Top five procurement technology trends. As we come to the final weeks of 2020, we take a closer look at the top 10 trends emerging in procurement operations for 2021 , outlined by EY.. For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital.. In 2019, more focus would be given in improving work synergies with suppliers. var notice = document.getElementById("cptch_time_limit_notice_59"); Moreover, organizations are always struggling with internal risks arising due to lack of transparency. It encourages better efficiency of tasks, accessibility of goods and services, and sustainability of purchasing decisions. Focus on indirect spending has always been on the radar of procurement function though recently, more and more organizations are readily putting efforts to control it. What we recommend is starting small. Your customers should be convinced they are getting the best price and user experience in the world. Here are the top trends that will shape procurement even further in 2018: Increased automation and agility – Despite the booming P2P technology market, we’re still surprised at the sheer number of businesses that use Excel to manage purchasing. Collaboration with suppliers remains a critical approach for all these years. AI in procurement. As procurement is gaining more strategic importance within an organization, the expectations from this function are also increasing. Customers are more likely to do business with a company if it offers personalized experiences. Some other trends like global benchmarking, Global sourcing, Supplier Relationship Management, supplier quality & business capability assessment, improvement/development and management would further help in completing the sequence. Are you excited to find out to get more insights and opinions on current events impacting procurement and supply chain in 2020? Procurement teams will design and deliver intelligent bots to complete most run-of-the-mill procurement tasks with minimal human intervention. All of them have the same goal of delivering more long term savings. As per the whitepaper by Zycus, “Ensuring Efficient Supplier Risk Management with Supply Chain Transparency,” only 65% of the procurement leaders have little or no visibility in their supply chain. = Here are some key areas in which technologies are helping organizations increase cost-efficiency while improving customer satisfaction in the procurement process: 1. It is used by thousands of organization owners, the procurement software application of which was estimated to bring 5.59 billion U.S. dollars in total revenue in 2020. Procurement leaders have time and again agreed change management being the biggest roadblocks in achieving the outlined procurement goals. Nicely captured all the trends which are very important for future of procurement. As the whole world adopts digital technologies, the procurement trends slowly shift towards cyber security more than physical security. As per a Hackett report, which surveyed 180 large companies, merely 32% of executives have implemented a digital strategy. These platforms usually include a combination of spend analytics, e-Sourcing, contract management, eProcurement and e-wallet (e-Catalogs, e-Invoicing). As per the survey, 51% of the procurement leaders believe their teams do not have sufficient capabilities to deliver on the digital procurement strategy. Yet, the trickiest part is to guess which high-tech tool to adapt. The procurement consultants will exclusively look for the recent trends in technology that will be brought to the world some years later from now, and those leading procurement functions will become the sole part of an organization’s value stream. The procurement department is no exception. Required fields are marked *. They should make cognitive and conative components their main objectives. More than two-thirds of companies now compete primarily on the basis of customer experience. They need to invest in the right infrastructure, processes, and resources with a vision that aligns with the organization’s objectives in the long term. The procurement function has to move from delivering cost savings to providing a strategic edge to the organization. Bridget McCrea. At first, it sounds very vague but let us bring more clarity to it. Very good share. AI that can uncover value through spend analysis, blockchain-based supply chain financing, and chatbots answering procurement queries… with technology like this at our fingertips, it’s an exciting time to be in procurement. In 2018, we saw organizations finally moving to adapt to cognitive procurement technologies such as Big Data Analytics, Machine Learning, Natural Language Processing, Artificial Intelligence, and Robotic Process Automation. Constant change is vital to keep every business up and running. Here’s a closer look at these trends and how they will impact procurement: 1. Let’s look at three technology trends in procurement that are emerging (or accelerating) in 2020. NTT DATA Saved $125 Million With SAP Ariba. With the procurement transformation growing itself at the light speed we can also notice top-performing procurement functions changes. Sievo’s jazzy little book titled AI in Procurement gives an excellent snapshot of where AI in procurement is now, and where it’s headed in the future. The world of procurement has undergone tremendous changes from the past couple of years. ); Cloud computing and SaaS products are used to support many business operations and procurement is no different. … The current times demand procurement to deliver much more than just savings. From Brexit to trade wars (the US imposing tariff sanctions on China) to fluctuating oil prices, major world economies are continuously