Overview

These five trends are changing shopping!

Digitalization does not stop at the procurement of companies in the B2B environment. This is indicated, for example, by the results of a survey conducted by software manufacturer SAP and the Würzburg-Schweinfurt University of Applied Sciences on digital trends in procurement. The 650 managers surveyed see big data (73%) and the Internet of Things and Industry 4.0 (43%) as the most relevant future topics for their area. Both are often already a reality in everyday working life: many processes that were carried out by employees just a few years ago are now fully automated. However, it is unfounded to conclude that artificial intelligence and smart robots will completely replace humans in purchasing. Purchasing employees with experience and a flair for communication are still irreplaceable, especially for non-standardized products with high investment volumes. However, it is also a fact that the strategic dimension will be more important than the operational dimension in the future. This means that purchasing will take on a new role within the organization: With extensive knowledge of current developments and forward-looking investments, it can become a driver of innovation for the entire company.

The pressure to digitize procurement is therefore increasing. However, the level of commitment has so far been very modest, especially in the procurement departments of SMEs – there is definitely still room for improvement. This is shown by last year’s analysis “The digital maturity level of procurement” by management consultancy Inverto. The study also reveals a number of trends that can help procurement to master the current challenges.

Trend 1: Adapt personnel development

In many procurement departments, the qualifications of staff are not ideally suited to the digital transformation. This is because most employees have primarily carried out operational tasks in recent years – in other words, they have organized specific procurement processes. This will still be necessary in the future. However, strategic tasks will become massively more important. And this will require the analytical flair and technological know-how of buyers. They must be able to systematically summarize data and draw appropriate conclusions from the results. Companies must respond to these requirements by adapting their personnel development.

Trend 2: Promoting agility

Agile procurement is needed to be able to react quickly to changes in the market and remain competitive. To make this a reality, buyers can no longer rely solely on their commercial expertise. They must also have an excellent knowledge of production processes and product specifications. Other departments also benefit from this additional knowledge. With its knowledge of the situation in its own company on the one hand and the latest developments at suppliers on the other, Purchasing can, for example, provide advice to Sales or Production and initiate innovations. This also strengthens cooperation within the company.

Trend 3: Expand networking with suppliers

Cooperation across company boundaries is also becoming increasingly important. The prerequisite for this is to drive forward digital networking with suppliers in order to optimize data exchange. If you are always informed about prices, quality and failures, you can act in good time and get in touch with suppliers. In addition, the number of errors is significantly reduced when information is transmitted without media discontinuity.

Trend 4: Ensuring data transparency

If connections with suppliers are digitized, this is accompanied by an enormous increase in the amount of data. The task of procurement is to keep this data up to date at all times and, above all, to make it transparent for all parties involved. This is important to ensure that cooperation with the specialist departments and external partners runs smoothly.

Trend 5: Invest in intelligent and predictive technologies

Intelligent technologies help to avoid getting lost in the flood of data and information during the entire procurement process and in all collaborations, thereby wasting valuable time. Internal processes are also accelerated if all information is not only stored in a central location, but also linked with each other. This not only improves communication and collaboration between departments, but also the monitoring and control of individual processes. This leaves more time for the essentials: Providing the company with the products and services it needs to maintain its position in the digital world.