Procurement Trends to Watch
A great deal of attention has been focused on eProcurement and the value it can bring to an organization.
A great deal of attention has been focused on eProcurement and the value it can bring to an organization. A report issued earlier this year by Levvel Research identified three key procurement trends that are worth watching.
- Procurement function shift: Procurement is no longer solely about supply chain management and overseeing traditional activities. Rather, it has shifted to have more expansive and holistic participation with the business. “Procurement leaders’ goals have evolved from simply controlling spend to strategically executing procurement functions that support the business’s financial and operational decisions, protect its bottom line, and mitigate risk to the company’s competitive advantage,” the report noted.
- Procurement technology changes: The report found that “eProcurement technology providers are offering tools that enable more strategy, risk control and supply-chain-centric management to align with the shifting values of procurement leaders.” Technology providers are creating fully digital procure-to-pay options and are using artificial intelligence to process purchase orders and detect fraudulent spend.
- Increased adoption predicted: Levvel Research expects to see increased adoption of eProcurement by smaller businesses. “Overall, eProcurement adoption is being planned sooner by segments that have traditionally delayed adoption until they had the growth and resources to justify the need,” the report said. In addition, the firm says that adoption plans by smaller organizations indicate that eProcurement tools are increasingly being implemented proactively rather than reactively and are being viewed as a vital instrument to support growth.
The report also noted that centralized procurement processes allow more transparency and controlled purchasing but adds that decentralized procurement can be properly managed with the right tools, including electronic procurement systems.