Tag Archives: procurement 2030

Procurement 2030: Preparing For The Revolution

Only 7 per cent  of procurement functions are perceived as ‘maturing’ in terms of digital transformation and a mere 38 per cent of teams have the capability to meet the challenges of Industry 4.0. Find out how to address these challenges in our latest report: Procurement 2030: Level 2.

Without careful preparation, revolutions fail.

From Spartacus’ slave rebellion in Ancient Rome, to the Satsuma Samurai uprising in Imperial Japan, to the Boxer rebellion in colonial China, history has shown that a revolution cannot be powered by enthusiasm alone. Successfully landing a change of any significant scale requires strategy, planning, and no small amount of determination to see it through.

The Fourth Industrial Revolution (Industry 4.0) is now upon us, and its effects can be seen in the assembly lines and offices of companies around the globe. Game-changing technology such as 3D printing, the Internet of Things (IoT), and Blockchain will super-charge the supply chains of many organisations, but need to be implemented with care.

Level One of the four-part “Procurement 2030” series by Procurious and Michael Page UK examined the forecast for procurement and the threats and opportunities facing the profession. The latest report, Level Two, shifts the focus to the practicalities of procurement and supply chain management’s evolution – against the backdrop of a technological revolution.

Our survey of 590 global professionals revealed that there is a great deal of preparation to be done before the majority of procurement functions will be equipped to take full advantage of Industry 4.0, particularly in the areas of strategic planning, creating a roadmap that gives priority to the most impactful elements of the digital revolution, and (crucially) having the right talent on board.

Download Procurement 2030: Level 2.

Low Maturity

Our survey revealed that only 7 per cent regard their procurement functions as ‘maturing’ in terms of digital transformation. The factor holding back this maturity would appear to be a lack of support from the wider business, with comments such as:

  • “Management is not interested in a digital transformation journey.”
  • “Our desire to transform is not matched by the business, who do not see the value.”
  • “Digital transformation of procurement is not even on the agenda.”

Some steps that might be taken to improve this situation include:

  • Do your homework and build a rock-solid business case that supports digital transformation. Alarmingly, 43% of survey respondents indicated they do not have a formal digital transformation strategy.
  • Ensure you align each step of your digital transformation journey to an enterprise-level objective.
  • Find a sponsor (a senior person in the organisation) to support your proposal.
  • Have the courage to take a risk – have confidence behind your ideas and be prepared to stand up for them.

Procurement’s Kryptonite

What do you regard as procurement’s greatest weakness? This research reveals that a narrow focus on cost savings and a lack of influence in the wider organisation are two stand-out factors that are holding procurement back.

HSBC CPO Jan Fokke Van Den Bosch shared his opinion of procurement’s greatest weakness in this video interview.

What’s Your Priority?

Moving systems into the cloud and leveraging big data analytics are by far the two most likely technologies to be implemented within the next 24 months by surveyed organisations.

Although AI and cognitive procurement are perceived as two of the most difficult-to-implement technologies, they are also expected to have the greatest impact on organisations. Other high-impact technologies include big data, cloud computing, and robotic process automation.

When prioritising these technologies to create a digital transformation roadmap, take the following factors into account:

  • Enablers – which technologies need to be implemented first to enable others to work successfully?
  • Impact – which technology will make the greatest positive impact on your wider organisation’s goals?
  • Costs and benefits – what is the long-term ROI on this investment? What are the benefits beyond cost savings?

The Right Team For The Job

Our survey-takers believe that on average, only 38% of their colleagues heave the capability required to meet the challenges of Industry 4.0.

For procurement functions on the cusp of a major digital transformation, now is the time to examine the team’s attributes and capabilities and, if necessary, bring in fresh talent with the ability to drive change and reap the full benefit of enabling technology.

While digital skills are a must, candidates should be screened for attributes such as a willingness to embrace change, agility, and the flexibility to make use of new behaviours and technologies.

Another solution to the perceived capability gap is to embrace the gig economy. The future of work will be project-based and outcome-focused. From the employer’s perspective, it will become increasingly important to bring in the right team for the right project.

A higher percentage of contractors in procurement will enable project managers to scale up and down as necessary, with results revealing that employment of contractors is expected to nearly double by 2030.

Interested In Learning More?

This content-packed report also contains links to relevant thought-leadership from Procurious and Michael Page UK,  including videos, blog articles, podcasts and webinars.

And don’t forget … parts 3 to 4 of the Procurement 2030 report will be released in the coming months!

  • Part 3: Human vs AI Skill Sets: October 2018
  • Part 4: Procurement Makeover: November 2018

CLICK HERE TO DOWNLOAD PROCUREMENT 2030: LEVEL 2.

Here’s What Procurement Will Look Like By 2030

92 per cent of respondents believe that by 2030, procurement will look very different to today’s profession. But what exactly will this evolution look like, and how do we get there? Download the Procurement 2030 Report!

Procurious and Michael Page UK recently surveyed 590 procurement and supply management professionals from around the globe to uncover the facts about the outlook for the profession, the threats and opportunities facing procurement, and perceptions of procurement. Here’s what we uncovered in our new report, now available for download.

