5 Trends Impacting Procurement Professionals in 2016

By Susan Avery

December 17, 2015 at 2:42 PM

Readers always ask what the next “big thing” to impact their job – and industry, at large – will be. New trends and technologies are popping up every day in this digital age, so the ability to quickly adapt is critical. 

The key here is flexibility – the ability to step outside the boundaries of your job description and get involved with different business units, skill sets and teams. Every unit needs to work together and operate cohesively to produce a well-oiled, effective machine. This helps keep employees, partners and customers happy, and pushes your company’s profits upwards. 

We spoke with experts from various industries tied to procurement to get their take on the most important trends for 2016. Here are the five trends procurement professionals should keep in mind as 2016 approaches: 

Millennials are here, promoting the rise of customer experience and mobile empowerment. 

Millennials are changing the e-commerce landscape and the 2016 buyer will increasingly become the mobile millennial, says Mark Johnson, CEO of Four51. The Economist reported millennials occupy 34% of business positions in 2015 compared to 29% for baby boomers. They’ve come to expect the ability to work from anywhere, anytime, through any channel (desktop, tablet, mobile). 

Almost half of all business-to-business online researchers are millennials and 42% of B2B buyers use a mobile device at some point during the purchase process (Think With Google). Forrester’s April 2015 B2B eCommerce Forecast showed 74% of buyers already research at least half of their work purchases online. We’ll see this increase in 2016 and companies need to focus on improving communication with this new generation of B2B purchasers. The buyer and supplier will experience great benefits as well as the overall economy. Those looking to retain millennial talent need to ensure their company can meet their expectations when it comes to flexibility and the latest technology. 

Strategic “self-service” will become the new “full-service.”

The term “always on” comes into play here. Our society goes back and forth on whether this mentality will improve or disrupt productivity, but Johnson continues to see businesses reinventing themselves to become a better partner who is easy to communicate with. 

It’s important to note this can drive cost reduction of order management and better customer support – aka happy customers and stakeholders, and positive spreadsheets. Forrester reported B2B companies can reduce client service costs by as much as 90% by moving to a self-serve e-commerce environment. 

Cloud to improve partner collaboration in the supply chain.

Providing full service isn’t the only improvement needed when it comes to communication in the procurement process. Kurt Cavano, Founder and Chief Strategy Officer of GT Nexus, knows that the key to success is deeper visibility and stronger communication between partners and suppliers. A cloud-based network delivers buyer-supplier collaboration to streamline ordering processes, enables inbound-to-plant visibility and provides a single view to manage global transportation. If adjustments need to be made along the way, it is now easier to do so and have full visibility as to where your shipments are, keeping customers and partners happy every step of the way. 

Data breaches will change the terms of supplier contracts.

Research suggests 78% of organizations have experienced a data breach within the past two years. Procurement departments are far from immune to the immediate and long-lasting effects of a breach. Specific verbiage or complete omission of breach language within their thousands of contracts can have a devastating impact on the procurement department and the company as a whole. 

Protect your company by focusing on this small, but critical, component, says Lloyd Alexander of Seal Software

Artificial Intelligence (AI) and procurement departments become new best friends.

Powerful AI through natural language processing (NLP) and machine learning drives automation, insight and efficiency in traditionally time- and labor-intensive procurement functions related to contract management, according to Alexander. Myriad drivers – supplier obligation compliance, KPI monitoring, event-driven contract requests and reviews, adherence to regulatory compliance changes, to name a few – demand adoption of this type of technology to maintain control in today’s 24/7, speed-of-the-internet pace. 

The topic of today’s always on, digital society is a common trend we continue to see across the board, and companies (and individuals) looking to get ahead should keep this top of mind. 

 


Tags: purchasing Supply chain management Procurement Technology sourcing
Category: News Article

Susan Avery

user_avatar

Susan Avery is Editor-in-Chief at My Purchasing Center. She writes articles, blogs and white papers and manages and creates other content for the online procurement and supply management publication. She produces and moderates roundtable discussions, podcasts, webcasts and video interviews. Susan has 30 years experience covering procurement and supply management for Purchasing magazine and Purchasing.com. 


Please add a comment

You must be logged in to leave a reply. Login »


Related Content

Thought Leadership and the Demise of Your Third-Party MRO Outsourcing Program: Part 4

George E. Krauter

When one defines third-party MRO (3PMRO) success, one assumes that fundamental operations are being executed and that expectations are being met (i.e., ROI goals are surpassed} Read More

Guidance for Addressing the New Talent Acquisition Challenge

Dennis Bouley

The US Labor Department reported in March of this year that there were 6.6 million job openings, a record high. Although most of us applaud these numbers Read More

Millennials in Supply Chain Management Seek Advancement and Development Opportunities

Marisa Brown

Millennials working in the supply chain management field don’t fit the mold that the older generation assumes for them. APQC’s recent study Read More


Supplier Profiles

Staples

Staples Advantage is the one supplier that offers all the business solutions you need, all with the expertise of a specialty vendor. Read More

Digi-Key

It started in 1972 with an idea, a new concept in distribution. Today, Digi-Key Corporation is one of the fastest-growing electronic component distributors in the World. The stimulus for this growth is Digi-Key's customer-centered business philosophy… Read More

Lunney Advisory Group

Lunney Advisory Group was founded in 2007. Our firm is not your typical consulting company. Some members of our firm are highly qualified and experienced industry executives/practitioners while others are full time or adjunct university professors.… Read More


Webcasts

What CEOs Expect Of Purchasing

Guest Contributor

Procurement and supply management leaders have a seat at the table, and management’s expectations are high. But what do CEOs really want, and is purchasing delivering on these expectations? This webcast looks at how procurement and supply management … Read More

Growing Purchasing Influence On Indirect Spending

Guest Contributor

At world-class companies, purchasing’s influence touches just about every area of spending. But, how exactly do procurement teams get to the point where other departments approach them for help with sourcing such indirect categories as human resource… Read More

Procurement-Finance Collaboration

Guest Contributor

Procurement & finance are two business functions which are often at loggerheads with each other. One reason for this is the lack of perception alignment on an important metric of procurement and finance performance - 'savings'. Read More