Procurement has changed significantly in a relatively short space of time –the value creation and benefit contribution of the function has increased significantly, while total costs of operation have been rapidly reduced. Procurement functions globally will continue to deal with change, including the expansion of digital technologies, and the pace of this change will continue and quicken in the next three to five years.
The top quartile Procurement functions in 2020 will not simply have focused on making incremental improvements on what they do today. Instead, they will have proactively made fundamental changes to the way they operate including how they harness digital technology, the ways they manage and use data, and how they interact across the end-to-end value chain and with suppliers.
Successful procurement organisations in 2020 will: