10 Procurement Trends for 2022 According to the Experts
Procurement trends are considered signs by procurement managers that it’s time to reflect on the future. And that statement is halfway true; as we’re slowly moving into 2022. That’s why it’s only right that for this article, we are going to talk about procurement trends for the year 2022 according to the experts.
We are going to decipher each trend and learn whether it’ll be doom or gloom for the year 2022 for procurement teams from all over the globe.
After reading this article, you’ll sound like a true expert when you start talking to people about procurement trends during your company’s end-of-the-year party.
Hi there! My name is Marijn Overvest, I'm the founder of Procurement Tactics.
Want to take your negotiation results to the next level?
The Procurement Trends for 2022
Despite the COVID pandemic, the outlook for the procurement industry still looks as strong as ever. Of course, it’ll take some time before the whole world shifts back to normal, but as always, procurement professionals are still looking for ways on how to fill their procurement needs without sacrificing too much on quality supplies and a hard-earned budget.
The key here is a strong procurement process. There really is no excuse. We offer the best procurement process through our Negotiation Gamechanger course. It’s a training program designed to help procurement teams in creating a procurement process that will give your company the edge in sourcing for new supplies and developing an edge in procurement.
If you are interested in Procurement challenges, we also wrote an article about these! For 2022, these are the procurement trends that experts are waiting to happen:
The year 2022 will be the year of sustainability for procurement. Because of the economic problems faced by the world with a global pandemic that forced almost all businesses to close down for a while in order to come up with solutions to adapt, economic sustainability will be the focus for the upcoming year.
Procurement and supply chain professionals will continue to experiment with blockchain in 2022. The technology promises to protect sensitive information and improve supply chain transparency while ultimately reducing disruption and delivering a more reliable service to the end customer.
Despite the technological benefits of blockchain, around 80% of supply chain initiatives will remain at a proof-of-concept or a pilot stage through 2022.
3: Minority-owned suppliers
By 2022, procurement consultancy firms and companies are still scrambling to look for alternate suppliers. For the upcoming year, it is projected that minority-owned suppliers will rise up to meet the demands of these procurement companies. These companies will give more effort in supporting these suppliers, whether it’s through re-evaluating contract terms, offering expedited or advance payments, implementing preferred supplier programs, conducting risk assessments, or collaborating with vendors to develop business continuity plans.
4: Touchless procurement
2022 will also mark the continued process of transforming procurement from a paper-filled process to a touchless one. As more and more procurement programs automate contract signing, contract renewal, and other paperless forms of deals & transactions like e-auctions, companies are also saying goodbye to traditional procurement processes.
5: Contingency planning
It is projected that the world will continue to hold on and recover from the pandemic by 2022. While experts believe that the year is still far off from getting the world economy back to its normal phase, procurement companies continue to hold contingency planning and meetings to avoid any forms of crisis during procurement processes.
6: Huge projects on hold
Huge projects will remain on hold in 2022 due to companies still reeling in from the effects of the current pandemic. Most companies are still working to get back what they lost when COVID first came out in 2020 and will continue to do so.
7: Facility Management
Indirect procurement will remain a huge deal for procurement managers in 2022. And with remote working still being the norm, procurement teams will continue to opt to work remotely until it becomes a permanent thing.
Since most companies will be supplying their workforce with computers, printers, and other important office gadgets at home, it will fall to indirect procurement teams to support this type of transition. There will be a decline in traditional office-based supplies, so procurement of this level will fall as well.
8: Supply Chains going green
Due to the nature of the COVID pandemic, there is now a challenge of being more sensitive to the needs of Mother Earth. For procurement companies, there is also a rising need to procure materials coming from supply chains that are consistently green. What this means is that there is now a demand for suppliers who are consistent in ethical sourcing.
9: Workforce Globalization and Challenges
With remote working still preferred by companies nowadays, the traditional workforce is slowly coming to an end. Companies can expect major changes in the labor component of most supply chains. A study initially predicted that 80% of manufacturers will have multi-country operations by 2020. However, with the pandemic, this growth may have been affected and perhaps delayed for a few years.
Shortages of employees working in the logistics division will also continue to be a problem. The root cause is somehow the lack of interest in these jobs. Thus, there is also an expectation that companies will be offering more benefits to warehouse and supply-chain managers, such as mentoring programs and tuition reimbursements.
10: Effects of Shorter Product Lifecycles
Product lifecycles and clock speeds become shorter, thus it is also expected that supply chains must change to become faster and more efficient in delivering supplies. Many companies today use a single supply chain for all products, despite the differences in these products’ life cycles.
In the future, companies will have to develop different supply chains to accommodate these varying lifecycles and remain profitable. This is the effect of companies developing products in such a rapid way that some suppliers are having a hard time keeping up.
What are procurement trends?
Procurement trends are upcoming events or situations that tell us something about what will happen in the procurement world.
How to deal with procurement trends?
The only way to deal with procurement trends is to always keep an open mind and to regularly check the changes that happen in the procurement industry, to use them to your advantage.
What procurement trends can we expect in the future?
The pandemic will continue to be a challenge for the procurement industry. But procurement managers are consistently trying to keep up with it.
Be Prepared for the Future
You don’t want to get caught by surprise when 2022 comes. So to keep yourself busy and prepared, you might want to get enrolled in our Negotiation Gamechanger Course. We have everything you need to become an expert in the world of procurement, so hurry up and enroll now!
Check out more information through our website at www.procurementtactics.com!
"Very useful course, many actionable strategies"
Want to close better deals? Prepare faster and achieve deal results you have been dreaming of? This course is a perfect fit for ambitious procurement & sourcing professionals. Enroll now and equip yourself with the full range of skills needed to master the deal.