Procurement: Back to the Future

This is something we’ll all have heard (or something similar, at least)… “Procurement is a support function obsessed with cost-cutting; it’s dull, monotonous and creates headaches for stakeholders” – keep this in mind as you read the article (if you don’t get bored and give up)!

Let’s face it, procurement has suffered reputationally – the lack of glamour and a perception that it’s a ‘back-office’ operation doesn’t just impact those already working in procurement, it’s also the primary reason that procurement remains enigmatic to the new generation entering the workforce. However, times are changing. We live in an evolving world, with an ever-changing business landscape driven by political, economic, social, environmental, and regulatory demands. These demands and complexities aren’t going away, in fact, they’ll continue to become increasingly complex – so what does the future of procurement look like?

It’s recognition!

Recognition that procurement is a strategic powerhouse, responsible for delivering so much more than cost savings…

• Navigating the complexities of sourcing goods and services from a global market, optimising costs, and ensuring access to diverse suppliers.
• Leveraging digital tools for efficient supplier discovery, contract management, and data-driven (including, in the future, AI) decision-making.
• Addressing the need to anticipate and manage supply chain disruptions, ensuring continuity even during unforeseen events.
• Integrating environmental and social considerations, aligning with the growing demand for responsible and ethical sourcing of goods and services.
• Seeking out innovative suppliers and fostering collaboration, driving business growth through novel ideas and technologies.
• Using data analytics (including AI) to identify trends, risks, and opportunities, leading to informed strategic choices.
• Enhancing competitiveness by optimising costs, quality, and delivery times, providing an edge in the market.
• Ensuring adherence to evolving regulations and standards in an increasingly complex business environment.

As procurement professionals, we play a pivotal role in shifting perceptions by continuing to deliver and making procurement a business function that stakeholders want to use. If we do this right, we’ll all hear (or something similar, at least)… “Procurement is a critical business function obsessed with problem solving; it’s exciting, dynamic and solves headaches for stakeholders”.

The future is bright, the future is procurement!