Although we’ve all settled into 2015, there’s still quite a ways to go before we reach 2016. Since there is a lot that can happen between now and the end of the year, many procurement professionals are looking at different trends which are expected to shape the landscape of procurement this year. If you’re curious about which factors may have the biggest impact on your profession, we’ve pulled together a list of trends that you should know about:
A Focus On Organizational Alignment
More companies are realizing that organizational alignment is an important part of staying ahead of the curve. Because many companies are looking for ways to create greater synergy among departments, it’s important for procurement to get on board with this change. That can mean having more direct communication with departments like IT or marketing. While it can take some time to adjust to this change, procurement departments that embrace this idea will actually stand to gain a lot.
Shifts in Inventory Strategies
Shrinking product life cycles and supply chain simplification are just a few examples of things that are driving the need for procurement to take a more holistic approach to managing inventory. As a result of this changing tide, it will be important for procurement departments to keep their eye on ways to accomplish goals like serving multiple channels with a single pool of inventory.
Managing Performance in Real-Time
Purchasing software is having a big impact on the way that procurement processes are carried out. One example of the impact of purchasing software is that more things are being done in real-time. Another impact is that lots of data is being collected. While most companies have no shortage of data available to analyze, translating that data into actionable information can be a challenge. Procurement departments that are able to figure out how to properly harness different types of data will have a significant competitive advantage.
The Influence of Emerging and International Markets
Apple recently announced that iPhone sales in China beat the United States for the first time. Not only are established international markets like China influencing what’s happening throughout procurement departments, but emerging markets like Latin America are also having a noticeable impact. Since these changing markets are impacting everything from logistics to pricing, it’s important for procurement departments to be on the lookout for new opportunities.
Building Stronger Relationships with Suppliers
Many businesses are really emphasizing the importance of building long-term relationships with suppliers. While that doesn’t mean procurement departments should avoid negotiating, it does mean that purchasing managers should look for ways to engage in win-win negotiations. By taking the initiative to really strengthen these relationships, procurement departments will be in the best position to weather any changing circumstances that may come up down the line.
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