Sustainable, Innovative, and Strategic: The Future of Procurement

Until recently, purchasing was an underestimated corporate function. In recent times, however, purchasing has become the strategic driver of corporate value.??

As supply chains become increasingly complex and processed, and companies strive to be ever more sustainable, profitable and agile, the future of procurement is set to change even more radically.??

The future of supply chains, driven by technological innovations, the growing exploitation of data and new strategic priorities in companies and in the global economy, will profoundly transform the way companies manage their purchasing and their relationships with customers and suppliers.?

In this context, it's interesting to observe how this procurement roles evolves, through technological innovation and the surrounding society, and in what way.?

• Efficiency through automation?

According to the major consulting firms, digital transformation will partly define the future of procurement. Traditional procurement processes, which were often manual and time-consuming, are being replaced by automated digital solutions. Streamlining procurement workflows through AI (Artificial Intelligence) and RPA (Robotic Process Automation) will improve decision-making by procurement leaders, but also the transparency of choices.??

This will ultimately lead to faster cycle times, better process adoption and more time for high value-added strategic work, ultimately positioning procurement as a decisive strategic partner.??

Ultimately, the adoption of these new tools will reduce human error and deliver significant savings: in money and time. All the Procurement teams will need to train and adapt to this new way of working.???

• Data as a performance driver???

In today's world, data, as it can be exploited, is becoming an invaluable asset in the battle to optimize costs and risks.??

Indeed, thanks to the vast amount of data now available, purchasing teams are able to make faster, more result-oriented and therefore, more strategic decisions.???

Improved data tools enable organizations to transform raw data into key information for decision-making, optimizing procurement strategies for cost reduction, risk management and supplier performance, and even the company itself.?

• A substainable procurement strategy in tune with today's world?

With sustainable development taking off so rapidly in our global economy, purchasing teams need to align themselves with corporate social responsibility (CSR) and environmental, social and governance (ESG) goals. This evolution means that purchasing will play a central role in ensuring that companies source goods and services from environmentally and ethically responsible suppliers.??

The 3P theory (profit, people, planet) - the business idea that companies should not only consider their financial performance, but also assess their social and environmental impact - is relevant to understanding how procurement's role is evolving (cf below) ?

Assessing a company's footprint on society is no longer optional. When organizations embrace sustainable development, they believe in creating value for all stakeholders. These include customers, suppliers, employees and the wider community. The challenge for purchasing is to integrate these considerations into the decision-making process.?

A consistent ESG strategy can have an impact on the bottom line. McKinsey, in its latest study, shows that strong ESG credentials reduce costs by 5-10%, and that the most ESG-performing companies show higher growth and valuation, with margins of 10-20%.???

Solid supply chain analysis and visibility can identify potential shortages and supply shocks. A governance policy can also reduce the risk of fraud and corruption. You have greater visibility of potential threats, especially those related to the environment and society. This risk mitigation covers both short- and long-term corporate contingency planning.??

From a talent attraction point of view, ESG strategy is also very important. The environmental impact of companies is an important factor in the choice of employers. 69% of procurement specialists consider a company's environmental record to be a key factor when choosing a job.???

• Becoming the company strategist?

As purchasing evolves, its role within the organization becomes increasingly strategic. Rather than being seen as a cost-cutting function, purchasing will increasingly contribute to business growth, innovation and resilience.???

This evolution will require procurement professionals to develop new skills and capabilities, such as strategic thinking, cross-functional collaboration and leadership.???

Procurement and its workforce can become, through this revolutionary transition:???

• Value creators: Procurement will go beyond cost reduction to create value through innovation, risk management and sustainability.??

• Company-wide strategy ambassadors: Purchasing teams will work more closely with other departments, such as R&D, marketing and finance, to align purchasing strategies with broader corporate objectives.??

• Real leaders at company & market level: Purchasing managers will be expected to influence key stakeholders and contribute to strategic decision-making at executive level.?

In conclusion, it seems appropriate to think that the future of procurement is one of major transformations and team adaptation, both necessary and a source of opportunity. As digital technologies, data-driven decision-making, sustainability and collaboration with suppliers reshape the procurement landscape, procurement professionals will be able to become true leaders within the company, with growing impact, thanks to their adaptability and strategic agility. In doing so, they will not only optimize procurement processes, but also contribute to the long-term success of their organization.??

Procurement is no longer just about finding the best deal, but also about creating resilient, ethical and innovative supply chains that drive business.?

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