Top 3 New Year Resolutions for Smarter Procurement in 2017!

2016 has been one of the better years for procurement with increasing C-suite support for procurement and diminishing resistance to technology adoption.

Now that the holiday season has hit us with the end of 2016, let us look at some of the more realistic resolutions that procurement can make (and keep) in order to make 2017 the year of procurement.

1. Go strategic

As per Zycus recent research report Pulse of Procurement 2016, comprising of responses from over 650 procurement professionals, almost 50% of the respondents said that “one of the most critical trends for their procurement organization in 2016 is still all about continuing to push transformation of procurement from tactical to strategic.”

• A phrase that spells out the difference between tactical and strategic purchasing in the most simple ways is “strategic is doing the right things — tactical is doing things right.”
• Simply carrying out the routine tasks of purchasing without any thought on the management objectives or organization-wide goals in general can be nothing but disastrous for the company as a whole.
• In 2017, procurement is expected to choose strategic sourcing over tactical purchasing through important components like advanced spend analysis, supplier life-cycle management and contract management to name a few.

2. Go digital

• Procurement is expected to take a spring forward in technological proficiency in the coming year.
• There is expected to be a restructure of procurement processes and communications around digital devices and languages.
• The millennial generation is willing to take up the risks involved in order to take the digital revolution in procurement to its highest peaks.
• More willing adoption of the enriched procurement technology capabilities like big data analytics, mobility and cloud based technology is expected in 2017.

3. Go social

Going social for procurement could mean either of two things:

• Increased social media presence

Social media presence for procurement can lead to increased realization of benefits through connecting with peers, collaborating with suppliers, gathering market Intel, mitigating risks, widening sourcing possibilities and sharing of best practices among others.

2017 could be the year procurement goes all out on social media platforms in order to engage and collaborate better with suppliers.

• Increased social conscience

Socially responsible procurement is a growing trend and is expected to be one of the top most priorities for CPOs in 2017.

The impact of expanding supply chains across the globe will have diverse impacts on the environment, carbon print and local populations.

This is something the procurement leadership will need to keep in account while devising strategies as well as carrying out routine purchasing activities in 2017.

On that note, Zycus wishes you happy holidays and a prosperous new year ahead!

Should you have any opportunities for Zycus to make your procurement organization 2017-ready with technology, be sure to contact us here !