Global Procurement Services: Top 6 Strategic Trends That Are Reshaping Companies
Global procurement service providers have been operating in the United States market for more than three decades now, and in that time the strategies and goals of such companies have changed dramatically. While at first these services were mostly facilitating imports and exports between the US and other countries, global procurement services companies now play roles in almost every level of business transactions, from manufacturing all the way to customer support and product delivery.
To help you find the right global procurement services provider that meets your company’s specific needs, here are six key trends shaping how procurement services are delivered to businesses today.
Trend 1 – Collaborative Sourcing
Recent research from IDC and TechSci Research have documented a sharp increase in companies actively pursuing collaborations with suppliers for long-term gain. The old way of thinking about procurement used to be about being winners by sourcing purely for cost.
Today, winning companies understand that true strategic value comes from creating strong relationships with their supply chain partners and building sustained partnerships with them. To get started on collaborating, try to focus on three main things: increasing visibility into your supply chain; increasing transparency with your vendors; and putting data to work for you when making decisions.
Trend 2 – Digitalization – Becoming A Digital Vendor
Up to 25% of a company’s spend is done through digital channels, and 80% of that is done with self-serve tools such as purchase cards, e-auctions and electronic catalogs.
As a digital vendor, your goal should be to give buyers an enjoyable experience on every touch point. Make it easy for them to select you by putting out bids at exactly what they need, setting up automated contracts and triggering alerts when something changes in a buying specification.
Trend 3 – Customer Insights and Experiences
As global sourcing companies continue to look for ways to differentiate themselves in an increasingly competitive environment, customer experience becomes even more important. With brand loyalty on a downward trend, businesses need to focus on what drives customer experience and then create solutions around those insights.
Engaging with customers through tools such as focus groups and surveys is vital for creating strong relationships and ensuring product offerings are relevant to current needs. To be successful in providing a superior experience, companies must not only meet customers’ expectations but exceed them by implementing innovative features.
Trend 4 – Transformational Supply Chain and Logistics Models
Shifting from traditional, transactional supply chain models to value-added approaches that provide relevant information on each step of a product’s journey through its lifecycle. This shift is driven by new regulatory requirements and consumer expectations.
According to Gartner, Rising demand for more transparency in global supply chains will require retailers to adopt a more active approach in selecting their suppliers, while at the same time building their own capabilities to better manage external risk and integrate outside forces.
Trend 5 – Innovation in M&A Strategies
Technology is playing a bigger role in mergers and acquisitions than ever before. With greater access to big data sets, analytics tools, collaboration capabilities and more, companies have everything they need to make smart decisions about which businesses to buy or build. While processes for evaluating deals remain largely unchanged (at least for now), technology is enabling organizations to select targets with far more intelligence than ever before.
In fact, recent research from McKinsey shows that most of today’s top-performing global corporations use big data to guide their M&A strategies. This means that if you want your company to be competitive in 2022 and beyond, it might be time to start investing in business intelligence solutions and other technologies that can help you acquire new assets—and integrate them into your organization—more effectively than ever before.
Trend 6 – Collaboration Between Service Providers
As procurement departments become more specialized, global business leaders are working more closely with service providers. This trend is all about increased collaboration between buyers and suppliers to drive down costs and identify new opportunities for growth in an increasingly competitive market.
Collaboration has long been a staple of B2B sales, but it’s now becoming a key feature of how businesses buy services. With so many options available today—and so much at stake—it’s no longer enough to simply go through vendors one by one; companies need tools that allow them to manage multiple vendors at once.