Procurement Predictions for 2022 - Claritum's Top Ten

Published December 2021

  1. Focus on Margins

    There will be an increasing focus on margins, as inflation and rising costs impact across most sectors. Procurement oversight and automation will be the focus to ensure these margins are realised.

  2. Reducing Waste and Purchasing Errors

    Businesses will seek solutions for reducing waste and purchasing errors, as they seek cost reduction opportunities. A key part of this will be better automation of procurement activity across the organisation, which reduces the number of errors made and ensures that quantities of goods and services purchased across an organisation are effectively managed.

  3. Impact of COP26

    The Impact of COP26 on businesses, will see a renewed emphasis on sustainable solutions and knowledge of supply chain impacts across all purchasing categories. Marketing spend will get increasing focus in context of sustainable initiatives.

  4. Rising Energy Costs

    Energy costs, specifically, will drive rising costs of purchased goods. As a result, businesses will engage with their suppliers and seek to try to reduce costs for all parties through innovative approaches and automation that reduces costs.

  5. Impact of the Pandemic

    We cannot forget the continued impact of the Pandemic. This continues to affect business supply chains. Driving the need for more effective procurement automation for remote workers. Plus, seeking alternative suppliers closer to home or in markets with lower risk to supply disruptions: creating multiple selection scenarios for supply.

  6. Loyalty

    Loyalty is also becoming a key requirement, with the emphasis on building strong relationships. Procurement has to deal with two aspects here: building relationships with their suppliers (becoming a customer of choice) and also the loyalty of their customers associated with disruption of supply or cost increases. Automation plays a key role here to provide the business with critical information and ensure that costs are managed, and processes run smoothly from supply through to delivery.

  7. Risk Management

    There will be a renewed focus on recognising where there are risks to the business. Whether this is a risk of impact on profitability or risk of supply chain failures, the buck stops with Procurement. Effective reporting and access to critical supply data are essential.

  8. Reputation and Brand

    Reputation and Brand image will continue to be a specific focus. Though this focus will be extended to many more purchasing categories, beyond Direct sourcing. A decision to purchase from the wrong source can have wide-ranging implications for an organisation. Ensuring, through automation, that employees are purchasing only from approved suppliers is critical (whatever the category of supply)

  9. Talent Retention and Acquisition

    Talent retention and acquisition will not get easier in 2022. Procurement is under pressure and better utilisation of key knowledgeable people is critical. The use of experts, accessed through automation when required, is one key approach. However, increasingly, there is a need to automate some of the tasks of the experts themselves or at least provide them with automated tools: augmenting the experts using AI tools to make them more effective.

  10. Tighter Control of Marketing/Print Spend

    Tighter control of Marketing/Print spend, as profitability is impacted by economic factors, will focus attention on procurement outsourcing or more effective automation solutions for this difficult spend category. With the focus on specialist nearshore companies to reduce supply risks.

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