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Procurement and supplychain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. Misaligned priorities, siloed systems, and unclear ownership can directly impact key performance indicators like cost savings percentage and procurement cycle time.
For the fourth consecutive year of co-authoring this study, our chief research officer, Pierre Mitchell, has contributed his expertise as procuretech analyst and advisor to help craft the ongoing study and identify what the aggregated responses mean in reality for procurement, the increased demand for its services, and the organization at large.
Direct and indirect procurement are two fundamental approaches in supplychain management, each serving distinct functions within an organization. Direct procurement focuses on production-critical materials and suppliers, directly impacting margin and operational resilience. Find Out More What Is Procurement?
With Christmas and January sales approaching, procurementteams are well into peak season. On the one hand, supplychain weaknesses are open to risk, and even the smallest challenges are magnified. For many FMCG procurementteams, these risks are linked to inaccurate forecasting.
By fostering these relationships, businesses can ensure stable supplychains, consistent quality, and even access to supplier innovations. According to a McKinsey report, firms that develop strong supplier partnerships are 35% less likely to experience significant supply disruptions. Click here!
By automating routine tasks, procurementteams can focus on strategic initiatives, which appeals to CFOs and finance teams. The need for resilient supplychains is also a key factor driving procurement digitalization. Customers use Onventis to consolidate suppliers and negotiate better terms.
Enterprise procurementteams face growing pressure to deliver strategic value – managing supplier risk, ensuring compliance, and supporting sustainability – all without sacrificing speed or control. This blog explores the most common challenges in digital procurement and the capabilities that matter most.
This leap in AI capabilities is revolutionizing industries, and AI-driven supplychain management is no exception. The Role of Agentic AI in SupplyChainsSupplychains are dynamic and complex, requiring continuous decision-making across multiple functions, from procurement and inventory management to logistics and demand forecasting.
In the ever-evolving landscape of supplychain management, procurement leaders must stay ahead of the curve to ensure success in 2025 and beyond. In this article, we will explore four key strategies that procurement leaders can adopt to navigate the complexities of the future supplychain landscape.
Opportunities for Procurement Technology As we look toward 2025, European businesses are reshaping their supplychains to navigate an increasingly complex global landscape. A recent report by Maersk and Reuters Events highlights that 68% of companies are making supplychain visibility and monitoring solutions a top priority.
This guide breaks down the key procurement technologies in use today and the trends reshaping the future, such as AI-driven sourcing, predictive risk management, and deeper integration across the supplychain. Your procurement technology platform should help unify data and processes across tiers to avoid disruptions.
As supplychains become more interconnected and risks more dynamic, traditional procurement tools fall short. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. This shift empowers teams to create greater value for their organizations.
As supplychains become more interconnected and risks more dynamic, traditional procurement tools fall short. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. This shift empowers teams to create greater value for their organizations.
Analytics and insights from procurement data were minimal. 20152020: Procurement Gains Strategic Recognition Emergence of Strategic Sourcing : CFOs began to recognize procurement’s role in driving long-term value through strategic sourcing, supplier relationships, and risk management.
In this type of environment, traditional procurement software and manual processes are insufficient – and many procurementteams are looking to artificial intelligence (AI) for answers. Key Takeaways Understand the potential impact of AI – including Generative AI & AI Agents – in procurement.
Modern procurement needs have far surpassed transaction management; procurement is now a critical component in driving strategic value across businesses and AI has become a key tool in procurementteams back pockets. This means better compliance, fewer disruptions and greater efficiency in managing supplier relationships.
Strategic Alignment and Goal Setting Every effective procurement strategy starts with clear alignment to enterprise-wide objectives. No matter the focus, whether cost reduction and quality improvement, or supplychain optimization and resilience, procurement must have a concrete role in delivering outcomes that matter to the business.
Understanding regulations is critical – but what truly builds resilience is training agile, informed teams who can pivot fast, minimize risk, and protect performance when global trade gets turbulent. Its the result of investing in targeted training that keeps your team afloat and ready to sail through any storm.
Despite investments in tools and data, most procurementteams struggle to scale their efforts beyond one-off reports or limited categories. This fragmentation leads to inconsistencies that undermine trust and force procurementteams to chase data instead of analyzing it. The culprit?
Strategic Alignment and Goal Setting Every effective procurement strategy starts with clear alignment to enterprise-wide objectives. No matter the focus, whether cost reduction and quality improvement, or supplychain optimization and resilience, procurement must have a concrete role in delivering outcomes that matter to the business.
By integrating these technologies, organizations unlock efficiencies, enhance decision making and create more agile, connected supplychains, ultimately boosting their ROI. Partnering with a comprehensive provider like SAP can help ease many common issues procurementteams face.
It leverages advanced technologies to optimize and automate procurement cycles and predict more favorable outcomes. Its real-time insights allow procurementteams to respond swiftly and effectively to changing market conditions and component availability.
