By Isabelle Saffar, CEO at Synertrade
Seventy-two percent of CPOs reported digital transformation as a top priority, according to a recent Deloitte report, with a further 41% of respondents citing inadequate technologies as a significant barrier for improvement. This presents a growing challenge for procurement teams who are balancing the adoption of innovative technological solutions with the operational pressures of delivering results.
In this context, procurement is no longer solely focused on cost-cutting, it’s about evaluating an organisation’s spending behaviour over time, optimising processes, and implementing solutions and systems that streamline efficiency, improve profitability, and reduce risk. This makes the industry appear dynamic, leaving teams striving to remain up-to-date with the latest advancements and innovations.
With this in mind, organisations across the globe are shifting their efforts towards how they can maximise their competitive edge in the race for business success by leveraging emerging technologies, long-term partnerships and workforce development.
Forecasting for the future
Emerging technologies like AI are poised to continue transforming the procurement ecosystem, so helping teams prepare for these advancements and the role they will have in their organisations is key.
While there is a lot of buzz around AI and its ability to be a huge benefit to procurement workforces, the human factor is still necessary when it comes to procurement. Gen AI represents a leap in AI’s accessibility and usability, however, it is only one part of a broader ecosystem of AI technologies.
There are still many limitations with AI, such as its inability to clean databases or automate certain operations. Instead, it is recommended that businesses integrate AI tools tailored to specific use cases, ensuring they complement existing processes.
For example, a data-focused approach centralises information from multiple sources to deliver analytics and decision-making tools for procurement teams. Fragmented data management often leads to inefficiencies and poor decision-making, hindering business growth and the effectiveness of different organisational processes. Using data fabric enables cross-platform collaboration across different solutions, improving decision-making capabilities and allowing easier operation scaling.
Looking ahead, there are already areas where AI could have the most significant impact, including multi-risk management, compliance, and working capital performance. As regulatory demands increase, compliance tools are becoming crucial, highlighting the need for solutions that simplify compliance processes and reduce the burden on procurement teams.
The role of community
Moving from transactional relationships to collaborative partnerships with suppliers strengthens communications channels and resilience throughout the supply chain, which is made easier by effective Supplier Relationship Management (SRM) practices.
Reputation management is crucial for long-term success, enabling companies to improve credibility, market value, and stakeholder relationships. A strong reputation can take years to create and can significantly transform public perception. However, a business’s reputation can also be negatively impacted instantly.
With every new partnership there is an added risk when it comes to the new supplier’s reputation, meaning selecting partners who are compliant with regulatory needs and align with the company’s values and long-term goals is that much more important.
Frequent operational reviews encourage transparency and trust between an organisation and its suppliers. Open lines of communication are established, providing full operational visibility and enabling continuous improvement and collaboration among supply chain partners. Suppliers are more likely to invest in their processes and quality when they see a commitment to partnership from the business, leading to mutual growth and success.
Workforce development and upskilling
Procurement professionals must embrace a culture of lifelong learning in order to promote continual professional development among their employees. Procurement is poised for significant transformation with the growing requirement for data across supply chains, meaning businesses, especially those in leadership, need to prepare for the increased demand for new skills.
In fact, to manage the complexity of global supply chains, procurement professionals should be encouraged to develop versatile, forward-thinking competencies that extend beyond traditional procurement knowledge.
As procurement continues to evolve, so do the skills required to stay competitive. The future will require systematic thinking and the ability to gather and analyse information from various sources to make informed, strategic procurement decisions. Teams lacking these skills will quickly fall behind.
To stay ahead, hiring teams must prioritise these competencies and ensure ongoing training for their procurement staff, keeping them up to date with the latest procurement best practices and technologies.
Relationship management
Strong relationship management skills foster effective communication across suppliers and internal stakeholders, enabling procurement professionals to manage long-term supplier relationships, resolve disputes and negotiate favourable contract terms.
By developing and nurturing these relationships, teams can enhance supplier loyalty, drive better value from partnerships, and ultimately contribute to a more dependable and adaptable supply chain. As supply chains continue to expand, so will the need to integrate technology across suppliers and partners. Technology that is both intuitive and data-orientated can be leveraged by procurement professionals as a way of achieving their goals even more successfully.
Keeping pace with a changing industry
The procurement industry landscape is shifting fast with a real focus on delivering value beyond cost. Emerging technologies are coming to the forefront and are helping professionals to make decisions quicker and more effectively. However, relationships have always been at the core of procurement and in this new age, developing them will continue to be critical to success.
