Going through one economic crisis after another, the Purchasing department faced several transformations that required an even greater search for cost reduction. Despite this, the department, through innovative technological tools, managed to reinvent itself and began to work strategically, focused on improving financial performance, managing risks efficiently and ensuring a robust supply chain.
Purchasing professionals need to be prepared to make significant changes to their business and to experiment with new ways of doing their work, always seeking transparency and better purchasing management. Thus, some trends stand out:
1. Relationship with suppliers
This may not be news, after all, maintaining a good relationship with suppliers is part of everyday purchasing, but technological supplier management solutions increase visibility throughout the supply chain, help assess risks and increase loyalty.
2. Data analysis
Artificial intelligence (AI), big data, predictive analytics, strategic sourcing, cloud, robotic process automation (RPA). There are several technologies available to the procurement department, and they all depend on reliable data to be effective. With this information, procurement professionals can analyze supplier performance, award contracts based on value rather than lowest cost, optimize logistics, and more.
3. Risk reduction
Risk mitigation is essential for the Procurement department – just look at the crisis caused by COVID-19 – and this requires professionals in the department to be familiar with risk management practices. According to Deloitte, supply assurance, financial delivery, regulations and price volatility are among the biggest risks for the department. This risk assessment includes customers, suppliers and third parties such as insurers, carriers, etc.
4. Sustainability
As they need to add more value to the business, purchasing professionals can no longer focus solely on reducing costs, but must create economic and social value. As new generations begin to take on leadership roles, purchasing departments need to adapt to a new consumer – whether B2B or B2C – who demand a more solid social responsibility and sustainability strategy.
5. Deliver more value
Yes, talking about this may sound repetitive, but the Procurement department needs to generate business value and drive cost reduction in an intelligent way. The Procurement function is more sophisticated and needs to use innovative technologies to show that the department can contribute more comprehensively to the company's strategic objectives.
The Purchasing department plays an increasingly important role in companies. Although it is not seen as strategic by many companies, as it begins to conduct business more intelligently, it becomes a strategic arm for the company's growth.
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