5 trends that will shape procurement in 2023

It promises to be a very exciting 12 months for our profession. We kick off the New Year with a look at the trends that will shape Procurement in the year ahead. 

Last year was both a very disrupted and disruptive year for organisations and the Procurement profession. It would take a very brave person to bet against 2023 not having a major dose of more of the same, but, this time, Procurement is in a position to put itself on the front foot.

Disruption isn’t always a bad thing. It can be challenging, in a good way, and can spur people into action in response to the emergence of new trends and ideas.

In 2022, the key areas of focus in Procurement, thanks to these trends, included supply chain disruption, risk management, supplier management, and digitisation. 

While some of this will remain the same in the coming year, there are new trends that will likely cause more disruption, and ultimately shape Procurement for decades to come. 

Here are the top 5 trends that will shape procurement in 2023:

1. Changing geographical make-up of the supply chain

The world has seen plenty of geopolitical upheaval recently, and there will inevitably be more of the same this year. 

The changing face of politics and many countries moving towards a more internal focus has forced both countries and organisations to re-evaluate how they do business across borders.

As part of this, Procurement needs to decide how it’s going to build and maintain its supply chain to both take advantage of markets for new ideas and potential cost savings, but also provide the levels of service and quality that it needs to deliver.

The semiconductor market is a good example of this, with many organisations facing a crucial USA or China decision in the near future.

The profession also cannot rely on ‘low cost’ economies for savings, and instead should look at the wider picture when it comes to adding value.

This includes reviewing local sourcing or onshoring options that help to reduce transportation risks and logistics costs – even if these do come with a higher price tag.

2. The circular economy

The Circular Economy and Circular Supply Chains are new trends, but ones that are strengthening exponentially year-on-year. 

In the past year, this has been driven further by the rising costs of raw materials and sourcing challenges with traditional supply chain models.

Organisations are also looking to be smarter about how they source and use raw materials, reducing their inputs as well as their waste, while at the same time serving customer expectations on sustainability and ethical practices. 

Even in non-consumer markets there is an expectation from customers to show how companies are responding to this challenge. 

Procurement, as the gatekeeper to the supply chain, will have to respond to this focus and ensure their organisations remain on track.

3. The workforce and cybersecurity

The age of traditional office working may not be as dead as some declare it to be, but equally, hybrid working isn’t going anywhere. 

Leading organisations are using dispersed and transient workforces to meet requirements and get the best people at the best rates, without the expectation of having them physically sit in a single location.

The next generation of office workers will think nothing of working for a company in London while living in New York, or serving multiple time zones from their homes in Australia. 

However, this adds an extra level of complexity in Procurement when working in this way. 

How do you protect your assets, maintain security, and reduce risk, all the while dealing with complex supplier relationships and negotiations dispersed around the world? 

Procurement will play a key role in working with key stakeholders in the business to first put good cybersecurity measures in place, and also develop processes to ensure that this security isn’t compromised in the supply chain.

4. The evolution of procurement leadership

No longer content, or able (in some cases), to hide from the spotlight, 2023 will be the year where Procurement’s leaders are thrust firmly into its glare. 

Charged with serving the organisation while battling rising costs, inflation, and massively complex supply chains, leaders will have to grow themselves and their roles from where they are now to not only shape the profession, but bring it to the forefront for the business too.

This will include making key strategic decisions for investments in technological solutions to reduce transactional working and increase the profession’s ability to add value. 

The profession cannot evolve while clinging to the activities of the past, and leaders must be able to lead – not push, pull, or drag – their teams, or this change cannot succeed.

5. Training, training, and more training

Faced with the Great Resignation and a more mobile and unsettled workforce, companies have finally faced facts and come to the conclusion that they need to provide more access to quality training in order to retain their best people.

For Procurement, this means ensuring greater access and support for further education, professional accreditation in the shape of CIPS or ISM, exams, and personal and professional development. 

Professionals need to take advantage of this to increase their own knowledge and experience, and implement new and updated skills within their roles on a daily basis. 

This is a positive cycle for organisations and employees alike, with a clear mutual benefit to making this investment. And after a lean few years when it came to training budgets, now is the time for Procurement to catch up.

What do you think about our list? And what are the trends you see shaping Procurement in 2023? Let us know in the comments!

Find more Global View news, insights, and best practises at Procurious.com.