Why Procurement Must Transform Itself by 2020

This white paper from Deloitte states that procurement will look very different in 2020, compared to today. If companies don’t embrace the new procurement processes they are very likely to fall far behind the competition. Therefore the first step will be to fully understand how the procurement landscape is shifting around us.
 
With new business dynamics and continued volatility, uncertainty has become the only certainty common across procurement leaders. In 2020, procurement will likely need a new operating approach to optimize localization and global support.
 
A framework for procurement success in 2020:
 
  • Innovation and Creativity

Company leadership will likely look at procurement as a group that sources ideas, for example through group purchasing organizations (gpo).

  • Linkage and Alliance
Organizational alliances are vital. For example finance and procurement will likely have joint responsibility for metrics and controls.
  • Talent
By 2020 the procurement team members will likely be completely embedded in the business across legal, IT, HR and supply chain etc.
  • Technology and Intelligence
Procurement journeys will likely include a range of technologies to help tackle strategic areas like value engineering and inventory.

 

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