Procurement 2023 – Big Trends and Predictions Report

Ardent Partners’ annual trends and predictions for procurement in 2023 are here!

Covering everything from the impact of inflation and ESG, hybrid working and AI, cyberattacks and de-globalisation, we have rounded up the key points…

Or download a handy ‘cheat sheet’ (PDF format)

🏠 Hybrid working is here to stay but, for many CEOs, the drive for productivity will mean an increase in mandatory office time

🌍 Global supply risk is impacting the majority of businesses with geopolitical uncertainty set to continue

👾 Continuing threat of Russia instigating cyberattacks on Western businesses, countries, political systems, trade routes and general infrastructure projects

⚔️ Following the US insurrection, political violence, uprisings and coups have entered the mainstream, de-stabilising economies

📉 International trade and investment continues to slow due to East/West tensions causing an acceleration of de-globalisation, e.g. more protectionist policies and greater immigration policies

🏝️ Supply chain problems continue especially where there is a reliance on offshore supply which will pose a new set of challenges including proliferation sanctions and export controls

📈 High inflation continues to be the enemy of CPOs driving high costs, creating greater uncertainty and increasing pressure on wages and budgets

🤑 Risk of suppliers choosing to flex their pricing power (on the back of inflationary costs) to make greater profits

🎯 Ability to hit CPO performance targets will be challenging for sourcing teams— effective strategies will be ‘should-cost’ models and embedded cost analysis to drive negotiation tactics. Download our quick guide to Strategic Price Negotiation

👀 Spend visibility is now a critical element of procurement as well as visibility into other areas of supplier relationships, e.g. supplier performance and contract compliance

🚨 US have averted a recession but EU and other regions face steeper challenges

💸 An increase in cost of capital (driven by high inflation rates) places more financial pressure on cost and budgets—making procurement even more important

🤗 More collaboration with Finance, particularly Accounts Payable, presents an opportunity to help combat high inflation and interest rates—supply management systems which automate the full source-to-settle process will bridge the gap between the two teams and unify their processes, priorities and efforts

💥 Category management will become a bigger priority with many CPOs developing deeper capabilities—solution providers that automate category management will see strong growth over the next few years. Get best practice advice and templates with Market Dojo’s Category Hub

🕊️ ESG to be an enforceable priority going forward with more than half of the average enterprise ESG footprint resting with suppliers—CPO is on the frontline in fighting to create a more sustainable supply chain. SIM Dojo includes an ESG Supplier Profile Questionnaire, watch our on-demand webinar

🌐 Final predictions go to technology…

• For ‘best in class’ CPOs, technology is their cornerstone
• The endgame of digital transformation is ‘digital intelligence’
• AI will make procurement practitioners smarter, more agile, and more valuable

For the full Ardent Partners Report, please click here for your complimentary copy.