Many of us in the supply chain may have missed this, either because we thought it was just marketing or because busy days left no time for VISION 2020. Here are the most interesting points that may capture the attention of procurement professionals:

In 2020, transactional spend management will be minimal. Strong businesses must ensure that processes, tools, skills, relationships, templates, and performance metrics are embedded in the business lines, and workloads are appropriately aligned. As workload levels decrease, Strategic Business Units (SBUs) will engage more frequently with suppliers. These experts will develop strategies that help the business organize, design, and execute processes, including managing outsourced or internal procurement, ensuring compliance, driving innovation, and controlling costs.

The focus will shift from merely cost savings to profitability, which can be achieved through cost reduction or increased revenue.

  As markets grow in value, procurement professionals skilled in sourcing, technology, and automated procurement will increasingly work for third-party service providers, because in 2020, many current procurement and sourcing activities will no longer be handled internally. Non-core tasks will be outsourced to external organizations.

This means that in 2020, procurement tools will become user-friendly, enabling even untrained personnel to perform procurement and sourcing tasks according to defined processes. In many cases, systems will operate with minimal human intervention, such as:

– Sourcing based on market fluctuations and pre-defined negotiation strategies

– Orders triggered by minimum/maximum stock levels

– Invoicing, reconciliation, and payment

  People will no longer need to know how to write purchase orders; instead, they will focus on building supplier relationships that provide continuous strategic advantage in their market. Businesses will operate automatically to ensure that the required information is always available.

VISION 2020 anticipates a loosely connected network, contrasting with the tightly knit functional roles of professionals dealing with embedded suppliers in strategic business lines. Communities and processes must continuously adapt and create new roles in response to changing needs.

  Currently, procurement treats all products the same in terms of workload and supply chain design. In 2020, supply management experts will identify and evaluate specific customer demand from across marketing, R&D, operations, and other organizational areas. Instead of treating all customers and products equally, supply chains, procurement processes, and workloads will be tailored to specific customer needs and products.

  In 2020, procurement will become even more valuable, participating in strategic planning, identifying opportunities for implementation, and delivering value through mergers and acquisitions. While maintaining a focus on the physical supply chain, procurement will also increasingly connect with the financial supply chain, including cash flow, working capital, flexible discounting, supply chain financing, and more.

Data will be better, faster, more networked, forward-looking, and available when needed.

The traditional focus on price negotiation will be replaced with an emphasis on:

– Supplier history

– Innovation from the supplier base

– Segmenting key suppliers based on both risk and return

  Procurement has spent the past decade looking backward, analyzing spend from last year or supplier performance over weeks, months, or quarters. The coming decade will leverage data and models to look forward.

  Organizations will increasingly rely on suppliers for products, services, talent, expertise, and new ideas. Without one-size-fits-all solutions, suppliers will develop these solutions themselves. Today, suppliers may be asked to support existing designs or help improve processes that have been in place for a decade. They will need to be more involved, moving from a “buyer-supplier” relationship to an integrated supplier network, enabling better coordination and creating a linked roadmap for business and industry innovation.

  In 2020, smartphones, tablets, embedded chips, and yet-to-be-imagined devices will create a highly mobile work environment for procurement and suppliers. Take advantage of these technologies. Buyers and suppliers will rely on digital trade networks and communities to discover, connect, and collaborate quickly and easily.