As we near the end of 2017 there are a couple of procurement trends that have stood out above the rest. What’s obvious is that technology is changing the way IT professionals do business and it will continue to in 2018. So, what advanced procurement in 2017 and how will we keep progressing in 2018?
Big data. It doesn’t get much buzzier than that…but this year we’ve seen that there is big value in big data. Not only has data become more plentiful and easily accessible but it is also high quality and extremely valuable in terms of decision making. As technology continues to progress, big data and artificial intelligence will improve the speed and efficiency of the procurement department.
Technology adoption. Procurement departments are integrating sourcing, purchasing and procurement technology. This centralizes processes and allows more departments to utilize the data generated by the procurement function. Utilizing technology makes everyone’s job easier by keeping procedures streamlined.
Greater transparency. One advancement that we hope isn’t a trend is transparency; due to the accessibility of data and social media, companies are increasingly being held accountable. With all this information at our fingertips, not being transparent about your product, pricing, practices and expectations can you hurt you as both a buyer and a seller.
Tracking tail spend. Procurement departments often have more incentive to focus on the large, multi-year contracts but due to this mentality almost 20% of companies’ spend can go un-tracked. By improving data visibility and analysis of the smaller purchases, procurement can discover some of the less obvious cost-savings opportunities and boost profits in the long run.
Centralized purchasing. As more companies create procurement departments to improve their spend tracking, decisions and profits, decentralized purchasing will continue to decline. Centralized purchasing decreases risk, prevents duplication of efforts and allows organizations to share knowledge.