Journey So Far
With the development of business-to-business interaction from mere transactional relationships to ones enabling ever evolving competitive advantage, firms should no longer treat procurement as a back-office service but increasingly look to procurement as an embedded organisational capability.
The past few years have shown the impact of fully functioning, effective procurement teams distinctly impacting organisational resilience and survival. Procurement has been at the epicentre of managing major disruptions, including COVID, that organisations are still battling, from extremely volatile demand, constrained and unsecure supply, to managing unprecedented inflationary pressures. At the same time procurement has been taking on added organisational responsibilities by supporting third party risk, ESG, sustainability and strategic M&A agendas.
Leading procurement teams now cater to a broadening set of priorities shifting the dial from guardians of supply and cost to catalyst and stewards of organisational growth.
All this requires reshaping and developing procurement capabilities that are more resilient, more agile and more efficient to deliver sustained competitive advantage to their business.
View to the Horizon
Organisations need to look beyond their localised industrial and geographical challenges and chart a path to address the broader headwinds their organisations face. We’ve identified these as five major interconnected macro enviro-factors:
In addressing these challenges as critical business partners, organisations of the future need to incorporate and adapt to the macro trends impacting the future of work, which includes not only capabilities powered by technology, such as automation, cognitive decision making, deployment of AI and harnessing the power of data, but also the softer shift in the ways of working such as the power to attract and retain internal and external talent, human centred design, influencing relationships, social licence and hybrid work models.
Looking Beyond the Horizon
As the pace of change accelerates, high performing businesses need to evolve their procurement capability to be a source of organisational competitive advantage delivering greater value in an ever more complex environment. We see 7 key domains of focus for organisations as they seek to evolve the procurement function beyond cost reduction and supply assurance towards an orchestrater of broader value for the organisation:
The Time for Action is Now
Businesses realise the impact of procurement & supply chain now more than ever. Investing in enhancing these critical capabilities will ensure that your business is not only future ready, but ahead of the curve driving truly holistic success for your organisation.
Deloitte’s Global Supply Chain and Procurement practice brings together experts across industries and from around the world that can help you shape the future for your organisation. To have further conversations please reach out to our team.
Partner, Supply Chain & Procurement
+61 438 457 178
Senior Consultant, Supply Chain & Procurement
+61 3 9671 7233