The New Year is here already, after the holiday season filled with lots of giving and sharing with employees, colleagues, friends and loved ones, it’s now time to implement new spending strategies to help you make the most of your 2017 budget. If your company is planning to up the ante on event spending next year, they need to be aware what procurement professionals are looking out for and be better prepared on how make the most out of its 2017 procurement teams.
It’s no longer news that procurement teams fuel the profitability and growth of some the world’s most successful companies, from aligning procurement’s deliverables with top business goals to understanding exactly what needs to change in procurement to drive financial results, there are several habits that organisations can establish to encourage effective procurement practices that result in value generation for the company as a whole.
Some of the Industry trends that procurement professionals tend to be leaning toward in the New Year include:
- The power of relationships
The ability to build strong relationships with suppliers, clients and stakeholders can contribute to success within service delivery, recruitment and the list goes on.
Too often we see organisations fail to manage their contracts and suppliers. An effective supplier management framework that appropriately aligns risk, effort and reward is a key enabler of ongoing sustainable value creation. The framework needs to include segmentation (i.e., strategic, operational and tactical), performance management framework(s) and a clear articulation of organisational accountability and responsibility. Procurement professionals should be looking to do more in this regard in order to provide a more personal and tailored approach towards procurement in 2017
- Online Platforms
A growing amount of procurement professionals are tapping into online platforms to help build these global relationships. Procurement professionals can leverage what’s happening in retail-related user experience to build commercial business cases to invest internally in great systems. Systems that will improve productivity and allow organisations to capture data and move from spend analysis to predictive procurement. Platforms that are cost effective and allows for easier data capture at point of purchase for procurement professionals. These niche platforms offer similar functions to a social network but also much more
So what are these online platforms? They aren’t just the usual culprits of Facebook, Twitter and LinkedIn. Now there’s a new wave of social media which is tailored to professionals in specific industries – the niche online business network. As for the procurement industry, some of these platforms include; Procurious, Salesforce, Amazon, SAP e.t.c. Procurement professionals should seek to delve deeper into these platforms to see how best they can further build upon existing successes recorded.
- Global networking
It’s no secret the logistics, procurement and supply chain profession is global in nature and these niche networks allow procurers, buyers and suppliers to network with people from all corners of the globe. The online space is no doubt a key channel for establishing business relationships with professionals from some of the world’s largest economies. With functions such as networking capabilities, industry specific news and discussion forums, these platforms create focused global communities. They provide opportunities for members to converse, network and share knowledge with like-minded peers across the globe.
- Tailored learning
Niche online networks are also hubs of knowledge which can be useful when fostering relationships with several stakeholders. For example, if procurement professionals want to do business in new locations or with a new supplier, they’ll need to understand their background, the market they play in and local industry issues. Sites and platforms should foster discussions groups which can help one learn about another culture or industry’s way of doing business before entering the market.
The value that the an efficient and effective procurement department brings to an organisation are huge not just in cost savings but also in terms of long term profitability of the business and also in promoting sustainability business practises and majority of businesses are beginning to establish and encourage habits that can drive these benefits. While the outcome of alignment and transformation projects are different for every organisation, the end result creates a clear path for procurement to drive financial results, earn more internal budget and resources, and demonstrate to key stakeholders the immense value and critical nature of their program. Procurement professionals are constantly challenged to provide the latest innovations that are truly integrated, mobile and social-enabled in order to deliver productivity gains and raise employee engagement and compliance while leading to better supplier management and auditing.