Unlock the Potential of Procurement in the Digital Age

Procurement in the Face of Challenges

The last two years have presented unprecedented challenges for procurement. Many clients have experienced difficulties like never before. Dominique Lebigot emphasizes that procurement has a history of reinventing itself every ten years, and this current period is no exception. It's about being aware of the future and preparing accordingly.

CPOs must focus on how procurement can impact the business and drive growth. The next generation of procurement is about bridging the gap between the downstream and upstream markets, capturing growth opportunities at 360 degrees.

Reorganizing the Procurement Organization

In terms of organization, the future of procurement may not see a radical shift. However, the perception of procurement within a company will change. It will be seen as an enabler for growth, influencing various aspects such as innovation and the circular economy.

Buyers of the future will spend less time on transactional tasks like managing tenders and negotiating prices. Instead, they will focus on managing supplier ecosystems, developing business acumen, and driving revenue generation.

The Role of AI in Procurement

Artificial intelligence is set to play a significant role in procurement. It will help limit transactions, allowing buyers to dedicate more time to strategic influencing. ChatGPT-like technologies will facilitate the development of supplier ecosystems and anticipate market volatility.

While digitization brings new opportunities, it also poses challenges. Buyers need to adapt to the changing landscape and embrace new tools and processes.

Measuring Procurement Impact

Measuring procurement impact goes beyond just creating margins. It includes factors such as share price improvement and CSR. Procurement has a huge impact on building the company's image and generating revenues through supplier relationships.

In the context of volatility, procurement can play a proactive role in managing and even creating value. By influencing the markets, buyers can better control volatility and open new doors for the company.

The Circular Economy and Procurement

The circular economy is no longer an option but a necessity. Procurement must organize the circular economy to reduce the carbon footprint and generate profit. This involves rethinking production, selling services instead of products, and recycling.

Buyers of the future will need to engage with customers in discussions about bringing used products back into the production system. It's a collaborative effort that requires leadership skills.

Procurement as a Board-Level Topic

Procurement needs to become a leader and change manager across the company. Instead of waiting for recognition from executive management, procurement should take the lead and drive changes through its own leadership.

CPOs should work on multiple priorities simultaneously, depending on the company's environment and culture. Each piece of the puzzle contributes to the overall transformation of procurement.

As we look to the future, it's clear that procurement is at a critical juncture. The next decade holds great potential, and it's time to embrace the (r)evolution and shape the future of procurement.