Highly experienced in procurement, Rowe Advisory’s CEO, Jody Rowe, takes a look at her top 5 current procurement trends:
Be credible– it is becoming increasingly important to people that they deal with ethically-based suppliers, and that the origins and contents of products and services are ethically sourced. Pressures and demands around sustainability and transparency are growing, making transparent and sustainable procurement policies key.
Companies, and their clients, are becoming increasingly aware of Corporate Social Responsibility (CSR), and how organisations can play their part in contributing to sustainable development, the environment and human rights. When linked to procurement this is known as “Socially Responsible Procurement” (SRP) and it supports improved company performance and generates positive social impact. In today’s highly interconnected and social media focused world it is vital that companies get this right.
Be agile and flexible– in a world of increasingly volatile raw material costs a company’s procurement function needs to be agile. Procurement can be process heavy, so the ability to anticipate uncertainty, to be fast to react, and to adapt quickly and efficiently to external pressures and risks is vital.
Be aware of disruptors– disruptors may be political, i.e. Brexit; environmental, i.e. hurricanes and earthquakes, or major incidents and can cause low stock problems or unplanned outages. As procurement professionals we need to be aware of the world around us and how it can affect our global supply chains.
Be tech-savvy– new and emerging technologies such as Artificial Intelligence (AI) and Big Data are having a significant impact on procurement, and will do so for years to come. The automation of business processes and the ability to gather and tap into Big Data for predictive analysis means procurement professionals need to become more tech-savvy and embrace new ways of working. These technological advances will accelerate change and making informed business decisions utilising them will both deliver savings and improve customer satisfaction.
Be lean – traditionally people link “lean” with manufacturing, however “lean” is just as applicable to procurement! It’s common sense really, eliminating waste and non-added-value activities, whilst simplifying processes, adds value and who doesn’t want that?
Let Jody help navigate your organisation through the contracts and procurement landscape, Contact Jody Rowe