In this article, the authors argue that procurement must be transformed to meet the challenges that lay ahead for all businesses. After outlining five megatrends that will impact your business in the coming years, they offer concrete advice on how to use procurement to gain competitive advantage.
Across industries, leaders and managers may be missing a critical piece of the big picture: the increasing importance of procurement to the bottom line success or failure of their companies. The reality is that 80% of a company’s expenditures go toward procured goods and services, and procurement is the single function that makes decisions around all external costs. It is uniquely positioned to lead a company through the turbulence of the years ahead.
In this article, we describe the five macroeconomic “megatrends” that will impact all businesses over the coming years, and how procurement is positioned to help them cope. Then, we explain the ways that procurement must transform itself in the near future, so that it can continue to provide solutions for conquering the challenges that lay ahead.
First, the five megatrends: