fbpx

7 Procurement Trends to Watch in 2023

by | Oct 7, 2022 | Latest News, Procurement and Contracting

1 Procurement’s operational revolution

Two-thirds of CPOs surveyed in the 2022 Procurement Leaders CPO Compass said they expect supply chain volatility to persist. So for organisations to survive and stay competitive, procurement must become more agile, connected, nimble and collaborative in 2023. 

For some, this means automating processes to save time, free up skilled resources, and reduce the risk of mistakes. Others will put a focus on supplier collaboration. 

2 Supply chain tier mapping

Supply chain tier-mapping and transparency has been a top concern in the past year, and will no longer be a ‘nice-to-have’ in 2021. 

As supply chain complexity grows, so too do the tiers of supply networks, and it is becoming increasingly important for organisations to have visibility of their supplier network beyond tier one. 

That’s the only way organisations can react quicker in response to the disruptions (like a pandemic), better allocate resources, and foresee issues in the other tiers of their supply chains. 

3 Prioritise responsible spending 

Procurement is increasingly being recognised as the function that can make an impact on organisational goals, such as sustainability, diversity and inclusion. 

In the 2022 CPO Compass survey by Procurement Leaders, almost four-fifths (79%) of procurement officers say they will seek to improve supplier diversity and inclusion by tracking their expenditure with Tier-2 diverse suppliers in 2022. What’s more, 62% plan to revise supplier selection criteria to enable more diverse enterprises to win business. 

In Australia, there’s even a “Supplier Diversity September”, a month-long initiative held annually by Supply Nation to promote the benefits of supplier diversity and to showcase the range of Aboriginal and Torres Strait Islander businesses across Australia.

It’s not only diverse suppliers that procurement will increasingly focus on in 2023. Sustainability has never been more important. Research by the Hackett Group shows supporting corporate sustainability goals is a top agenda item for procurement – by 2023, 92% of enterprises expect to have sustainable procurement programs in the areas of economic development, social well-being, and environmental protection.

4 Procurement talent in demand

Demand for talented procurement professionals will continue to outstrip supply. 

Almost half (46%) of employers say that the Great Resignation will accelerate this financial year, according to the Hays Salary Guide FY 22/23. This is good news for procurement professionals who will have more power in salary negotiations. In fact, the Hays report shows 56% of employees will have more confidence to ask for a pay rise this year and 65% of employers have offered higher slides than planned.

The top five jobs that employers need to fill are:

  1. Contract administrators
  2. Procurement specialists
  3. Category managers
  4. Contract managers
  5. Procurement managers

This means it’s a great time to get into the profession, develop your skills and enjoy a rewarding career. 

In this climate, employees are recognising the need to continuously learn. In the Hays Salary Guide, 60% say that learning or developing technical skills and 41% learning soft skills, is important to them in their career for the year ahead.  

5 Spotlight on supplier relationships

The focus on supplier relationships is not new – at the start of 2022, more than 66% of CPOs were prioritising supplier collaboration and other broader value-generating activities. We can expect this to intensify in 2023 as procurement professionals look at how they can build strategic, dynamic relationships with suppliers. 

For some this will mean investing in procurement technology. Some 57% of procurement officers say they plan to invest in supplier performance management solutions this year. 

6 Focus on total cost of ownership

Australia’s inflation is set to peak at an annual rate of 7.75% by the December quarter of 2022. But the damage will already be done for businesses. The challenge of high inflation, in addition to the war on talent and supply shortages, means the cost of business is going to continue to rise in 2023. 

In response, procurement professionals will source with a total cost of ownership mindset. Rather than focusing on the initial cost to purchase, it will be the ongoing support and operation that influences purchase decisions. 

7 AI and data analytics to bring business value

The sophisticated, AI-powered technology that now exists can help procurement functions drive fair, competitive, and sustainable self-serve sourcing in 2023.

How? By helping illuminate the insights hidden in data.

More organisations will be investing in existing AI and machine learning technology that allows them to collect and analyse valuable real-time data to make informed decisions, identify opportunities, and address challenges before they become risks. 

For example, with machine learning, humans can train algorithms to detect patterns in spend, which  remove dull work of repetitive new spend classification, and algorithms can be programmed to automatically detect new and interesting patterns in supplier relationships – all of which can help procurement create far more impact on a company’s profitability. 

These are just some of the trends that are set to shape procurement in 2023. But as the recent years have shown, you can’t predict everything! That’s why it’s important to stay up to date with the latest trends and shifts, and stay agile and flexible in your approach. 

One way to achieve this is to keep yourself and your team on the leading edge with relevant training and development. Talk to Transformed to find out how we can help.

