4 Disruptive Digital Trends Procurement Needs to Keep an Eye On — Part 1

Here we are, with our next technology onset. We can see, talk and hear about everything being digital, from buying day-to-day groceries online to posting a review of a particular supplier you worked with. Every digital step that we take, generates new content on the internet and gets stored online with access to/the capability to reach millions of people. With so much data available 24*7, digital trends often venture towards disruption. What should procurement professionals be aware of? What precautions should one take?

Let us look at each one by one: –

1. Social Media? “John, I recently read your post on LinkedIn about commodity price fluctuation, we are already in conversation with a vendor and your post was a great help while negotiations”. This is the power of Social Media. It empowers users to take their own informed decisions and execute next steps with the help of little online research. This is possible today because, professionals take their good/bad experiences online. They share critical details of what/when/how and describe the nitty gritties with a view of being able to spread the information & market insights to relevant audience and peers. While this is a mode of communication between organizations, suppliers, customers & peers; it has the possibility to unknowingly leak confidential information out especially in the eye of competitors. Behavioral traits play an important role in social media as well. Everyone likes to vent our negative thoughts about a brand.

What to ensure? — Read every post before you publish it to ensure you do not share any confidential information related to your organization. Avoid disclosing names of other professionals involved, use pronouns like colleague or peer. Check if there is anything that the competitors might use against you. Before responding to any ongoing social media interaction, confirm the words/statements that you have used. Avoid misquoting facts/people as they can be easily tracked online. Every update speaks volumes about the person posting it. Ensure you share appreciations and not just depreciation.

2. Cloud Computing? In the light of new technology driving procurement performance, professionals are slowly moving from complex ERP-systems to user friendly, reliable & efficient cloud-based platforms. The powerful cloud technology brings in a wide range of benefits like global implementations, cost efficiency, intriguing statistics, ease of sharing data across teams, improved collaborations even with external vendors. The drawback lies in the security of the cloud system. If the cloud technology you are working with does not follow adequate security protocols, your organizational data is at a high risk of an external leak. Another common drawback seen is user adoption. Professionals are reluctant to do away with processes they have been used to and find trusting technology as dicey.

What to ensure? — Review security parameters of any new or existing cloud technology that you are using and go ahead with only those vendors who have strict security policies in place. Additionally, get your suppliers reviewed for their security parameters as well. Ensure your organization invest in Cyber Insurance Policies to cover damages if any. Train all your stakeholders for the new technology. Ensure the team has access to support for any questions or doubts they might have.