Procurementteams now face a clear need: build bendable systems instead of unbreakable ones. This might include balancing domestic and overseas providers, large-scale manufacturers with smaller niche specialists, or established firms with newer, agile suppliers. That’s why flexibility and resilience matter so much.
When you look behind the scenes of a global business operation, procurement strategy and supplychain management are usually top priorities, though theyre not always working in sync. This blog explores procurement vs supplychain strategy and looks at how aligning the two leads to operational excellence.
Excess inventory weighs down supplychains. This lean model doesn’t sacrifice speed, but instead thrives on it. The Shift to On-Demand Production Models Modern supplychains need flexibility more than volume. Teams used to working with forecasts and bulk schedules must adapt to real-time production planning.
As Procurementteams are tasked to do more with less in an increasingly complex and uncertain market, digitization has become a must. Procurement leaders have increasingly turned to Spend and Supplier Management platforms to improve decision-making, efficiency and collaboration. These results are more than just statistics.
In a world of ever-growing economic uncertainty, procurement is at the heart of organizations’ aim to drive efficiency and cost savings. This blog provides an overview of the most significant insights and best practices to make your procurementteams future ready.
Spend Matters asked him to revisit his earlier theme of creating a digital transformation roadmap and update those insights to reflect his current focus expansion into AI and human augmentation for the Spend Matters Digital Procurement Transformation Survival Guide. Heres what he had to say.
Global supplychains have always been complexbut in todays climate of rising geopolitical tensions and evolving trade policies, theyve become even more unpredictable. These changes impact the entire end-to-end supplychain, from planning and procurement to logistics and customer delivery.
It’s unlikely that the category-based approach to procurement will disappear anytime soon. Traditional waterfall methodologies give way to agile approaches. Project managers increasingly coordinate cross-functional teams across multiple time zones. These create transparent supplychain tracking mechanisms.
With international commerce increasingly digitalized and customer requirements continuing to grow, the demands on supplychain professionals to create frictionless, responsive, and cost-effective operations have never been higher. Supercharge your supplychain career through the SCMDOJO SupplyChain Learning Track Certification!
By selecting and developing the right suppliers and establishing streamlined, transparent communication with them, manufacturers gain the agility and resilience to respond to customer demands, rise to the top, and navigate disruptions more easily. That makes agility a foundational part of your manufacturing strategy.
4][5] Supplier Portals Enhance Collaboration: Digital supplier portals are now in use across 35% of procurement platforms. Nearly 50% of teams still report productivity slowdowns due to manual data entry, though 43% of leaders are prioritizing change. [4] The progress made in recent yearsparticularly in 2024set a strong foundation.
AI is moving from hype to reality, and the C-suite is under mounting pressure to deliver clear, ROI-driven strategies—especially in the high-stakes world of procurement and supplychain. This session will equip you with actionable insights to accelerate your AI strategy—and empower your teams to thrive alongside the technology.
White Paper: Projected Adoption of Hansen Fit Technologies (2025–2075) Abstract This white paper outlines the projected adoption trajectories and anticipated impacts of Hansen’s Metaprise, agent-based automation, and strand commonality models in procurement and supplychains.
Companies that excel in strategic sourcing achieve greater cost savings and procurement efficiency while ensuring supplychain resilience. With a structured approach, companies can transition to a more agile, data-driven procurement function.
It transforms raw procurement data into meaningful insights that support both short-term improvements and long-term strategic goals. Procurement analytics is the process of gathering, examining, and interpreting information about a business's purchasing operations. KPIs monitor procurement performance and analytics' effects.
Secondly come eProcurement, SupplyChain Collaboration, Invoicing, and Payments. These four steps constitute the downstream procure-to-pay part of the process. Optimizing source-to-paythrough digital transformation streamlines every stage of your procurement strategy, improving visibility, efficiency, and collaboration.
When Covid-19 first hit five years ago, retailers experienced the need for supplychain resilience. Now, as they build the agility and strength needed to respond to potential unexpected events, we can look to this period for guidance. A key flaw to emerge was that supplychains were murky. Nothing moved.
This step often begins with employees or departments noticing a shortfall, whether its raw materials for production, office supplies, or maintenance equipment. The need is recognized and communicated to the procurementteam to start the process. is made after the necessity has been determined.
What is the use of AI in supplychain management? AI helps optimize supplychain management by offering predictive supplier analytics , real-time tracking, and automation. How is AI transforming procurement & supplychains? How AI can forecast demand in the supplychain?
The Future of Procurement: The Bullish Case In this optimistic outlook, procurement undergoes a transformation driven by compelling external forces. Visibility and Transparency Heightened demands for supplychain visibility propel investments in technologies that enhance transparency across procurement processes.
Configurable and scalable: Every organization is unique, and Raindrop offers options for procurementteams to adjust workflows, dashboards and forms to capture specific information tailored to their needs, ensuring adoption and scalability as they grow.
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