2019 has brought us many interesting developments in procurement. However, 2020 is already showing the potential for even more significant advances. Here is what you need to know about procurement news in 2020 and what you should expect from the industry in the New Year.
Markets Are Changing, and Businesses Are Too
The rush of change has shown no signs of slowing down by 2020 and businesses are reinventing themselves and their products with alarming rapidity.
Two major shifts to expect in procurement news next year are an increased emphasis on speed and decentralization. As more brands vie to reinvent themselves and their products repeatedly over the course of business cycles, procurement teams will have a need for speed to keep up.
Decentralization in terms of decision-making will also play a larger role in procurement news in 2020. In order to adapt to businesses’ reactions to the constant changes in the market, the procurement process will need to be more flexible. The need for flexibility is driven by the new focus on speed of support.
Expect More Demand for Customer-Oriented Technology
Due to current trends in the corporate environment that are expected to continue, 2020 will see a continued rise in demand for customer-oriented technology in procurement. Business users have come to expect the same degree of customer-oriented focus as consumers, if not more. It is therefore imperative to use procurement software that features technology that can satisfy the demand to be more customer-oriented. Procurement software that allows for customer-oriented decisions is going to be key to succeeding in 2020’s customer-centric market.
Gear Up to Cut Costs and Increase Efficiency
Another major focus in 2020 will revolve around cutting costs while increasing efficiency. The intensity of the global market has been ruthless to businesses who end up spending more than necessary when handling their purchasing manually. The most apparent solution is for more businesses to use procurement software instead.
Firms who use procurement software automatically get better deals from suppliers and avoid costly mistakes that are common among businesses that still manage procurement manually. That’s because procurement software automatically selects the best deals from suppliers, consolidates them when appropriate, and ensures that contracts never lapse.
Yielding the same amount of efficiency when trying to handle all of those tasks manually is impractical if not impossible. That means that the businesses that haven’t been using procurement software throughout 2019 should get with the program.
Increasingly Advanced Spend Management Technology
The year 2020 shows signs of bringing prolific and significant advances in technology for both direct and indirect spend management. The room for growth is breathtaking as less than 5% of global Chief Procurement Officers have initiated any major use of automation in these areas. That remarkably small percentage is contrasted with the fact that over half of the global CPO community feels that analytics are important.
One of the most valuable powers that analytics offers procurement teams is automation. e-Procurement software is the silver bullet that eliminates the many challenges of traditional procurement negotiations. Automating tasks with e-procurement software makes it easier to move from bantering overpricing to drafting contracts. The software accomplishes this by using automation to make pricing and negotiations over terms more efficient.
Preparing for the Procurement Challenges of 2020
Firms that plan ahead perform better, especially over rough periods that are laced with challenges. 2020 holds a lot of promise in terms of advantages in procurement, but it also holds some serious challenges to overcome.
The best way to overcome those challenges is to work with one of the best names in the procurement industry. ProcurePort helps companies overcome these industry challenges and even turn them into advantages. It pays to have an experienced partner that knows the business inside and out. Businesses who neglect to take advantage of more knowledgeable firms lose money when it comes to procurement. With a powerful ally that’s well-established in the industry, your business will weather the storms of 2020 and come out on top.
Navigate the New Year, with ProcurePort
Procurement is changing rapidly and 2020 is bound to bring countless new challenges along with new opportunities. Make the best of both, with ProcurePort, a progressive leader that you can trust.