Recent Blog Posts Testimonials

“I found the course easy to follow and navigate through. I would recommend this course to others”

Ekan
August 2018

“I also want to take the opportunity to thank you for all your help during my studies. I think your training company is very professional and I would endorse you and Transformed to anyone looking to study distance learning”

Doug Madarovski

“Learning – I have now fine-tuned my existing skills”

Brian Peterson
Moreton Bay Regional Council

“The most practical and well organised course I’ve been involved with, perfect for anyone with a demanding full time career and family commitments. My facilitator was extremely helpful and being part of the construction industry applied a very focused approach to the course content which assisted me in completing my studies, Would strongly and have already recommended Transformed to those looking to complete their Cert IV and Diploma in Building and Construction. Thanks for all your efforts and support.”

Aleks Petrovic
Cert IV and Diploma in Building and Construction Student

“Easy to deal with”

Laura Lace

“The self-paced learning it allowed me to work whilst studying”

Haylea Edwards
Efficient Living

“Working at my own pace online and the response time to emails and responses were always great”

Ekaterina Sidorova
Lend Lease

“I am very satisfy with the study”

Eric Lam

“I’m extremely impressed by The Cert IV in HEES delivered by Transformed. It is a fantastic, relevant, and interesting course with great content. The study materials and assistance have been exceptional. Thanks again to Transformed for their support”.

Matt Wade
Cert IV in HEES Student – April 2022.

“Just wanted to say thank you so much for offering such a great course, I have really enjoyed studying my Certificate IV in Home Energy Efficiency and Sustainability with Transformed”.

Melanie
Cert IV in HEES student, July 2021

“Don has been a terrific teacher and very prompt with feedback throughout the whole diploma, which has been great!”

Anna
Diploma of PM

“Phenomenal course to understand contract management in the best way possible. I am working as a Procurement Manager and never understood contract part completely but this course helped me to understand key points of contract management. Thanks to author for creating this wonderful course. ”

Nitin
Student - Introduction to Contract Management - August 2021

“I think everything worked very smoothly”

Susan Mariott
Quality Home Design and Drafting Service

Completing my CPP41119Certificate Home Energy Efficiency & Sustainability course has been a significant step in my professional journey.
Thank you for your support and guidance and every single subject in this course you have taught me

Amir
Cert IV HEES student - April 2024

“The course is really well organised, your videos and zoom meetings were extremely helpful, the platform functions perfectly, your response time to queries and questions is always prompt and overall it is just been a wonderful experience”

Melanie
Cert IV in HEES student, July 2021.

“…I originally enrolled in Transformed’s Diploma of Project Management on the basis of their flexibility. ..As I subsequently discovered, Transformed’s approach extends even further to include ‘one on one’ coaching sessions… and adjusting the training to fit in with the client..”

Michael Irwin
Austrade

“I want to thank you for providing that encouragement and feed back at appropriate times. You make me and I’m sure all students, feel special and like we are getting personal assistance, which I have received. I don’t know how you manage all that you do but you do it well. Thank you”

Darrell
Cert IV in NatHERS Assessment student

“I am so appreciative of you and Transformed for your flexibility and support- THANK YOU”

Louise Anderson
Cert IV in P & C student - May 2020

“Thanks for your support over the years and I look forward to doing more courses at Transformed in the future”.

Gerard
Cert IV in HEES - March 2022

“I engaged Michael Young from Transformed to assess me for the Australian Institute of Project Management Certified Practicing Project Manager. I wanted to be certified as I wanted to verify that the skills and knowledge was in line with industry best-practice. At first it seemed a bit daunting, however, Michael made the process very easy, providing templates for references and self-assessment as well as providing a list of the project management documents I would need to provide as evidence. The assessment interview was very relaxed and more like a conversation than an assessment, which brought out the best experiences to evidence my capabilities. Because of Michael’s current government security clearance, we were able to look at specific of particular projects, rather me than having to spend a heap of time sanitising documents. Since the assessment, I have been successful in gaining a promotion..”

Mike McCarthy

“Just wanted to say thanks for putting up with me and getting me over the line!! Which I know was a bit difficult with no background in the industry!! Thanks very much and I look forward to starting my business and conquering the world as an Energy Rater!”

Laura Lace

“Always good and prompt feedback from Michael”

John Logan
Draft Comps Services

“All round I’ve been really impressed with how professional everyone at Transformed has been”

Anna
Diploma of PM

“The excellent and prompt communication from my assessor”

Cert IV in NatHERS Assessment student

“My assessor was absolutely fantastic and I couldn’t have achieved this without her encouragement and guidance’.

Simone
Cert IV in Procurement & Contracting - March 2022

“Ease of delivery, completing from work”

Simone
Qld Health
Archives