We're in the midst of 2023, and that prompts us to reflect on the procurement trends that have shaped this year so far and will likely continue to define the business landscape in the months ahead.
We look at four key procurement trends and examine their potential impact for the future.
Sustainable procurement refers to the integration of environmental, social and governance (ESG) factors into procurement and supply chain processes, taking into account the price and quality of goods purchased by a company.
Companies will continue to conduct ESG assessments for sustainable sourcing, but further action is needed. Companies should actively work with their suppliers to encourage collaboration on social, environmental and economic initiatives that lead to positive outcomes.
Below are some important topics related to sustainability:
In sustainable procurement, companies aim to source goods and services from suppliers with a proven commitment to sustainability. This includes evaluating suppliers on the basis of the three ESG pillars:
One of the biggest challenges we all face is global warming. Net zero means reducing greenhouse gas emissions to the lowest possible level and offsetting the remaining emissions through "offsetting."
Achieving Net Zero requires a global effort, which is why a growing alliance of countries, cities, businesses and other organizations are committed to achieving it.
A circular supply chain involves returning or treating used products or their parts so that they can be repaired, resold, remanufactured or recycled. This approach effectively reduces waste within the supply chain and promotes sustainability.
Industry 4.0, also known as the fourth industrial revolution or "smart manufacturing," refers to the progressive digitization of the manufacturing industry. It is characterized by important trends such as the increasing importance of data and connectivity, advances in analytics, human-machine interaction, and remarkable improvements in robotics.
Technologies used in Industry 4.0 include:
These digital technologies lead to higher automation, predictive maintenance, self-optimization of processes, and improved efficiency and responsiveness to customers.
Higher automation
Procurement automation software enables companies to streamline procurement processes, collect critical data, and make informed decisions.
Better data collection and processing will continue to play an important role in decision making as companies are tempted to develop ever more resilient and flexible supply chains.
Global supply chains are disrupted by turbulent geopolitical developments, labor shortages, rising material costs, higher interest rates and tighter lending standards.
Supply chain resilience refers to the ability to make a supply chain more resilient to unforeseen disruptions, unexpected events, and changing market conditions while making it more flexible in terms of response time.
The goal is to build a resilient supply chain that can withstand and recover from various challenges such as natural disasters, economic fluctuations, geopolitical issues, supplier failures, or changes in customer demand.
Supplier relationship management plays a critical role in procurement in today's dynamic business landscape. It encompasses the strategies and practices used to work effectively with suppliers. Some key elements for building such relationships are listed below.
Cooperation
It's about moving from a cost-based to a value-based mindset. According to McKinsey, fostering closer relationships between buyers and suppliers has the potential to increase supply chain resilience.
Risk sharing
Involves collaboration between customers and suppliers to identify, assess and mitigate potential supply chain risks to improve resilience and continuity.
Rather than placing the burden of risk on one party alone, both parties work together to identify vulnerabilities and determine strategies to manage and mitigate those risks.
Equalizing of power in relationships
Involves seeking a balance and distribution of power between buyers and suppliers. When the balance of power between buyer and supplier is balanced, there is a good basis for a cooperative relationship. A balanced power relationship does not inhibit the use of a cooperative strategy, but rather encourages it, whereas an unequal distribution of power and an imbalance in the relationship can prevent it.
The global manufacturing industry has undergone a major transformation and will continue to evolve, driven by factors such as digitization, supply chain disruption and the urgent need to address the climate crisis. In response, manufacturing companies around the world are being forced to reshape their business models.
A new era of collaboration is emerging, emphasizing the importance of shared industrial resources as a pioneering approach. This change is in line with a shared commitment to the well-being of our planet: the pursuit of zero waste.
At SPARETECH, we contribute to this vision with our expertise in spare parts management. As the leading data platform for industrial spare parts, we enable a more efficient, reliable and collaborative experience by promoting
Data quality
SPARETECH identifies and cleans duplicates and discontinuations in the material master, ensuring 100% transparency and data accuracy.
Automation
Our web application simplifies the automation of processes from identification to ordering machine and plant spare parts.
Sustainability
By creating transparency and efficiency, we help our customers to sustainably reduce inventories, costs and CO2 emissions.
If you want to optimize your spare parts data management, don't hesitate to contact us. We will be happy to help you and answer all your questions.