Top 10 key procurement issues facing the industry in 2020
Achieving procurement excellence in a world under constant digital disruption brings internal and external challenges, we look at the top 10 issues of 2020.
Cost related objectives is no new addition to the list of priorities in a procurement strategy. However, increased internal and external demands are requiring procurement organisations to deliver increased value in new ways to become more agile and adaptable.
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10 | Improving performance measurement capabilities
When it comes to capturing the multiple value streams of procurement, improving company performance measurement capabilities as well as communicating with various stakeholders is vital to combat this issue.
9 | Obtaining higher value via category management
In order to strengthen relationships with business partners and deliver higher value to customers, companies need to leverage new value streams, something which category management can be a resource for.
8 | Improving agility
Becoming agile is something that is increasing in importance within procurement, in order to increase the industries adaptability to digital disruption. This is something that needs to be developed at the functional level.
7 | Aligning talent and skills with business needs
As digital disruption and fast paced innovation increases, organisations are beginning to understand the need for high quality talent. To achieve this, procurement leaders should look to leverage cross-training and investing in developing talent.
6 | Improving analytical and reporting capabilities
In this new digital era, the potential of analytics is increasing fast. Procurement organisations should look to leverage this potential by prioritising external data, optimising dashboards and adopting predictive analytics.
5 | Increasing spend influence with strategic sourcing
One of the top measurements of procurement performance, spend influence and strategic sourcing is driving reduced purchasing costs, improved quality and better strategic outcomes for organisations.
4 | Modernising application platforms
For a company looking to increase and benefit from agility, customer centric processes and cost efficiencies, modernising business platforms is a key driver in achieving these benefits.
3 | Becoming a trusted advisor
To benefit from early involvement and greater spend management with business partners, it is key for companies to understand the value in building strong relationships with partners.
2 | Reducing purchase costs
For procurement organisations reducing purchase costs has constantly been a top priority, which indicates that providing core services is a key requirement for successful procurement operations.
1 | Improving cost efficiency
The number one issue for procurement organisations as we make our way further into 2020. In order to reduce total costs, the top organisations will leverage all of the above to optimise its services in order to improve its cost efficiencies.