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Top 4 Procurement Trends 2024 and Beyond: Asia-Pacific

Procurement Trends in Asia-Pacific in 2024
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Procurement Trends in Asia-Pacific: Reshaping APAC Supply Chains

The procurement function is undergoing transformation for quite some time now, as businesses continuously adapt to the demands of a rapidly changing environment. The Asia-Pacific region has seen significant growth in recent years and is poised to become one of the critical drivers of the global economy in the coming years. The ever-evolving dynamics of the industry have led to procurement trends in Asia-Pacific, which will be discussed in more detail further.

With this growth and development, the procurement landscape in the region is also undergoing a significant shift. Therefore, to stay ahead of the curve and stay competitive, it is crucial for procurement leaders and professionals to stay informed about the latest procurement trends in Asia-Pacific and developments in the field.

Here we will take a closer look at the top four procurement trends expected to shape the procurement landscape in 2024. These trends have been identified through industry research, expert insights, and real-world examples of best practices. They define the future of procurement and beyond.

By staying informed about these trends, procurement teams will be better equipped to meet the demands of the rapidly changing business environment and to support their organizations in achieving their goals and objectives.

With the increasing importance of sustainability and social responsibility, procurement teams will face new challenges and opportunities in the years ahead. By staying informed about the latest procurement trends in Asia-Pacific and best practices, procurement teams will be better equipped to meet the needs of the business, improve supplier relationships, and positively impact society and the environment.

Trend 1: Supplier Sourcing and Risk Management will be a key focus

One of the major challenges procurement teams face is ensuring the availability of high-quality products and services from reliable suppliers.

In 2024, supplier sourcing and risk management will continue to be a key focus for procurement teams in the Asia-Pacific region. In addition, organizations will be looking for ways to improve their supplier relationships and reduce the risk of supply chain disruptions.

Procurement teams will use advanced technologies, such as artificial intelligence (AI) and machine learning (ML), to perform real-time supplier risk assessments, automate the supplier onboarding process, and monitor supplier performance. They will also be leveraging data analytics to identify trends and patterns in supplier behavior, which will help them make informed sourcing decisions. And it will enable procurement teams to identify potential risks early on and take proactive measures to mitigate them, ensuring the business\’s continuous flow of products and services.

Explore Zycus’ AI-driven Contract Risk Management​​ Software

Trend 2: Digital Transformation across Source to Pay processes will continue unabated

Digital transformation has been one of the key drivers of change in procurement over the past few years, and this trend is expected to continue in 2024. As a result, procurement teams in the Asia-Pacific region will be looking to automate and streamline their S2P (Source-to-Pay) and P2P (Procure-to-Pay) processes, using digital tools and technologies such as e-sourcing, e-procurement, and e-invoicing. These have been shaping up the digital procurement trends in Asia-Pacific for the year.

Adopting digital technologies will help procurement teams improve their processes, reduce costs, and increase the speed and accuracy of their operations. It will also help them better collaborate with suppliers and other stakeholders, improving supplier risk and performance management and more effective supply chain management. Read more about supply chain management trends 2024.

In addition, this will enable procurement teams to respond quickly to changes in demand, ensuring that the business has access to the products and services it needs, when needed.

Trend 3: Cost Optimization will continue to be a recurring theme

Cost optimization will continue to be a recurring theme in future procurement trends in Asia-Pacific. Procurement teams will be looking for ways to reduce costs while maintaining or improving the quality of the products and services they buy.

This will involve leveraging data and analytics to identify areas where cost savings can be made, negotiating better deals with suppliers, and using digital technologies to streamline their processes and reduce administrative costs.

Procurement teams will also use category management techniques to optimize their spend across different categories of products and services and use strategic sourcing methodologies to drive down costs while improving supplier relationships.

By continuously looking for ways to reduce costs and investing in the right procurement software, procurement teams can enhance their organization\’s bottom line and contribute to its long-term success.

Trend 4: ESG and CSR Initiatives will continue to be on the rise

Environmental, social, and governance (ESG) and corporate social responsibility (CSR) initiatives will continue to gain importance in 2024. Organizations are becoming more conscious of their impact on society and the environment, and procurement teams will play a key role in helping them achieve their ESG and CSR goals.

Procurement trends 2024 bring forth the importance of evaluating suppliers based on their ESG and CSR performance and select those that align with their organization’s values and objectives. They will also be using their purchasing power to influence suppliers to adopt more sustainable practices, such as reducing their carbon footprint, minimizing waste, and improving working conditions.

Procurement teams will also work closely with their internal stakeholders, such as sustainability teams, to ensure that the products and services they buy align with the organization’s ESG and CSR goals.

We have published a latest edition of our magazine that talks about sustainable procurement landscape in 2024. Explore what experts have to say about where procurement practices might be headed in the future. We examine the current state of sustainable procurement, how technology is driving innovation, and what goals companies should strive for over the next five years.

Conclusion

The procurement landscape in the Asia-Pacific region is undergoing a major transformation, driven by advances in technology, changing customer demands, and the growing importance of ESG and CSR initiatives. In 2024, the region\’s procurement teams will focus on supplier sourcing and risk management, digital transformation, cost optimization, and ESG and CSR initiatives. By staying ahead of these trends, procurement teams will be better equipped to support the business, improve supplier relationships, and positively impact society and the environment.

In conclusion, the trends discussed in this blog post represent some of the critical drivers of change in procurement in the Asia-Pacific region in 2024. By staying informed about these trends, procurement teams will be better equipped to meet the demands of the rapidly changing business environment and positively impact the organizations they serve. To get an in-depth perspective about these trends, you can read our eBook, Top 4 Procurement trends to watch in 2023: Asia-Pacific.

Related Read:

  1. Procurement automation: How can it help in procurement transformation?
  2. Understanding Blockchain in Procurement and Its Impact 
  3. Procurement vs Purchasing: Understanding the Difference
  4. Procurement in Value Chain for Business Advantage
  5. White Paper – Unraveling Cognitive Procurement: Unlocking Efficiency With AI
  6. White Paper – The 11 Most Important KPIs to Unlock Sustained Procurement Performance in 2024
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Namrata is a content writer with over three years of experience in the field. She has a Master’s degree in Marketing and is passionate about writing, and reading. Namrata loves experimenting with different genres of writing and enjoys working on creative projects. When she’s not writing, you can find her exploring new bookstores or spending time with her books.

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