around the assets. The asset-intensive organizations will find this approach beneficial. They stand a high chance to link the data across enterprises and get connected to the suppliers. So naturally, this approach will enable touchless procurement which will be the new norm for the years to follow.
The significant positive impact to the strategic implementation for an organization
It will certainly be beneficial for organizations to introduce AI-based procurement procedures. This will play a significant impact on an organization’s strategic development process. Procurement subcontractors will find the entire process beneficial since all the leading functions related to procurement will play an integral role in influencing the business strategies, competitive advantage, and growth agenda. These contractors will hence, start to shift their focus from cost leadership to supply certainty, agility, and introduction of innovative measures.
Focusing more on agility and flexibility
Focusing on flexible approaches is the need of the hour. With the economic condition going through an uncertainty pattern, the key approach towards sustainability is through flexibility. The procurement sector must focus on flexible approaches and adopt the changes accordingly. It will allow them to survive the scenario and move forward during this critical moment. The pandemic is still not eliminated. It keeps haunting the global economy. Henceforth, the concept of GIG Economy on an as-per-the-need basis seems to bring in fruitful results. Knowledge is the key to survival. But how well the knowledge is to be implemented according to the change in the scenario will decide the fate of a procurement organization.
The conditions of global supply chains are threatening. They may face threats in terms of shipments and availability of components and raw materials. Henceforth, it is recommended to follow an agile process. Some eminent leaders of the industry advise shifting and re-shoring the sourcing to regional or local supplies. Focusing on local sourcing agents is a beneficial ploy during the time of the pandemic. It helps in a better understanding of the market condition and also keeps the supplies closer to distribution and manufacturing segments.
The world is going through a crisis moment. This is the time when we must show resilience and take the pledge to fight back. The pandemic has affected the procurement industry severely. But that does not mean the journey stops here. Businesses need to fight back and make an effort to turn around. The above trends can prove to be beneficial for supply chains and procurement industries to improve the business to a certain extent. Why not give them a try!