Future Trends in Purchasing

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The full text of this article hosted at iucr. Phillip L Carter holds the Harold E. Joseph R. Carter earned his D.

Robert M. Monczka is a research professor of supply chain management at Arizona State University; director of strategic sourcing and supply chain strategy development for the Center for Advanced Purchasing Studies; and professor emeritus at Michigan State University, where he earned his Ph. Thomas H.

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Slaight is a vice president of A. Andrew J. Kearney, Inc. Use the link below to share a full-text version of this article with your friends and colleagues. Learn more. The authors aimed at highlighting the most important areas of concern for purchasing executives. The research included trends of importance for organizations of all sizes, in all major industries — profit and nonprofit, private and public.


Procurement Experiences, Trends and the Future! - Supply Chain Game Changer™

At least three drivers have been identified to have influenced and are influencing changes in procurement philosophies, processes and procedures today. There are numerous definitions of globalisation and one such useful definition is:. The increasing interdependence across national and geographical boundaries of people, trade and commerce driven in large part by information technology and technology generally.

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From the perspective of procurement management, an important aspect of globalisation is global sourcing, which may be defined as:. Global procurement will be considered further in later units. As stated in the definition earlier on, globalisation is driven in large part by information technology. Information technology — comprised of computers, telecommunications and the Internet — has already had a significant effect on procurement processes and procedures.

By sharing information and processing electronic transactions over the Internet, suppliers are being converted into e-suppliers.

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E-business is a new source of sustainable competitive advantage. While e-commerce is the buying and selling of products and services over the internet, e-business is the strategic use of information and communication technology to interact with customers, prospective customers and partners through customer-centric multiple communication and distribution channels. Intense global competition has brought about the search for strategies that will yield sustainable competitive advantage.

Many models and approaches have surfaced in recent times and competitive advantage is sought via reduced inventories, lower costs, Just-in-Time, Total Quality Management TQM , supplier collaboration, time-based competition, lean and agile production and supply chain management. Actions Shares.

The Future of Procurement Technology in 12222

Embeds 0 No embeds. No notes for slide. Purchasing Future Trends 1. Bill Kohnen Initial Release V1. Things like shared services, call centers, and BPO sites become fully automated virtually eliminating this segment in 5 years.

Future trends of procurement every customer-centric industry should know

Purchasing Professional Compensation Trend and Forecast 0 20 40 60 80 Compensation Year Relative Compensation Real Salary Growth Back to Level there will finally be real salary growth Newer solutions developed specifically for a digital environment in the last year or two offer the most interesting options.

Legacy providers SAP, Oracle see this and essentially are creating brand new solutions Interestingly while in previous purchasing in emerging markets was on par or ahead of western purchasing it seems that just within the last year prospects for western purchasing pros have increased.

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In general western purchasing professionals seems to have a better understanding and are using more B2B solutions than counter parts elsewhere. In emerging markets there seems to still be a focus on traditional purchasing practice and skills with cost as primary focus for direct bill of material items. Yes — even as much of what we do becomes automated or touchless it will still be important to understand the process to be able to set up and manage systems. Also there is ample anecdotal examples of companies that have automate spend analysis or sourcing but still do not capture full value because they do not have people to interpret data, create plans or negotiate and put in place agreements.

Shared service and business process outsource based on cost will shrink dramatically as what they currently do becomes obsolete When this happens other organizations fills the void and purchasing is further relegated to non strategic items with less relevance. For the most part aside from force majeure events physical aspects supply chain continue to improve.

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