Inflation is a word that has been on the minds of every procurement team in 2021. We are seeing a sustained period of supply shortages and price volatility of the kind that most commercial professionals will not have experienced in their working lives. In one way or another, it is having an impact on virtually every business.
Sourcing leaders today operate within an intricate web of interconnected buyers and suppliers from around the globe. When awarding parts of a business, companies must weigh more than the cost of what they buy. Prospective suppliers have to be viewed through multiple lenses. Prioritizing cost savings alone may seem like a clear win for your bottom line, but it can lead to missed opportunities to capitalize on other forms of value that suppliers can extend.
LogicSource and Sourcing Industry Group recently conducted a joint procurement technology survey. The results revealed some consistent, yet alarming, trends in procurement spend analytics. In short, responses made it apparent that procurement organizations at-large have yet to solve their spend data quality challenges.
Three key findings from the survey indicate the market’s need for more expertise and ongoing data services as it relates to procurement spend analytics:
Twenty-five years ago, the internet was in its dial-up infancy, businesses still relied on fax machines and procurement was considered solely a back-office, cost-cutting function that controlled the organization’s purse strings.
Procurement Sentiment and Observations
During this pandemic, many organizational CEOs and Board members have become aware of and startled by the inefficiencies and bureaucracies in their Procurement organizations. C-suite executives discovered their organizations were in predicaments with deep and broad implications none of us had previously fathomed. Most of us never imagined we’d need to find new suppliers, support, or transition from current ones to diversify for business continuity at the drop of a hat.
To understand long-term transformations in supply chain and procurement technology, supply chain professionals must be able to understand present trends so they can help shape future realities. Experts believe the following predictions are viable hypotheses that we should consider for 2030.
As the world gets to grips with a world health and humanitarian emergency resulting from the spread of coronavirus (COVID19), the knock-on economic effects also take effect. In an increasingly global economy, we are starting to see how fragile some just-in-time supply chains have become.
Imagine a world where all people thrive within the environmental boundaries of our planet. Picture a planet where the immediate threat of climate disaster has been avoided and where global businesses have evolved their business models to support a responsible and low-carbon economy.
Whilst is seems a bit far-fetched looking at today’s realities, we fundamentally believe this world vision is possible and millions of procurement professionals worldwide are mission-critical in making this come true.
How did you get into this field – was it purposeful or by accident?
In this episode of the Sourcing Industry Landscape, Dawn Tiura interviews Karen Gonzalez. Karen Gonzalez is the Chief Sales Officer at Guidant Global. Her career in staffing began with an unexpected start in recruiting 22 years ago, and her passion for acting as a problem solver for her clients has propelled her into her CSO role today.