For nearly a decade, our team gathers to discuss and review the prior year and lay out plans for the new one. We review, in depth, the key findings and trends from the prior years’ market research studies. We also discuss the highlights and takeaways from the previous year’s briefings delivered by solution providers, consultants, and investor groups.
Our goal is to develop a list of the big trends impacting procurement today as well as a list of predictions for the industry this year and share them in a published report.
While our promotions for the formal report – Procurement 2022: BIG Trends and Predictions – have ended, I wanted to share some of the highlights with you here.
BIG Trend #3: Everything Depends on the Supply Chain
More has been written about the supply chain in the last 2 years than in the entire history of humankind. Full Stop. According to these reports, the supply chain is now “central” to seemingly everything, which is very, very, very cool for procurement. Procurement’s proximity to the supply chain therefore makes the function more important to business.
Conversely, the supply chain (and therefore procurement) is also to blame for everything. When stores have no bleach products, blame the supply chain. A spike in gas prices? Yep, blame the supply chain. It costs how much to rent a car to drive to Cleveland??? Hmm, must be the supply chain! The truth of the matter is that supply chains have become a catchall for the analysts/media unwilling or unable to understand the underlying truth that while supply chains are critical, the reasons why supply, pricing, and other issues arise are complex and generally unique to the specific situation (as readers of this report already know).
Five Supply Chain Predictions
- Internal support for procurement will reach an all-time high. In 2022, more executives and business leaders have their performance reviews and bonuses linked to what happens in the supply chain. Anytime someone is professionally (and financially) vested in the work of procurement, they provide more attention and support.
- There will seem to be more supply chain disruptions in 2022. With greater media coverage of global supply chains, there will be more reports about supply chain disruptions this year than ever before. All the “usual suspects” will be guilty of causing problems including: Demand driven (lack of capacity), Technical, Logistical, Weather.
- Reminiscent of the Summer of the Shark when US media overhyped shark attacks, the media will chronicle all of the major and not-so-major mishaps. Whether the actual number of issues is greater than in previous years or not, it will feel like 2022 is the worst year ever.
- “Strategic” suppliers will grow in numbers and importance. Given the need for more secondary sources of supply, procurement teams will work with a growing number of strategic suppliers. In many industries, the “bargaining power of suppliers” will increase.
- As more customers align their wallets with their politics, Environmental, Social, and Corporate Governance (ESG) initiatives will continue to gain more support and attention from executives; procurement will play a key role in ESG for most enterprises.
- Nonetheless, many supplier diversity initiatives will stall in 2022 primarily because they lack clearly-defined goals and a strategy to achieve them.
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