Procurement is the business of acquiring goods, supply chains and negotiating deals in order to keep a company running smoothly. It can also refer to the process of streamlining and cost management within a business. It is widely agreed that a solid procurement team will go a long way to improving your businesses efficiency. Whether this be a hired specialist team or one belonging to the company – it makes no difference. The procurement team are there to help make your working world easier, more productive and more rewarding. There aren’t many reasons not to have a good team evaluate your company occasionally. Here are the top five trends in procurement process to watch!
E-Procurement Continues to Rise
E-Procurement is similar to regular procurement processes but refers to all of these transactions that have been made online. You can also now buy an E-Procurement software that will run your business model through it and suggest where improvements could be made and where costs can be cut. With more and more governments setting up their own online marketplaces and with access to the web becoming more widespread with every passing day- the current trend sees most B2B transactions happening online. This is not a trend set to fail any time soon – so if you aren’t on the bandwagon yet, it is time to hop on!
Decentralised Buying is Declining
With more power being given to local branches and less authority given to one centralised department we can expect companies overall spending to go down. As this trend continues we can also watch out for further streamlining of the procurement process, bringing it to the forefront and making it something that staff are well versed in, on an individual level.
Business and Procurement Process Transparency is Increasing
On a day to day basis we see more websites, more apps and more ways to access the digital world around us. Where this means, companies might benefit from social media and a little free advertising, the flip side is that the barriers between company and consumers are breaking down. Social media presents either a problem or an opportunity, depending on your point of view. Most companies are currently aiming for new levels of transparency to keep up with the trend.
Sustainability has Become a Big Business
Buying from sustainable sources is becoming more and more necessary as we use up the planet’s natural resources. There has been a rise in the number of businesses who advertise sustainability on their packaging and who may even pay a little extra to their sources for the privilege. It is not only a good business sense; it is also a good planet sense. As the eco-friendly trend shows no signs of stopping, neither should we.
Ethics are Coming into Play
Ethically speaking our world is becoming sensitive. A wise businessman is perfectly aware of this trend and is already taking steps to include diversity across his company. This is a trend that borders into a cultural belief system and, as such, shows no signs of fading quickly. Businesses should be aware of their ethical responsibilities and should move to act accordingly. If they don’t, there is a high chance the public will outcry, and there are some types of publicity that one simply does not need.
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