2020 is going to be a significant year historically. From the world-wide pandemic, to the mass social unrest, to one of the most unique elections the United States has ever seen; 2020 has certainly been hectic. Professionals, decision makers, and organizational leaders have had to rapidly adjust to the changing business landscape in order to survive – and even still, many have closed their doors. Procurement departments, and procurement software have also had to make shifts in order to adjust to the new normals of the marketplace.
Using the right combination of procurement softwares is an important aspect in building a comprehensive procurement strategy. Yet, understanding the impact of the global and domestic environment is integral to forming a procurement strategy that meets the current challenges. Additionally, procurement professionals should consider growth and scale in building their procurement departments. This helps companies prepare for growth on the front-end, instead of trying to play catch up on the back-end.
The Shifts of 2020
The world will hardly look the same after 2020 is done and over with. Some industries, like the mobile app industry, have been able to thrive through the entirety of the pandemic. Others, however, have been hit much harder.
At the onset of the pandemic, or maybe a few weeks in, the national and global supply chains began to deteriorate as the world tried to cope with COVID for the first time. Grocery store shelves were emptied, hungry customers lined up for what felt like miles. Since the worst of it, supply chains have evened off and steadied themselves significantly.
Global supply chains are very complex, and are influenced by a variety of different factors. One element that contributed to the rebound of the supply chains, however, were the advancements and shifts made in procurement teams, and procurement software.
Due to the rise in global-teams that work with one another from across the globe, some procurement teams were already beginning to work in a decentralized structure. Rather than a single brick-and-mortar office, teams are diverged, dynamic, and can operate almost independently.
This is beneficial for procurement team members because it allows the individual teams, regardless of location, function in their specific role.
Long gone are the days in which businesses operated outside of the moral-code to which everyday normal citizens adhere. With information being more accessible than ever before, consumers are more informed than they ever could have been previously.
In other words, consumers expect brands and big-companies to maintain a certain level of transparency. This transparency also relates to the way in which they conduct their business. CSR, or corporate social responsibility, is a vital aspect of building a positive brand image that consumers respect and trust.
Procurement departments have a big part to play when it comes to CSR. Responsibly sourcing products, goods, and services needs to be a priority in every procurement department.
Remote Work Culture
Similar to the above on how procurement teams have become more decentralized due to the global-workforce. 2020 has seen an astronomical increase in the amount of professionals working from home due to the COVID-19 pandemic.
As companies continue to make adjustments to their operations and their procurement processes, it’s only natural that both leadership and the workforce are pushing for work-from-home solutions during the ensuing chaos.
Working from home, like anything, has had its fair share of pros and cons so far. For instance, even though many companies and organizations are seeing a decrease in organizational and operational efficiency, certain individual professionals and employees are actually seeing an uptick in efficiency.
Shaping Your Procurement Software Strategy
There are many elements to consider in building a procurement strategy for your business or organization. Choosing the right technologies for the right functions, hiring the right staff, and properly equipping them with the tools and resources they need to work from home for the foreseeable future are all aspects that need serious thought.
Understanding the shifting marketplace, and how it affects your procurement team is going to be integral in surviving the rest of 2020, and beyond.
Visit the premier procurement information hub, ProcurePort to always stay up to date on the most important procurement knowledge and advancements. Not only that, but visit ProcurePort today, and start building your custom procurement software solution from the best procurement technologies available.