thriving to be prepared for the unexpected. With advanced technology and the changing landscape of supplier management, the procurement function has shown the tremendous scope of improving the relationship with suppliers. Keep on reading. This transparency will not only support the suppliers to feel empowered but will also promote healthy competition between all the suppliers eventually benefiting the organization. Time limit is exhausted. Your email address will not be published. The new Epsilon survey indicates pretty much the same but in other words. Suppliers will have visibility of all the steps in the procurement cycle to help in getting the best pricing and reducing the risk quotient. Check reviews, go through ratings and feedback. })(120000); The solution will minimize the maverick spending by negotiating the critical contract terms well in advance suppliers and streamline the complete contracting process. Help us create Open Government Markets, bring 5.59 billion U.S. dollars in total revenue in 2020, differentiating the top performers from the laggards, the UN annually send funds to developing countries, Aldi’s suppliers’ attempts to turn down plastic, Using Machine Learning to Rapidly Identify a Global Ecosystem of Suppliers and Experts, Leveraging GovShop In Response to COVID-19: Update on Our Efforts. Being compliant with legal standards is just not enough these days. }, Harvard Business Review Analytic Services: Briefing paper An executive brief on best practices, continuous improvement strategies and upcoming game-changers in procurement automation. Bad Buying – What are the Root Causes in the Government Sector? Hinzu kommt, dass diese neuen Technologien die Strukturen der Supply Chains beeinflussen. Firstly, focus on essential technological services like custom writing reviews, task management programs, or data analytics software. AI will not remain just a procurement trend in 2019 with more and more organizations going to adopt in their processes. As 2020 marks the dawn of a new decade, SM rounds up the key procurement trends expected to emerge this year. Though organizations realize the importance of digital procurement, the question of the hour is ‘Have they been working towards it in the right direction?’ Hence, to realize the maximum value, organizations have to take the leap from manual to digital transformation with a proper strategy in place. Procurement “Trends facing Procurement Leaders in 2019” By. Der Einkauf ist wie kaum ein Unternehmensbereich von der Digitalisierung betroffen. No matter what new factors are emerging, you always need to integrate business into your own needs. So, it is a clear-cut indication that purchasing trends are closely interconnected with entrepreneurial goals. notice.style.display = "block"; The year 2019 will further enhance the usage of these technologies. By Hugo Britt | May 26, 2020. Preparing for 2020: Digital Procurement Trends in Review (Part 1) [PRO] Pierre Mitchell, Magnus Bergfors, Nick ... — Insights from service providers in the market who are increasingly themselves developing technology to create hybrid service offerings. Most organizations deploy several forms of core procurement technologies. It will require bringing in innovation and technology interference to save costs wherever necessary. This is in stark contrast to the fact that nearly 85% of them believe that digital transformation will fundamentally change the way they deliver services over the next 3-5 years. Strangely enough, many procurement managers are still neglecting common objectives, such as corporate social responsibility, supplier relationships, or risk mitigation. Key Trends in Procurement Technology 1. Delivering Value Beyond Savings; In our earlier blogs, we have always stressed the concept of Procurement beyond Savings. Studio can quickly scale up the procurement process, using multiple pre-packaged procurement bots as well as an easy-to-create bot store. To conclude, procurement seems to be quite confusing and complicated at first. Cyber-attacks such as Shadow Brokers, WannaCry, Petya, and Cloudbleed caused a lot of problems to the businesses all around the … Big Data Analytics, Machine Learning, Natural Language Processing, Artificial Intelligence, and Robotic Process Automation, Procurement professionals would need to acquire the critical skills to succeed in a digital world and to remain relevant in the market, reliable supplier performance evaluation plan in place, Ensuring Efficient Supplier Risk Management with Supply Chain Transparency, 5 Tips For Effective Source to contract During Cri [...], Three ways AP automation can help organizations re [...], Artificial intelligence for accounts payable: All [...]. Now, buyers cannot afford to communicate with suppliers just over the price. We don’t exclude the necessity of being responsive and agile, because it is a good way to maintain cross-functional cooperation and keep industry evolving. Thus, we are here today to get a grasp on cash flow, money volatility, spend management, and sourcing risk. For long, the rise of digital technologies and its positive impact on procurement has been projected as a procurement trend. And, obviously, the hectic expansion is about to grow even further. Dr. Abhijit Sarkar - December 24, 2018. In an era of increasing technology in our profession, we have actually become more thoughtful and understanding in our supplier relationships. Reliable supplier performance evaluation plan in place in procurement CPOs and their teams planning. Realize business innovation and technology interference to save costs wherever necessary the solution will minimize the maverick by! 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