{"id":3397,"date":"2015-02-18T00:14:26","date_gmt":"2015-02-18T00:14:26","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2015\/02\/18\/34-procurement-experts-predict-2015-trends\/"},"modified":"2021-07-14T08:06:20","modified_gmt":"2021-07-14T12:06:20","slug":"34-procurement-experts-predict-2015-trends","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/34-procurement-experts-predict-2015-trends\/","title":{"rendered":"34 Procurement Experts Predict 2015 Trends"},"content":{"rendered":"

The saying goes: \u201cThe only constant is change.\u201d Nowhere is that statement truer than in procurement!<\/p>\n

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If you\u2019re a procurement professional and you haven\u2019t adapted to new ways of carrying out your work, the world is passing you by. But it\u2019s not enough to try to get to where procurement is today. You must prepare for the future of these important business functions.<\/p>\n

We here at the Next Level Purchasing Association asked procurement experts\u00a0across the world their predictions and greatest challenges they expect to tackle in 2015. As expected, we received a rather diverse range of answers from the procurement experts\u00a0polled. Below are the thoughts of 34 procurement experts:<\/p>\n

Procurement Education<\/h2>\n

\u201cSocial Responsibility. Unlike any time before in history, today\u2019s business experts want to make as much of a positive impact on the world as they want to make money for shareholders. Because buying decisions can direct money either towards or away from socially irresponsible activities, procurement departments are at the forefront of corporate social responsibility efforts. With the right focus, procurement departments can help end practices such as coerced and child labor, unsafe working conditions in developing countries, crimes against humanity by groups controlling certain minerals, animal welfare abuses, and so on.\u201d
\nCharles Dominick, SPSM3\u00ae<\/sup> \u00a0| \u00a0President and Chief Procurement Officer \u00a0| \u00a0Next Level Purchasing Association \u00a0| \u00a0@nextlevelpurch<\/strong><\/p>\n

\u201cLet\u2019s face it, it is a brand new game, with new rules requiring new skill sets that the older generation does not possess. \u00a0This isn\u2019t because they did not have the ability to acquire said skills. \u00a0The fact is that the role and value of procurement as defined by those outside of the profession, has changed dramatically. \u00a0It has evolved from being a functional job<\/em> to a strategic position<\/em>. \u00a0Or to put it another way, in the past, you did not require a 4.0 grade average from a prestigious university to become a \u201cbuyer\u201d. \u00a0Nor did you, early in your career, have to have experience in terms of dealing with a globalized supply base within the framework of a socially responsible mandate.\u201d
\nJon Hansen \u00a0| \u00a0Host \u00a0| \u00a0PI Window on Business \u00a0|\u00a0\u00a0@piblogger1<\/span><\/strong><\/p>\n

\u201cThere is a generational shift going on that has big implications for the supply chain industry. It\u2019s no secret that the sector is dominated by Baby Boomers, many of whom will be retiring in the next 10 years.\u00a0For the industry to maintain its strength we need to attract more Millennials to replace those who are leaving \u2013 and there are plenty of talented people to draw from. In fact, the U.S. Census Bureau projects that for the first time this year, the Millennial generation will outpace Baby Boomers \u2013 vying for the largest population.<\/p>\n

We need the \u201cbest of the best\u201d in this industry. Organizations\u2019 health and vitality\u2014indeed, the strength of our economy\u2014depend on having outstanding people in procurement and supply chain positions. Their work\u00a0 affects their companies\u2019 brands, competitive positioning, sales and overall financial performance. How else will we succeed if we don\u2019t have\u00a0talented Millennials to carry the profession forward? Part of the solution is educating Millennials about what the industry can offer them.\u201d
\nKristin Carty \u00a0| \u00a0Outreach Director \u00a0| \u00a0ThomasNet\u00a0 | \u00a0@ThomasNet<\/span><\/strong><\/p>\n

Procurement Technology<\/h2>\n

\u201cI would say the most important trend this year will be another step change in the use of procurement technology. \u00a0However as a recruiter I would say that the most important thing in our area is for procurement experts to get better at recruitment.<\/p>\n

Specifically in a market characterized by skills shortages in key areas, CPO\u2019s need to develop an effective talent attraction strategy. \u00a0Furthermore, they also need to retain their best people who will be targeted by head hunters for roles with other organizations.<\/p>\n

I would also say the biggest issue is the poor\/elongated recruitment processes and a very cost driven agenda when it comes to using recruiters. \u00a0Companies expect people to make all the effort. The companies who \u201cget\u201d talent attraction realize it\u2019s a 2-way process.\u201d
\nAndrew Daley \u00a0| \u00a0Founding Director \u00a0| \u00a0EdburyDaley \u00a0| \u00a0@ProcEdburyDaley<\/span><\/strong><\/p>\n

