Recovery and Expectations
2022 was a year of recovery for procurement management, navigating numerous challenges, disruptions, and changes, from procurement roles to market price fluctuations. In 2023, executives and departments expect procurement to deliver measurable business value while ensuring overall organizational spending aligns with targets.
Sustainability
Sustainability is no longer just a future trend; it has become a core aspect of digital-era business management. Procurement must adapt to the “New Economy,” embracing technology, innovation, the green economy, and the 17 Sustainable Development Goals (SDGs) set by the United Nations. Consumers increasingly prioritize responsible suppliers and sustainable products, prompting procurement to adopt faster workflows, new products, and innovative services. In 2023, digital procurement will not only continue but may reach full digitization across all processes.
Data Analytics
The era of data extends beyond marketing and sales into all business operations. The rapid pace of global change generates vast amounts of data that humans cannot manually process. Procurement challenges now go beyond price considerations, requiring strategic procurement policies. Departments will play a larger role in managing organizational spend, supplier management, risk planning, and cost reduction. AI will assist in multi-dimensional procurement data analysis quickly, providing measurable insights and enhancing procurement confidence.
Digital Transformation
Digital transformation in procurement means using technology and electronic platforms to replace manual processes, reduce time, minimize errors, and optimize workforce efficiency. As business demands increase, sourcing and onboarding new suppliers require more time and effort. Electronic sourcing platforms will be critical tools to manage suppliers efficiently and respond to unpredictable risks.
Supplier Performance and Management
Procurement in 2023 and beyond will differ from the past. While price, reliability, and supplier selection remain key, deeper data analytics will create opportunities for business value and cost reduction. Access to detailed supplier information—such as purchase history, supplier ratings, past performance, service, logistics, and legal compliance—will be essential. Strategic supplier management will become a core procurement policy, reducing risks associated with deliveries, services, and broader socio-economic and environmental factors.
This shift emphasizes the importance of digital tools, data-driven decision-making, and sustainable supplier management to create measurable value and resilience in procurement.
