The procurement world is gradually shifting, and industry players face an uphill task of balancing cost savings with achieving short-term and long-term business goals.
This challenging feat is exacerbated by the growing global economic, political, social, and environmental volatility and the ever-changing laws and regulatory standards meant to mitigate the challenges posed by this volatility.
Amidst these complexities, the procurement industry is undergoing a digital transformation. With 2024 on the horizon, businesses are already researching, forecasting, and planning for the potential trends that may emerge and affect their operations.
In this blog post, we’ll dive into the trends expected to influence the procurement industry in 2024 and explore how embracing them can lead to excellence.
Digital or e-procurement uses internet-based tools to facilitate procurement processes, including sourcing, ordering, invoicing, and payment. This has existed for a while and is expected to grow significantly in 2024.
In addition to its efficiency and cost-effectiveness, e-procurement has become increasingly popular due to growth in technology and the increasing rate of adoption among industry players.
E-procurement can significantly reduce transactional costs and streamline communication between suppliers and buyers. It can also enhance visibility into supplier performance, enable real-time tracking for orders, reduce errors caused by human intervention, and make the procurement processes more efficient.
Sustainability has become a buzzword across all industries due to the ever-increasing demand for a sustainable environment necessitated by climate change, global warming, floods, and related issues.
As companies become increasingly aware of the impact of their activities on the environment, there is a growing trend towards sustainable procurement. Sustainable procurement means that companies are concerned not only with profits, prices, meeting demands, and goods quality but also with their operation's social and environmental impact.
One way to ensure sustainable procurement is to source goods from environmentally friendly suppliers that use renewable energy, reduce waste, and minimise carbon emissions.
Working with suppliers who ensure fair wages and safe working conditions throughout the supply chain is vital for sustainable procurement.
Procurement Resilience Through Centralised System
Digitalisation of procurement processes has streamlined systems and improved supply chain resilience.
Through centralised systems, organisations have gained control over their systems, get jobs done within a shorter period, reduce human errors, improve agility, flexibility, and adaptability, and enhance visibility.
Modernised processes and advanced analytics equip organisations with the necessary tools to manage their supply chains effectively, even during challenges, by increasing resilience. As a result, industry players have achieved more with fewer resources without compromising on speed or precision.
Collaborative Supply Chains
One key trend in the supply chain industry expected to continue in 2024 is the collaboration between supply chain managers.
Business owners are beginning to acknowledge the benefits of building favourable and robust alliances to improve efficiency and reduce costs.
Collaborative supply chains involve sharing information, facilities, resources, ideas, and expertise between different organisations along the supply chain. Companies can collaborate through joint planning and forecasting, joint projects, and sharing data. Collaboration can also extend to partnerships with other stakeholders, such as logistics providers or competitors.
Use of Big Data in Procurement
With the emergence of technology, big data is being produced every day. This provides procurement experts with helpful tools for forecasting, planning, and making informed decisions. This trend is expected to continue into 2024.
Procurement professionals can leverage big data analytics to gain insights into market trends and supplier performance. Using big data in procurement enables organisations to identify loopholes in the supply chain, optimise inventory levels, and improve forecasting accuracy.
With the help of data analysis, companies can reduce costs by identifying areas where they can cut expenses and streamline operations.
However, skilled personnel with expertise in procurement and technology-driven decision-making are necessary to make big data helpful to businesses.
According to the predicted trends, procurement processes will become faster and more accurate. Additionally, there will be an increase in eco-friendly measures and alliances formed between industry players. Consider partnering with SARA PROCUREMENT SERVICES LIMITED to take advantage of these trends and benefit your business.
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