18 Must-Have Negotiation Skills For Procurement Professionals
Procurement Statistics – 24 Key Figures of 2023
Professional procurement managers sometimes hate talking about procurement statistics. And you’ll soon find out why.
For this article, we are going to try to take procurement statistics at a different level. We will understand how the figures stand for this year 2023 and learn whether procurement will remain strong in the coming years and the next.
After this article, you’ll probably come to love procurement statistics. Or not.
What is Procurement Statistics?
Perhaps one of the reasons why procurement managers do not like talking about procurement statistics is because it’s a whole new world full of mysteries. And numbers. And the numbers game tends to be very boring, especially for procurement managers who are more familiar with the negotiations and sourcing part of procurement.
Simply put, procurement statistics, also known as procurement analytics, is the process of collecting and analyzing procurement data to form meaningful insights. It also helps in effective business decision-making.
Back in the day, it is very easy to talk about procurement statistics because everyone had to deal with it at some point. Back then, procurement managers need to learn how to read data and analytics about procurement and sourcing. Nowadays, it’s all changed though. Procurement teams can simply buy or invest in procurement programs that analyze all data in a matter of seconds. Suddenly, procurement data is transferred and analyzed in just a fraction of a second; try explaining or talking about that part of the process!
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The Definition of a Procurement System
One of the key factors to understanding procurement statistics is by studying the procurement system.
To put it in simple terms, a procurement system is a detailed and automated process of buying goods for the company. The procurement system is also responsible for maintaining the inventory system of the company. These days, it is a program designed and bought specifically to help the company in how it spends its budget for procurement as well as managing the supplies that were bought.
Some of the other processes that a procurement system takes care of automatically are as follows:
- Generating purchase orders
- Sending purchase requisitions
- Approving delivered services/goods
- Selecting/managing vendors
- Reviewing invoices
The E-Procurement System Debunked
The e-procurement system may look intimidating and too advanced to people who are not very good with computers and other technical stuff, but to be honest, it’s not. The e-procurement system is the same as most procurement systems; its main function is to assist the procurement manager in automating and making complex tasks that would normally take normal person days or even months to finish.
Most e-procurement systems have automated programming that allows them to do market research, sourcing tasks, and other data-relevant work that is important for the success of the procurement process. As such, it is now the job of the procurement manager or analyst to make sure that the company gets a good federal procurement data system that can really help with automating the procurement process while following important company standards.
There are many e-procurement systems available today. All you have to do is figure out which procurement system works for your procurement process!
The 24 Key Procurement Statistics Figures of 2023
1. The United States President, Joe Biden, has signed an executive order that encompasses ambitious commitments which include 100% carbon-free electricity production by 2030 and net-zero emissions from federal procurement by 2050.
2. Procurement teams need to play an active role in making zero carbon emissions a reality and will find sustainability near the top of their agendas in 2023 and beyond.
3. Demand could lead to oversupply as the world continues to slide into a global recession.
4. According to a study by the State of Flux, building better relationships with suppliers is the best-mitigating action to prevent supply chain disruption for 2023.
5. Procurement teams will need to prioritize cybersecurity when evaluating suppliers in 2023.
6. Global spending on digital transformation is expected to hit $6.8 trillion in 2023.
7. In 2023, more companies will redefine the role of CPO entirely as it has evolved considerably in recent years.
8. After almost three years of adapting to the “new normal”, a report published in September 2022 by the Logistics Manager’s Index predicted that the world will return to “business as usual” over the subsequent 12 months.
9. According to a report by Verified Market Research, the global procurement software market will be worth $9.5 billion globally by 2028.
10. Blockchain technology is expected to be a major advancement for procurement in the coming years.
11. In 2023, as data analytics and automation become more prevalent, companies will no longer need large procurement teams to focus on transactional work. Instead, CPOs will need employees who are knowledgeable in strategic problem-solving and relationship management.
12. The procurement trend that uses technology and digitalizes operations will not only continue in 2023 but will accelerate. Thus, it is time to digitalize the entire process.
13. In 2023, AI will be able to quickly analyze purchasing data in multiple dimensions and will become an important tool for improving purchasing confidence.
14. Procurement is starting to enter its major shift from a transactional function to a significant business strategy.
15. Many businesses will need to focus on attracting and motivating high-performing procurement professionals in 2023.
16. 2023 will be the year that procurement professionals will finally accept that they will never eliminate the tail spend.
17. Consumers are increasingly demanding more sustainable options for their e-commerce deliveries and this will continue in the coming years.
18. The recession and inflationary environment have led 36% of businesses to extend their payment terms for their suppliers in the last 12 months.
19. 2023 will serve as a chance to reset, rebuild, and forge a path forward for procurement by implementing technology that delivers process excellence, drives innovation, and strengthens procurement teams to do more despite fewer resources.
20. A survey by Procurious revealed that 32% of procurement teams admitted to cutting corners with their sourcing criteria and suppliers to secure supply.
21. In the same survey, an alarming 81% of procurement teams are feeling pressured by executive teams to respond to challenges more quickly and effectively.
22. Many predict that the global supply chain will not be back to pre-COVID operational norms until 2024.
23. A survey by Gartner found that 78% of CFOs will either increase or maintain enterprise digital investment through 2023 despite the inflation.
24. 2023 is a year full of second chances to get things right and prepare for the next great disruption in procurement.
+ What are procurement statistics?
Also known as procurement analytics, procurement statistics are data gathered for procurement usage.
+ What is procurement analytics?
Procurement analytics is the study and collection of data needed for a procurement process to work.
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