While the procurement industry is consistently evolving and shifting, 2021 begins after a truly unprecedented year. In 2020, Chief Procurement Officers and their teams were forced to face massive disruptions, extreme threats, and entirely new challenges brought on by the COVID-19 pandemic. By and large, procurement leaders worked valiantly to ensure business continuity, build supply chain resilience, and prepare their enterprises for the next economic phase. Against this backdrop, procurement has never been more important to business operations and business results. We continue with some key procurement predictions for the year.
Big Trend – A Change in CPO Focus (to Cash Impact and Savings)
Before the Coronavirus, a majority of CPOs were focused on driving proactive initiatives that supported growth, quality, and expanding their team’s capabilities, reach and overall impact. According to Ardent’s 2020 research, more teams were focused on driving a digital transformation, improving processes, and increasing agility than any other projects.
Once the pandemic hit, business needs immediately changed forcing CPOs to shift their focus to: (1) prioritizing cash management, (2) increasing savings, and (3) improving supply chain visibility. In times of great stress and uncertainty, businesses revert to their more basic “selves.” This means that right now, “cash is king” and savings is a top priority. In response, sourcing teams are increasing sourcing activity and the number of RFPs they are bringing to market.
RELATED RESEARCH
Procurement 2021 Big Trends: Technology is the Linchpin to Procurement Operations
Procurement 2021 Big Predictions – The Vaccines Work and Countries Slowly Gain Control over COVID
Procurement 2021 Big Predictions – Global Economies & CPO Control
Procurement 2021 Big Predictions – Procurement Performance & Global Supply Chain
Procurement 2021 Big Prediction – Big Data & AI Make Major Impacts
