Continuing our series of procurement and supply chain related predictions for next year, we have gathered a variety of predictions from leading vendors in the procurement and supply chain market, and will add our own sprinkling of endorsement from analyst Magnus Bergfors in our own roundup piece to follow.
Today let’s hear what spend management giant, SAP Ariba and vendor management system expert SAP Fieldglass have to say in the first three of their six predictions.
Data moves from an analytical – to decision-making – tool
In 2020, the shift to leveraging data for real-time decision-making will accelerate for a growing number of business functions. For example, through intelligent platforms and network ecosystems, companies will access more and more data sets to shed light on such things as a potential supplier’s financial capability to fulfil a contract. Data can also be used to make budgetary decisions informed by the current status of each and every area of a company’s spending. Organisations possess, and can access, much or all of this data today, with the right tools. And with an increasing number of data points uncovered by IoT and machine learning, there is more information than ever before to help drive results. This allows organisations to make better sense of what’s happening, what’s coming, and, ultimately, make more intelligent decisions. In the coming year, many more organisations will start to realise the potential of their data to intelligently guide business decisions and leverage it to reach even greater levels of success. And looking even further into the future, they will eventually be able to determine whether potential suppliers’ policies adhere to international laws and social ethics, and be able to use data to identify, in advance, a host of potential supply chain disruptions, such as a small number of suppliers concentrated in a region vulnerable to weather or manmade disasters.
– Mike Eberhard, President, SAP Intelligent Spend Group
Sustainable procurement gets fueled
“We’re entering a ‘greener’ decade spurred by people worldwide demanding innovative solutions to a changing climate – and a year that will feature a resolution to Brexit in Europe and ongoing trade negotiations between East and West. Addressing these and other challenges, including the global movement to end forced labour in supply chains, enterprises are seeking to align their brand values with those of likeminded trading partners. As we enter 2020, we can expect to see an uptick in adoption of intelligent spend management solutions as enterprises increasingly reap their benefits — operationally, reputationally and sustainably. The best solutions, both for the procurement of direct and indirect goods and for external workforce management, guide users through an intuitive process and, leveraging third-party content, prompt them about any upcoming issues or challenges so they can make better-informed decisions. Meanwhile, these insights also enable enterprises to procure with purpose. These opportunities, made possible by cloud-based digital networks, are extending competitive advantage and fueling sustainable procurement at a scale never previously imagined – a phenomenon that is only gathering pace as we head into the new year.
– Pat McCarthy, Senior Vice President and General Manager, SAP Ariba and SAP Fieldglass
Adaptability and flexibility will be key
In times of economic uncertainty, it becomes even more important for businesses to focus on cost efficiency, compliance and working capital management. To prepare for this uncertainty, in 2020 more organisations will think more strategically about how they spend business cash – investing in better spend management strategies that not only cut costs, but also to create new revenue-driving opportunities to grow and quickly scale. And, adaptability and flexibility will be key to recession-proofing, so procurement leaders will need to embrace technologies that can integrate with intelligent technologies and analytics to improve decision-making, speed and efficiency.
– James Lee, Chief Operating Officer, SAP Ariba and SAP Fieldglass
Thanks to SAP Ariba and SAP Fieldglass – and look out for more solution provider predictions over the next few days. It will make interesting writing for the end of 2020 to see which were most accurate!
Please note that the order of vendor predictions in this series is based entirely on the order in which they dropped onto our digital doorstep, nothing more.
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