fbpx

Procurement Trends You Need To Know In 2019

by | May 23, 2019 | Procurement and Contracting

As 2019 heads into its final stretch, it’s time to look at how procurement trends are tracking for the year. 

The world of procurement has undergone tremendous changes over the past couple of years. What’s in store for the rest of 2019? What should you be planning for? 

Here is the list of top 4 procurement trends: 

  1. Digital transformation

Procurement professionals came into 2019 with digital technology on their mind. According to research by The Hackett Group, the sector had aggressive plans to increase its use of digital tools and procurement-specific technologies, including cloud-based and data management technologies, over the next two years. 

So what’s happened so far?

Research shows that most organisations are significantly overestimating their digital maturity. In research by Forrester Consulting, only 16% of businesses had an advanced level of digital maturity in procurement, though 65% assessed themselves as advanced.

Takeaway: Procurement leaders have the opportunity to deliver a true competitive advantage for their organisations through digital transformation. Digital innovation and smart automation can reduce operating costs, improve accuracy and eliminate transactional work, freeing up staff time for more value-added efforts. 

Yet, you can only do this if you know where you stand in the first place. At the same time, procurement professionals would need to acquire the critical skills to succeed in a digital world and to remain relevant in the market. 

  1. Talent gap

With the move to digitalisation, and the role of a procurement professional always evolving, one of the biggest (and most alarming) procurement trends for 2019 is a talent shortage. 

A DHL report in the United States states that the ‘demand for supply chain professionals exceeds supply by a ratio of six to one’. And trends in Australia are following suit.

 The top factors driving the shortage are:

  • Changing skill requirements e.g. digital technologies and data analysis
  • Ageing workforce
  • Lack of development and learning
  • Perception that supply chain jobs lack excitement

Takeaway:Executives must be prepared to manage the changing skills requirements by investing in the right recruitment and training for their teams. One way to achieve this is to work with Transformed to customise in-house accredited learning and short courses to meet your goals.

  1. Cybersecurity threats

Another trend off the back of digitisation is the rise of cybersecurity threats. With the rate of cyber security incidents increasing by 33% each year, there is little doubt that cyberattacks will continue to threaten Australian organisations in 2019. 

The damage is very real: the total cost of a successful cyber-attack is over USD$5 million, or $301 per employee. The most expensive impact of a cyber-attack is information loss, which represents 43% of costs.

According to research, over 60% of reported attacks on publicly traded U.S. firms in 2017 were launched through the IT systems of suppliers or other third parties, such as contractors. Yet the same research revealed that many procurement professionals do not consider vendors’ cybersecurity capabilities to be an important factor in selecting top-tier suppliers. 

Takeaway:Procurement teams must proactively protect the sensitive personal and financial information belonging to their own organisations and to their suppliers.Procurement needs to look at measures to protect their systems, such as embedding cybersecurity measures in contracts with third parties, limiting suppliers’ access to IT systems, and training staff. 

  1. Rise of ethical procurement

Last year, the Australian Federal Government passed the Modern Slavery Act into law. At the same time, New South Wales introduced its own NSW Modern Slavery Act (2018). 

Hot on its heels, Anti-Bribery and Corruption reforms are expected in 2019. These newlaws are set to get tough on foreign corporate bribery, while placing increased responsibility onto companies to prevent it. 

This brings huge opportunities for businesses to reflect on the way they engage with their supply chains and mitigate the risks of corruption and slavery. 

Takeaway: If you haven’t already, now is the time to put strategies in place to act ethically.  Prepare for the Anti-Bribery and Corruption reforms and take the right actions to safeguard your supply chain and organisation from modern slavery risks. 

This includes education your team about the risks of non-compliance. Start with our online short course on the Modern Slavery legislation and what it means for procurement.  

Over To You

These are just some of the trends that will help shape procurement for the rest of 2019, and beyond. Procurement leaders must adapt to make sense of the new technologies, risks and opportunities. 

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

“Always good and prompt feedback from Michael”

John Logan
Draft Comps Services

“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

“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

“I think everything worked very smoothly”

Susan Mariott
Quality Home Design and Drafting Service

“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

“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

“Ease of delivery, completing from work”

Simone
Qld Health

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

Haylea Edwards
Efficient Living

“I am very satisfy with the study”

Eric Lam

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

Brian Peterson
Moreton Bay Regional Council

“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

“Easy to deal with”

Laura Lace

“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

“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

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

Ekaterina Sidorova
Lend Lease

“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.

“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

“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 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

“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

“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

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

Ekan
August 2018

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

Anna
Diploma of PM

“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.
Archives