4 Key Procurement & Sourcing Trends for 2019

In the last few years, the procurement world has undergone phenomenal changes. The current procurement trends have been initiated in 2018. These trends are very likely to continue for some time. In this age of cut-throat market competition, every organization is adopting innovative ways to cut down their production costs. In this case, sourcing in cross-border markets is a viable strategy for business firms. With the help of sourcing agents, companies formulate their procurement strategies. The recent procurement trends are very much driven by digital technologies.

procurement and sourcing trends 2019

The current procurement and sourcing trends are discussed as follows:
  • Having a digital strategy

The rise of digital technologies forced companies to change their sourcing strategies. Nowadays, most companies resort to cognitive sourcing technologies like Big Data Analytics, Machine Learning, Natural Language Processing, Artificial Intelligence, and Robotic Process Automation.

The focus of companies has gradually shifted from automating redundant procurement tasks to C-Suite empowerment. This facilitates the decision-making approach of business firms. Research studies stated that 85% of CEOs voted for the implementation of digital strategies. Putting a digital strategy in the right place is not a tough task if companies hire appropriate procurement agents. Procurement subcontractors also have a great role to play.
  • Developing a talent pool

Though digital technologies have overshadowed the traditional approaches, a large portion of the workforce is still not aware of its implementation. In recent times, the sourcing trend has shifted from cost savings approach to providing a strategic edge to the business firm. Nowadays, marketers try to create a holistic supply chain and thereby, ushering enterprise-wide cost reductions.

However, many sourcing leaders are in a dilemma regarding the implementation of digital technologies. Henceforth, modern-day organizations are trying to find the right talent while training their existing employees regarding the latest technologies. Sourcing agents help business firms to streamline their talent pool that fits their requirements.
  • Considering suppliers beyond the price

Organizations need to collaborate with suppliers at every stage of the operations. The landscape of supplier management has undergone a rapid change. Business firms need to cope up with this change. No doubt, suppliers are an integral part of the supply chain process. Modern-day marketers focus to build cordial relationships with the suppliers. If the suppliers are aware of the various stages of a sourcing cycle, they can play a great hand in reducing the risk quotient. Moreover, they can also help organizations in formulating the best pricing policies.
  • Risk management

One cannot predict the occurrences of unforeseen circumstances. Procurement risks may come in the form of political upheavals, unstable economic scenario, etc. Procurement agents give suggestions to companies regarding the possible solutions under such circumstances.

Most organizations try to stick to the above-mentioned trends. The procurement subcontractors maintain a healthy relationship between the stakeholders and the suppliers. Conform to these procurement and sourcing trends if you want to make your organization’s operations a success.

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