Deloitte research shows that the purchasing sector is even more complex, entering a new decade facing new challenges and facing several strategic opportunities within the company and also throughout the supply chain.
With global supply chains, the risk of disruptions due to political or economic issues is just one of the challenges that the purchasing sector will face. However, there are practices and technologies that help generate value, reduce risks and meet goals, from digital transformation, related to greater visibility of the supply chain, to adequate training for professionals.
Complex challenges
This same research raised four challenges that companies need to address in 2020:
1. External challenge
This means addressing everything that is outside the company and with which the purchasing department needs to interact. If in recent years the sector has seen a series of external risk factors emerge – trade war between China and the United States and fears regarding a possible economic recession –, to reduce these risks, the sector still needs to develop contingency plans that help identify opportunities to restructure the supply chain.
2. Internal challenge
In recent years, the purchasing department has struggled to become an effective and valuable business partner for internal customers. However, Deloitte reports that only 26% of companies rate the department as an excellent partner. Therefore, purchasing managers need to continue investing in process automation and focus on aligning the department with other departments and also on training professionals.
3. Talent Challenge
Acquiring and retaining talent is nothing new for the industry, and few managers believe that their teams have the skills needed to meet purchasing and company goals. Purchasing departments need to optimize their recruitment, onboarding, and talent management processes to find talent with the skills needed to meet current needs and those that will arise in the coming years.
4. Digital challenge
People are more digital, companies are more digital, the world is more digital, and the procurement sector needs to be digitalized. Creating a digital strategy is essential to support the goals and needs of the company as a whole.
Furthermore, the purchasing department needs to be prepared for a new ethical and responsible approach. To do so, it must increase visibility and collaboration throughout the supply chain, whether through technology or other means. The purchasing department cannot continue to be vulnerable to the various risk factors that exist simply because it does not understand how suppliers relate to their suppliers.
Challenges will always be present in companies and new ones will arise from time to time. Is your company prepared for them? Contact us and learn about our solutions of data strategy that can help you overcome these challenges.
