Procurement Changes and their Consequences
Updated: Oct 25, 2021
The world of procurement is always changing and evolving. For example, we are not focused more on sourcing strategies based on facts and research, rather than just going with our gut instincts. This hasn’t just changed the way we do business over the years; it has changed our overall philosophy on procurement. Current trends are to think about how it affects the entire company’s business objective, rather than focusing on one project at a time.
Advancements in technology
Because of advancements in technology, procurement departments around the world are becoming more modern and finding more efficient ways to operate. Outsourcing is a great example, as these activities have helped third parties grow and allow teams to perform excellently. While entire teams cannot be outsourced, they can benefit from having a reduced workload.
Teams need to be well organized and roles need to be defined. Most procurement departments have several different positions. These roles help control the company’s resources and venders. Typical roles may include supervisors, managers or people monitoring individual activities or companies.
Relationship to vendors
Having a good relationship with your vendors is also increasingly important. You need to have a strategic partnership where both parties benefit from working together. This helps ensure that both parties have each other in mind when major decisions are made, allowing you to have an improved supply chain.
Most procurement teams also need to work more as “innovation teams.” Team members should strive to find the latest innovations within the industry and put them to good use, whether they be new technology or finding better ways to work. They should also work with internal stakeholders to identify and develop their supplier base. The stakeholders should then ensure that the team is constantly working on maintaining the supplier relationship and introducing them to new innovations in the workplace. This will set you apart from others in your industry and will encourage suppliers to work with you over the competition.