Procurement is expected to evolve

All but 8 per cent of survey-takers roundly rejected the suggestion that procurement in 2030 would be similar to today. This stands to reason, given the transformation the profession has undergone in the past 10 to 15 years from back-office function to an influential and highly-visible part of the business that’s increasingly focused on driving innovation and generating value.

Here’s the result when we asked respondents what they expect procurement will resemble in 2030:

Just over half of our respondents believe procurement will evolve into “an agile group of strategic advisors”. But what does this actually mean? It could refer to Agile (with a capital A) work practices that are sweeping through many of the world’s top organisations, or perhaps it means that procurement will evolve into a high-value team of experts who will move around the business to give advice at the highest levels and solve specific challenges.

To use an analogy from the gaming world, this evolution is a bit like moving from a Space Invaders-style “mission-control” approach where you are dealing with a never-ending stream of issues from the bottom-up, to the approach taken in 21st-century games such as Fortnite or Call of Duty, where a highly cooperative group of professionals with different areas of expertise parachutes into a certain area to solve a problem before moving on to the next mission.

The word “strategic” is also key here. This report discovered that an incredible 49 per cent of procurement’s current workload is regarded as “tactical”. Filtering by role and seniority revealed that:

  • Survey-takers with “junior” roles identified 59 per cent of their workload as tactical in nature.
  • Analytics professionals have the most tactical tasks (57 per cent), followed by supply chain professionals (56 per cent).
  • The tactical workload of category managers sits at 46 per cent.
  • Concerningly, 57 respondents who identified as Chief Procurement Officers indicated that 40 per cent of their workload is tactical on average, despite having what is regarded as a highly strategic role.

It’s also worth noting that two persistent concerns about the future of procurement have also been dismissed by survey-takers. Only 3 per cent believe the profession will be completely outsourced, while 9 per cent believe procurement will be completely automated by 2030.

Positive forecast

Procurement professionals remain optimistic about the profession, despite the rapid development of ever-smarter AI and media coverage of white-collar job losses to automation. In fact, optimism about the future has climbed by four points since this question was first asked in 2017.

Similarly, job security is relatively high. Only 9 per cent of respondents report a lack of confidence that they’ll be able to keep their role of the next 24 months.

While the profession itself is confident about its future, the task at hand is to broadcast this positivity to the wider organisation, other functions, and to suppliers. Building upon the brand of procurement will enable us to:

  • change the face of the profession from the inside out
  • overcome outdated stereotypes, and
  • educate others on the full value-offering of the profession.

Threats and opportunities

When we asked survey-takers to nominate the greatest threats and opportunities for procurement and supply chain management, we were surprised to discover that the top two threats are also seen as the top two opportunities.

  • “Not keeping up with technological advances” is seen as the biggest threat, while technological advances are also seen as the number one opportunity.
  • Being unable to recruit and retain top talent is seen as the 2nd-biggest threat, while recruiting and retaining top talent is also seen as the 2nd-biggest source of competitive advantage.

Organisations must therefore retain their focus on investing in top talent, even while they are investing heavily in technology. It also follows that procurement functions with leading-edge technologies will be more attractive to top-tier candidates.

Prisoners of our own perceptions?

We know that the profession wants to evolve into an agile group of strategic advisors by 2030, but what’s holding us back? In one word: perception.

  • Less than a quarter of respondents say their organisations have a strong understanding of procurement’s value, while 21 per cent have “little understanding” of procurement’s value-offering.
  • Procurement’s own perception of its purpose needs to change if it is to expand its value offering and transform into strategic advisors and commercial leaders. At present, 38 per cent believe cost reduction is procurement’s main purpose, followed by risk management.
  • The good news is that by 2030, the main purpose is expected to shift to two high-value tasks: “driving supplier innovation (29 per cent), followed by “driving sustainability” (25 per cent). Both of these revised areas of focus will also support procurement’s core capability of cost reduction.

CLICK HERE TO DOWNLOAD THE REPORT.

But wait, there’s more:

This content-packed report also contains links to heaps of relevant thought-leadership from  Procurious and Michael Page UK,  including videos, blog articles, podcasts and webinars.

And don’t forget … parts 2 to 4 of the Procurement 2030 report will be released in the coming months!

  • Part 2: Preparing for Industry 4.0: September 2018
  • Part 3: Human vs AI Skill Sets: October 2018
  • Part 4: Procurement Makeover: November 2018

CLICK HERE TO DOWNLOAD THE REPORT.

Procurement 2030: Makeover or Game Over?

The profession must evolve, but which way will it go? How can procurement give its value offering a makeover, and what are the indispensable human skills that will future-proof procurement careers … before it’s Game Over? Take the survey to help us find out!

10-15 minutes is all it will take to put yourself in the running to win a retro, cocktail-style arcade machine!

We need your input to discover:

  • What’s keeping procurement and supply management professionals awake at night as we hurtle towards the brave new world of Industry 4.0?
  • How is your procurement function preparing today for the digital revolution?
  • Which skills are most likely to be automated, and which skills are irreplaceable?
  • What does the future of procurement talent look like?

We’ve kept the survey to under 15 minutes – we know you’re busy!

Cool prize, right? But you’ve got to be in it to win it! The Procurement 2030: Makeover or Game Over survey is only open until Friday 22nd June. Participants will also receive a copy of the report summarising the findings of the survey.

CLICK HERE to take the survey!