What is the current state of procurement?
Procurement services are currently in a period of massive transformation. The global political and economic landscape is experiencing huge turbulence with is causing dramatic market shifts. On top of market volatility, digital innovations are changing the way procurement operates day to day, and creating new ways for it to become a major value creator for organizations.
According to CIPS, 64% of organizations report that procurement’s influence is growing and 25% of CPOs now have a permanent seat at the board table. As more and more leaders understand the value great procurement outcomes can bring to an organization, it’s crucial your procurement team continue to show just how valuable you are.
What’s the outlook for procurement over the next five years?
Transformation in procurement will continue to accelerate towards 2030. It’s unlikely the market will settle down anytime soon, so building supply chain resilience and mitigating risks will be high on procurement leaders’ agendas. You’ll need to make sure you diversify your supply routes and ensure you haven’t created a single point of failure for any of the goods or materials you depend on. That means modelling more potential partnerships and collecting and analyzing more data. ESG commitments will also intensify, making environmental considerations an even stronger factor in your procurement decisions.
And as technology continues to mature, you’ll need to look at how you want to adopt new digital tools and strategies in your organization. New talent will want modern ways of working, including innovative, tech-driven capabilities and AI-native tools.
What does advanced technology mean for the future of procurement services?
By implementing automation in the right areas, you can streamline repetitive tasks, reduce cycle times, minimize errors, and free up your team to focus on the most strategic and valuable aspects of procurement. It also gives you the means to scale without having to dramatically increase the size of your workforce.
Automated systems can give you immediate access to data across categories and suppliers so you can see your spend, understand it, and crucially, continuously optimize it. This visibility helps you budget, forecast, and control your costs, even in the most volatile markets. It also informs insight-driven decision-making, negotiations, and risk mitigation. And it helps you align every decision with the wider strategic goals of your business.
By removing human error from some of your workflows you’ll also simplify contract and audit compliance and ensure both regulations and your policies are automatically adhered to.
Analytics
With advanced analytics, you can turn your procurement data into valuable insight — making it a hugely valuable strategic asset. Analytics help you better track your and your suppliers’ performance in terms of delivery times, quality, ESG compliance, and more so you can flag performance issues as soon as they arise. They also help you identify your highest performing partnerships so you can nurture and grow them even more.
Advanced analytics also help you weather market shifts. By monitoring geopolitical events, climate patterns, and the global economic outlook you can assess likely future scenarios and put plans in place that will help you adapt when needed. You can also use scenario modelling to cement different strategies for potential market shifts and ensure your plans will set you up for success — no matter what the market throws at you.
Embedding analytics into your workflows helps you fully understand every decision ahead of you. And that means you can switch from constantly having to fight fires to taking a controlled and proactive approach to every aspect of your procurement strategy.
Artificial Intelligence
Together Artificial Intelligence (AI) and Generative Artificial Intelligence (Gen AI) have the potential to automate the majority of day-to-day procurement work including supplier onboarding, contract drafting, invoicing, and spend classification. This means your team can spend more time focusing on strategic sourcing and developing supplier relationships.
And AI in procurement isn’t something that’s far off in the future. It’s happening now. In fact, a KPMG survey of 400 procurement and outsourcing executives found that 96% have already made progress toward implementing Gen Al.
As well as supporting the automation of low value, time consuming tasks, AI also helps you make the most of real time insights into market trends, price fluctuations, supplier performance, and demand. And that helps your team move from a reactive mindset to a proactive strategy.
How can specialist procurement services help you achieve more from procurement?
Specialist procurement services give you access to deep market expertise, strategic sourcing capabilities, and advanced technology like automation, analytics, and AI. You don’t just get the benefit of an expert partner. Procurement services like Procurement as a Service help you unlock:
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A stable supply of essential goods
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A streamlined, scalable procurement process
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Access to reliable data for truly insight-led decision making
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Better visibility, value tracking, and control
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Simplified compliance and ESG support
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Access to expertise, skills, and new perspectives
Plus, with a dedicated team whose only purpose is making sure procurement delivers as much value as possible. A procurement services provider will stay on top of changes in technology, markets, and procurement functions — so you can rely on them to always keep you at the cutting edge.
Conclusion
With dedicated procurement services like Procurement as a Service, you can be sure you’ll stay at the forefront of industry changes as they occur. The future of procurement may be filled with volatility and change — but it’s also full of opportunity to accelerate the value you can deliver to your organization.
To learn more about WNS Procurement’s procurement services, and discover what they could help your organization achieve, visit click here.