Overcoming a neglect of procurement by CEOs, why the profession will transform beyond recognition and how to take the driving seat are all among the top three messages for 2023, from thought leaders Art of Procurement.
Philip Ideson, Managing Director of the Art of Procurement, shares what he considers procurement leaders should be thinking about in 2023 in an article and podcast.
Procurement to transform or even cease to exist?
Philip comments procurement will transform beyond recognition in the next 10 years.
He says tech and service provider delivery models are converging, allowing for more devolved decision-making to distributed buyers.
He believes procurement professionals who embrace change will shape the future of the profession and be in high demand.
Outsourced third parties could eventually manage all tail spend and buyers become responsible for determining which buying channel to use.
“I believe this will lead to a much smaller procurement organisation, with those who remain serving as relationship leads and architects, designing and building highly customised processes and experiences for each stakeholder group, and leveraging a whole raft of technologies and external partners in the process,” Philip says.
How to put procurement in the driving seat
Procurement should take action and be in control of its own future by understanding new technology and delivery models, when it comes to putting the profession in the driving seat, says Philip.
He laid down “a call to action” for procurement to think big and have a full handle on the tech landscape.
“Now is the time to think big and take some well-informed risks!!,” he said.
“This is a call to action. Procurement needs to understand the technology landscape, emerging delivery models, etc. and take a position on how to leverage them.”
He says a vision for the future needed to ensure automation and AI were front and centre.
“This vision MUST include advanced use of automation and AI and the distribution of tech-enabled buying responsibility back into the business because this is what is being pitched to your C-suite,” Philip said.
“Write or revisit your transformation plan. This is relevant if you are a CPO with responsibility across procurement or if you are a category lead. Ensure procurement is aligned with business objectives and considers how it creates a competitive advantage.”
Go to the Art of Procurement for the 3 Key Messages for Procurement Leaders in 2023.