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What awaits the procurement industry in 2021?

by Bhargavi Nake

There is a famous quote by Buddha which says, “No matter how hard the past is, you can always begin again.” We need to hold on to this quote now more than before. The past year has seen more ups and downs than possibly any other year. The looming threat of the pandemic is anything but the past. However, the new year will mean new beginnings. 

It goes without saying that procurement will have a different and more refined approach in the coming year. Global supply chains have taken a hit. While countries are slightly opening their doors, it is crucial that procurement makes changes that prepare them for what is coming. 

We need to look at the positives 2020 has taught us. Our industry will have one of the great advantages this new year. Which is, the world will have learned to deal with the pandemic a bit better. Countries have studied this pandemic and learned how to combat it. Victory is far from achieved but industries are now better prepared to combat the virus. 

If we were to be realistic, the issues that led to the global supply chain crisis are not going to go anywhere for much of the year ahead. However, the current COVID crisis has developed resilience in industries and has opened doors to new ways of working. 

That said, let us look at what the possible trends could be for the procurement industry in the year 2021. 

  1. Delivering Value Beyond Savings

In our earlier blogs, we have always stressed the concept of Procurement beyond Savings. The current times demand procurement to deliver much more than just savings. This essentially means moving beyond bottom-line profit goals and achieving savings. While profits and savings are equally important, to thrive in these changing and competitive times is crucial. 

Here are a few ways in which organizations can deliver value beyond savings
– Supplier compliance and relationships
– Running a sustainable business
– Collaborating with suppliers to improve environmental and social impact

Over the coming years, delivering value more than savings will dominate the procurement world. It will involve adopting a more active stance toward sustainability and innovation in procurement. 

  1. More companies will be using procurement technologies

Increasing numbers of organizations are starting to shift to a more comprehensive digital procurement solution. With the pandemic, many companies in the industry have realized the importance of an eProcurement solution. Especially a solution that is compact and solves the basic needs of procurement. 

Organizations will put their faith in software that provides a holistic approach to eProcurement and makes their work easier. The more innovative and sustainable software will be the ones companies put their trust in. 

  1. Be prepared for regulatory changes

It is no surprise that the pandemic will continue to mess with the global supply chain. Countries will continue to impose lockdowns and supply chains will come to a halt. However, organizations will have to be on guard and be prepared for these regulatory changes. 

Companies will have to monitor international trade and regulations closely and be ready to make changes accordingly. 

  1. Innovation and Sustainability

Procurement teams in organizations must recognize the benefits of embracing sustainability goals. They will eventually benefit the company’s stakeholders, employees, and communities they serve. 

Procurement has immense scope for innovation and collaboration and organizations should create opportunities to provide value beyond savings.

Companies can collaborate with suppliers on product innovation and improvements. In the current crisis, it has become crucial for organizations to create long-term, meaningful relationships with key suppliers. 

  1. Relationships will become more important than ever

As the new year progresses, it will be critical for organizations to hold on to their key suppliers. Engaging with them through various communication channels is crucial. If there are any more COVID crises in-store, your company will need to make immediate changes. Hence, a strong relationship with your key suppliers will be important in implementing these changes. 

Nurturing relationships with your existing suppliers and developing new strategic relationships is certainly the way to go in the coming year. 

Conclusion

The year 2021 will be full of challenges and the COVID crisis is not going away anytime soon. Hence, it is better to be prepared for it than to wait and watch. 

Eyvo’s cloud-based procurement software can help your organization in the coming year. We have two decades of experience in the eProcurement industry. Moreover, our software works well with small and large organizations alike. 

Our eProcurement software can manage your suppliers swiftly and lets you focus on the more important aspects of procurement. This will help your organization focus on value creation and innovation. 

The new year will be full of surprises. We can only prepare for what is coming our way. Hence, choosing the right eProcurement software for your organization will be crucial. 

Contact Us for more information!