Zycus welcomes this guest post from Bill Michels, CEO at Aripart Consulting.

In this article, you’ll learn from Bill Michels, CEO at Aripart Consulting, about 10 mega-trends that’ll rule Procurement 2020

2015 was the year of the merger, which meant industry consolidation, mega-mergers, and industry consolidation across most supply chains. This trend was driving many companies to develop exclusive, integrated, and competing for supply chains. Companies that have advanced this practice are Apple, Samsung, and Toyota with end-to-end integration serving the final customer. The key drivers of this type of supply chain are cost transparency, value creation, integrated business systems, and innovation. Is your company on top of procurement 2020 that is to shape your supply chain?

Learn More: Procurement Experts Outlook 2021 and beyond

Source-to-Pay Digitization Diagnostic

Procurement 2020 is large, transformative, and global taking control of the future. Procurement 2020 defines our talent needs, organization structures, processes, systems, and strategies for the future. The key to success for our organizations is an analysis of global procurement trends for 2020 to translate them into mega-trends for your  supply chain management.

Ten key trends for procurement 2020

1. Supplier relationship management as a core competency
2. Prioritizing value creation over price management
3. Transfer of innovation strategy for supply chain success
4. Focus on portable manufacturing
5. Workforce back up for business contingency
6. Internal and external collaboration at the business forefront
7. Aligning business strategy to supply chain
8. Prioritizing distribution, logistics, and asset management
9. Agility, flexibility, integration, transparency, and alignment will dominate the competition
10. Shorter product life cycles

Invest in Talent Development

Trends of Procurement 2020 have been evolving to keep pace with the changing supply chain. I’ve seen many companies struggle to keep up, but it is time for those who invest in developing skills and improving processes succeed. The procurement profession has made tremendous leads moving from simply price management to a version of sophisticated strategic category management. When you look to the future, it becomes very clear that we will move away from category management into supply chain value management.

Greater Integration

Trends of Procurement 2020 are accelerated towards greater integration of supply chains in terms of demand and supply management, new product development, lean production, and shorter product life-cycles. This is being driven by the need to respond quickly to the procurement trends and requirements of the year 2020 and thereon. Beneficial are those who are meeting demanding customers and consumers by employing these trends already. While it’s true, no one can predict the future, ignoring the above-discussed procurement trends for 2020 could lead to a severe competitive disadvantage, new competitors, declining market share, and potential failure. What will you do next?

Learn More: 5 Steps for effective supply chain management

Related Read:

1. Blog – 5 procurement levers to optimize manufacturing supply chain during a pandemic
2. Blog – One Size Doesn’t Fit All: Why Supply Chains Need Micro-Segmentation?
3. VUCA approach towards Supply Chain
4. Zycus Supplier Management Software
5. White Paper – 5 Steps for effective supply chain management
6. Webinar – The Procurement Value Proposition: The Rise of Supply Management