Trends in Procurement for 2018

Trends in Procurement for 2018

If there is one overriding trend in procurement for 2018, it is change is happening faster than we ever imagined.

The trends I will share impact organizations at every level of the marketplace.

The good news is that any size company can dramatically improve the impact of their procurement function. The tools and technology available can empower any size organization.

Some of the key changes that have been shared with me include:

Expect disruption in your markets. Software, storage and speed of processing have put the ability to create fundamental change in everyone’s hands. A company that didn’t exist 3 years ago can tip the balance in a market.

Think laterally – new competitors or solutions will come from industries with similar challenges. There are more similarities in our problems then we believe.

Amazon and Google have impacted industries far outside the ones they originally competed in. And there are many smaller companies that have done the same.

Transparency and adoption should be fundamental goals. Trust will help you achieve both.

Not every change will work – so what – it won’t take years or even months to figure it out. Consider a pilot project or take a smaller risk to test the product or concept.

If you aren’t willing to change your organization, you are sure to be overwhelmed by the competitors who will.

There is an abundance of information and market data available if you know where to search. Every stakeholder and collaborator can be another set of eyes on the market and we all benefit from this.

Engaging stakeholders early will build trust if you are sincere in your goal to support them. This is a proven way to reduce rogue spend.

The speed of communication both formal and social impacts our decisions in surprising ways. The impact of a poorly thought out message or response can destroy a lot of splendid work instantly.

Building relationships has not gone out of style. Good rapport is vital. A 3-minute phone conversation can clear up an issue more easily than writing a long email response. Call then send what you agreed on.

Rogue spend can be fueled by many factors. Make it hard and people will find a way around it. Make it arbitrary and people will bury it.

If you are feeling a bit overwhelmed, that is ok.

We all feel that way some days.

Many professionals in procurement believe that their issues are unique. Looking from the outside I would suggest that there are more common issues.

I find that most companies want to achieve the same goals in sourcing – smarter, faster and more profitable.

We can all get better and it will likely happen if we look to improve 1% today and again tomorrow. If that is your goal every day, 2018 will be your best year ever.

Action Step: If you are uncertain where to start the process of change, a procurement professional like myself can provide guidance and expertise to help your organization achieve the results you want.

If you want to go explore this topic in greater detail, please contact me. I invite you to request 30-minute discovery conversation. In my experience the next step will be apparent at the end of the call. I never assume that what I have to offer will be right for everyone, so don’t expect a sales pitch. You can reach me at (973) 718-7071 x875. The call will be forwarded to my mobile phone if I am not in my office which is pretty likely.

If you would like to know more ways to reduce costs without changing the way you do business, simply give me a call or send me an email with your contact information and the best time to reach you.

You Won’t Drift to Success©

Commit to taking the next step.

Until Next Time, I Wish You Great Success in Your Business and in Your Life

Mike Jeffries