The future of procurement
The future of procurement
Insight

The future of procurement

The procurement function must develop new capabilities to stay in front of change.

Organizations are facing unprecedented change and disruptions that threaten their future viability. Consumerization, expanding regulatory requirements, pricing pressures, an ever-evolving industry landscape due to M&A activity, shifts to outcome-based pricing are all key forces compelling procurement leaders to reevaluate strategies.

Given this convergence of forces, chief procurement officers must ask themselves "What will be the role of procurement be? Is there one?"

Enabling user friendly processes, policies and procedures, harnessing broad data sets to drive automation and analytics, and empowering self-service across all processes to do more with less are just some of the disruptions that are quickly making their way into each organization.  How can you prepare for the future of procurement?

The future of procurement

To compete going forward, enterprises must seamlessly integrate suppliers and customers, and enable them with digital platforms, extreme analytics, leading workforce capabilities and an agile procurement operating model.

The CPO agenda for the future of procurement

Leading procurement organizations have developed an agenda to deal with disruption. They are moving into the future with:

 

And they are enabling the future of procurement with:

 


 

Envisioning frictionless purchase and delivery

 

Where to go from here?

It’s no longer business as usual for procurement. The scale and speed of transformation required to address the mix of disruptors impacting procurement is unprecedented. The key to success is to proactively develop a blueprint for how your procurement organization can turn these disruptors into opportunity for competitive advantage and growth.

This is what the future requires of procurement. Contact us today to start moving forward. 

Related insight

Future-proof procurement. Now or never: The big procurement transformation

Explore in this report four potential scenarios for procurement in the year 2035, developed by Florida State University College of Business and KPMG International.