Procurement is a viable strategy for most organizations to reduce their production costs. If the production costs are lowered, the prices of goods and services will also be lowered. This is bound to intrigue a large number of potential customers. However, the procurement arena is undergoing rapid transformations in recent times. With the advent of digital technologies, marketers are channelizing their sourcing processes to their benefits. Standing at this point, there are several procurement trends to watch out for. With the assistance of sourcing consultants, marketers are formulating their procurement strategies conforming to the latest trends.
What are the Major Procurement Trends in 2019?
The procurement trends in 2019 are discussed as follows:
Having a ‘digital strategy’:
With the emergence of digital technologies and its positive impact on the procurement arena, marketers are trying to formulate an innovative digital strategy. Planning a strategy is not enough and organizations have to implement those strategies effectively. This will help marketers to gain an upper hand in the perfectly competitive market environment of today. Cognitive procurement technologies like Big Data Analytics, Machine Learning, Natural Language Processing, Artificial Intelligence, and Robotic Automation are the call of the day. These technologies are very likely to dominate the sourcing scenario over the next 3-5 years.
Developing talent pool to embrace new technologies:
A significant portion of the workforce in underdeveloped and developing nations are not aware of the latest digital technologies. The factory owners are focusing to enhance the skill set of workers through various talent programs. Marketers try to develop a holistic supply chain while facilitating enterprise-wide cost reductions. Modern-day organizations are relying extensively on new technologies like AI, Robotic Automation, and Blockchain. India has emerged as a top sourcing destination in recent times. The India procurement freelancers are making the marketers aware of the political and economic scenario of India.
Considering suppliers beyond price:
Modern-day marketers focus to collaborate with suppliers rather than pondering upon their pricing strategy. Suppliers are an integral component of any supply chain. They play a great hand in constructing the backbone of procurement. This increased transparency is proving a boon to both suppliers and marketers. It also accelerates healthy competition between the suppliers.
Risk management:
The global economies are adopting all necessary measures to be prepared for the unexpected. The procurement operations of organizations also focus on minimizing the risks in every aspect of a business. Marketers are not aware of the economic and political situation that can prevail in the forthcoming days relating to a specific sourcing destination. Marketers should take help from sourcing consultants in this regard.
Focus on indirect spending:
New-age procurement functions prioritize on indirect spending more than anything else. Indirect spending adheres to the 80/20 rule. It comprises 80% of the suppliers spent and 20% of the organization spent. Organizations are successful in reaping the opportunities relating to dynamic discounting, budget accuracy, and supply chain visibility owing to the automated financial solutions.
The above-mentioned procurement trends are very likely to continue in the forthcoming years. The India procurement freelancers assist marketers in times of conducting India procurement operations. If you want to give the productivity levels of your organization an added dimension, adhere to the procurement trends under all circumstances.