As we close the books on 2019 and set our sights on a new year and decade, some clear supply chain and procurement predictions for the next 12 months are beginning to emerge. Here are four that electronics buyers should keep an eye on over the next few months:
1. Data and analytics will become even more proactive. Originally used with the intention to drill down into your operation, data and analytics used to work “reactively”. And though this was (and still is) tremendously helpful, Spend Matters® UK/Europe says it’s nothing compared to the benefits that come from proactively using data and analytics. “We anticipate using data in a more advanced, predictive way, going forward—not only to drill-down, but to alert-up.”
2. Procure-to-pay ecosystems will come of age. As businesses become more modern and as new tech businesses and startups continue popping up left and right, they’re going to need more holistic P2P ecosystems to manage their procurement operations. “It’s unrealistic to think a one-size-fits-all approach is feasible for growing organizations,” Spend Matters points out.
“It’s time to adopt an integrated approach, a P2P ecosystem that provides a central location for all the unique plug-ins and applications that best fit your organization.” It also notes that over the next 3-5 years, the P2P products that will win in this new market will be open, dynamic, and built with artificial intelligence (AI).
3. Supplier risk management moves front and center. This isn’t a new topic by any means, but more companies are worried about supplier risk management and integrating it into their procurement processes. After all, your suppliers are an extension of your brand and in that way a direct reflection of your business’ own beliefs.
“It’s not about just getting the cheapest suppliers anymore,” Spend Matters points out. “There’s too much risk associated with thinking merely in terms of dollar signs when it comes to suppliers.” It suggests open dialogues and continuous research into how sustainable, diverse, and ethically upstanding a supplier is, as well as what reputational and business risk a supplier can potentially cause.
4. More automation, artificial intelligence, and blockchain ahead. In “Top 10 Predictions for Worldwide Supply Chains in 2020”, IDC’s Simon Ellis explores the impact of IT investments on the future supply chain. He predicts that by the end of 2020, half of all large manufacturers will have automated supplier and spend data analysis, resulting in a 15% procurement productivity gain. The following year, Ellis says half of all manufacturing supply chains will have invested in supply chain resiliency and AI, resulting in productivity improvements of 15%.
Finally, to lessen stress on the service supply chain, he says that by 2023, 25% of OEMs will leverage blockchain to source spare parts, improving accuracy of usable parts by 60% and lowering expedite costs by 45%.
