With 2015 planning right around the corner, procurement leaders need to take a look at their processes and goals to determine how they can best showcase their value to their organisation.
Expectations for procurement are changing rapidly and now is the time to stand up and take charge. In order to help with your planning, here is a list of what I predict will be the top five challenges for procurement to tackle this year.
- An emphasis on organisational alignment
2. Changing inventory strategies
With the rise of multi-channel retailing, supply chain simplification, shrinking product life cycles and new technology, procurement leaders realise the importance of tackling inventory management in a holistic manner.
3. Real-time performance management
Web based supply chain software will continue to be integral in purchasing. These solutions allow procurement leaders to improve relationships with sourcing partners and gain visibility into their supplier base — ultimately helping procurement save money and time.
4. Emerging markets will be a source of growth
Emerging markets, such as Asia Pacific and Latin America, have been deemed as primary business growth areas for manufacturing and logistics. In 2015, supply chain executives will capitalise on these emerging markets, which will influence many aspects of the supply chain, including product design, pricing, and logistics.
5. Suppliers will be trusted partners
Rather than just going through the motions of an RFP, procurement will start to evaluate suppliers as potential partners, asking them how they’d solve a specific problem. Doing so will provide procurement with more information than just product specs, they’ll be able to see their suppliers creativity and problem-solving aptitude – key characteristics of a strategic partner.