Recognizing and encouraging strategy as a relevant topic significantly contributes to the procurement profession. Cirtuo has identified some trends in strategic procurement, which will continue to gain pace as the matrix evolves!
1. Sustainability and sustainable procurement
Forward-thinking organizations must continue to ensure a strategic focus on sustainability. Sustainability initiatives should not be driven from a tactical level as “big picture thinking,” and a long-term vision is needed. By connecting category, supplier, and procurement development with sustainable procurement strategies – organizations can bring clarity and trust to end customers. More than half of a company’s environmental, social, and governance footprint lies with suppliers. Talking and walking sustainability is making the procurement function a key contributor internally and a force for a better world.
2. Category and supplier risk strategies
Cirtuo has been promoting category and supplier/risk strategy over the past decade and has significantly contributed to procurement strategy becoming a mainstream movement. Over the past few years, globally felt, chaos resulted in a significant demand for strategy around categories, suppliers, risks, and procurement.
3. Engagement of procurement stakeholders
A “Zeitwende” is happening right now, a German expression that means “the end of one era and the start of a new one.” National economies, global and local companies, and procurement organizations of all sizes are waking up to the “new normal era.” Disrupted supply vs. demand ratios will require a correction in business requirements, driving real-time understanding of market challenges and even stronger engagement of procurement stakeholders.
4. Digital procurement
The strategy creation process was a laggard in digitizing. Strategy, its quick review, and execution will make a difference in helping organizations gain a competitive advantage in the future. Why? Because Category Management solutions are at the beginning of the product life cycle.
