Smarter Spending: Plotting the Future Path of Procurement with ProcureAbility
How Procurement Can Enable Strategic Value in an Evolving Market Environment
In today’s rapidly evolving business landscape, procurement is more crucial than ever. With influences like AI, regulatory shifts, and climate change reshaping the market, organizations must rethink their procurement strategies. Our inaugural edition of the ProcureAbility Procurement Pathways newsletter dives into insights from the 2024 Procurement Excellence Benchmarking Survey, highlighting how increased collaboration and technological advancements are enhancing procurement’s strategic role. Discover key themes, actionable strategies, and expert opinions that will guide your organization towards smarter spending.
Key Themes from the 2024 Procurement Excellence Benchmarking Survey
As procurement faces complex challenges shaped by macro trends, our survey reveals three critical themes:
1. Operational Excellence:
Efficient and cost-effective operations are essential. Only 15% of organizations separate strategic and tactical tasks, highlighting a performance gap that can hinder efficiency.
2. Value Enablement:
Procurement must leverage technology to generate organizational value. Currently, 50% of total spend is managed strategically, with top teams aiming for 75%–85%. Achieving this goal requires not only effective technology adoption but also a strategic focus on collaboration and long-term supplier relationships.
3. Growth Strategies:
Future procurement trends indicate a shift towards strategic category management and long-term supplier partnerships.
"The key to driving strategic value lies in preparing for negotiations with market intelligence and predictive analysis." — Darshan Deshmukh, President, ProcureAbility
Technology as a Catalyst for Change
Procurement can drive value through efficiency and effectiveness by adopting advanced technology. These tools not only streamline processes and reduce manual workload but also provide valuable insights through data analytics, enabling procurement teams to make informed decisions.Our survey indicates:
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"AI is creating a gulf between those who excel at their work and those who do not utilize it." — Digital Strategy Director, Pharmaceutical Company
Building Influence through Exposure
To enhance procurement's strategic role, professionals need exposure across departments. Engaging with various functions fosters relationships and skills critical for success. This cross-departmental collaboration fosters a deeper understanding of organizational needs, enabling procurement professionals to align their strategies with broader business objectives.
By working closely with areas such as operations, finance, and marketing, they can identify opportunities for cost savings, innovation, and improved supplier relationships, ultimately driving greater value for the entire organization.
“Start small, act as facilitators, and gradually engage more deeply." — Darshan Deshmukh, President, ProcureAbility
Enabling Teams for Success
To thrive in an evolving market, procurement teams should:
ProcureAbility, a Jabil company, has been transforming procurement operations for over 25 years, combining analytics and industry benchmarks with a customizable service delivery model.
Stay ahead of the curve and elevate your procurement function with ProcureAbility. Together, we can navigate the complexities of today’s marketplace and unlock new opportunities for growth. Download the Smarter Spending: The ProcureAbility Procurement Excellence Benchmarking Survey report now.
We invite you to subscribe to our newsletter for ongoing insights into procurement excellence. How is your organization adapting to these changes? Share your thoughts in the comments!
Chief Marketing Officer for ProcureAbility
2moInteresting to hear what is on the minds of global, cross-industry procurement leaders!