\u201cThe most important trend, from my view, is to be a better partner with the entire business operation.\u00a0 With rapid technological changes and globalization, the need to be nimble and understanding is paramount to success in procurement.\u00a0 We should have long progressed from \u201cbuying things\u201d to managing interactions, whether between suppliers and our operations or between our users and the goods and services they use.<\/p>\n

Another trend that supports that partnering, is education.\u00a0 We must educate our business partners on the value procurement brings.\u00a0 We do not simply RFx suppliers to death.\u00a0 We must drive make\/buy decisions, drive demand management, drive fit and function analysis \u2013 all of which are not typically thought of as \u201cprocurement\u201d functions.\u00a0 If we don\u2019t educate our business partners on these ideas, procurement sets its own countdown to elimination ticking.<\/p>\n

Last, a trend I am seeing desired by business expertship is the drive to compliance \u2013 spearheaded by Procurement.\u00a0 If we allow our spend to re-fragment through poorly coordinated or even well-meaning use of non-approved suppliers, all leverage internal and external evaporates.\u00a0 It is incumbent on us to partner with our Finance teams to delve into the ERP\/MRP systems and discover instances of \u201cleakage\u201d, plug those holes, and develop an understanding with the business to prevent future occurrences.\u201d
\nMichael McGann \u00a0| \u00a0Head of Global Procurement \u00a0| \u00a0Matthews International<\/strong><\/p>\n

\u201cI have actually reached out to a couple procurement software teams with the exact question myself to help forge our direction and keep up with best practices. \u00a0I will say that for City National Bank (CNB) it will be to upgrade to a more efficient integrated P2P system.\u201d
\nGene Galvin \u00a0| \u00a0Vice President of Procurement \u00a0| \u00a0City National Bank \u00a0| \u00a0@CityNational<\/span><\/strong><\/p><\/blockquote>\n

\u201cThere is a step-change afoot in the procurement software space. Sourcing and procurement applications will more closely support to the way procurement professionals work in the real world. That means unified platforms where all functionality is native. At the same time, cloud economics will continue to gain ground. Factor in the integration of mobile and touch devices, improved analytics, better design and better interfaces to the mix \u2013 we\u2019ll the growing sophistication and intelligence of procurement technology will have a big impact on the productivity of enterprise procurement organizations worldwide.\u201d
\nAl Girardi \u00a0| \u00a0Global Vice President of Marketing & Analyst Relations \u00a0| \u00a0GEP Worldwide\u00a0 | \u00a0@GEP_tweets<\/span><\/strong><\/p>\n

The most important procurement trend for 2015 remains the adoption of procurement software, in particular for small- and medium-sized businesses. Full disclosure: I work for a company that develops a procurement solution geared towards small- and medium-sized businesses. So, I\u2019m biased. But this is more than simple company promotion \u2013 the adoption of procurement technology is the catalyst to improving any purchasing function. That\u2019s because procurement software has can have a dramatic effect on supplier management, company budgets an even in-house environmental goals. Truly, choosing an e-procurement solution can help any business improve on the critical procurement trends we\u2019ve been discussing over the past few years. Why focus on just one trend, or improving in one area, when you can tackle multiple areas?
\nSean Kolenko \u00a0| \u00a0Business Development \u00a0| \u00a0Procurify \u00a0| \u00a0@Procurify<\/strong><\/p>\n

\u201cBig data is the most important trend for procurement in 2015. Trying to capture this data has proved challenging so far but get this right..and there will be a lot of benefits on offer \u2013 a more optimized supply chain, the ability to make better decisions etc.\u201d
\nTim Burt \u00a0| \u00a0Deputy Editor \u00a0| \u00a0Procurement Leaders\u00a0Magazine \u00a0| \u00a0@tburt85<\/strong><\/p><\/blockquote>\n

\u201cI see the evolution of Big Data as the next big thing.\u00a0\u00a0 Specifically visualization of Contract Data, Spend Data, and Savings.\u201d
\nChad Johnson \u00a0| \u00a0Vice President \u2013 Procurement Services \u00a0| \u00a0McKesson Corporation \u00a0| \u00a0@McKesson<\/strong><\/p>\n

\u201cSupply chain data will be big in 2015. Procurement professionals can now get transaction level spend visibility to make better decisions.\u201d
\nClaritum E-Procurement Solutions \u00a0| \u00a0@Claritum<\/span><\/strong><\/p>\n

Cyber. Especially regarding the US Cyber Command which looks to \u201cstreamline\u201d procurement.
\nKathleen A. Kenney | Senior Account Executive | Defense News | @defense_news<\/strong><\/p><\/blockquote>\n

Supplier Relationship Management<\/h2>\n

\u201cIn my opinion, the key word in the Procurement strategy of 2015, will be \u201cSupplier Relationship Management\u201d not only in terms of direct approach to the relationship with suppliers but also in terms of support that the technology can give to it especially in the following areas:<\/p>\n