In the last two years, the challenges imposed by Covid-19 and disruptive technologies in supply chains have contributed to make the procurement area even more strategic for organizations.
Today, the leading role that the area plays in achieving results and competitiveness is clear. Therefore, procurement professionals must be always updated and adapted to the changes that are taking place and setting the procurement of the future.
But although procurement has gained strength in business processes, there are some activity-related myths that hinder the speed of its evolution. Believing that technology isn’t a key tool for buyers, for instance, is one of them.
With that in mind, we’ve listed the 7 myths about the procurement area and buyers, which must be forgotten once and for all.
Enjoy the reading!
7 myths that hinder the evolution of the procurement area
Myth 1 – Keeping up to date with world events isn’t relevant
International scenarios can affect procurement decisions. Therefore, it’s important to be aware of what is happening, for instance, in politics, economics and business in general.
Health crises and pandemics, geopolitical conflicts, shortages in product supply and inflationary pressure, among other facts, have led companies to rethink their business models.
We have recently published, on ME’s blog, an article about the conflict between Russia and Ukraine, along with its impacts on the supply chain – such as the shift of supply chains from the global to the local sphere.
Myth 2 – Diversifying the supplier base isn’t really a must
The dynamism of the B2B market and uncertain scenarios require the procurement area to constantly seek supply alternatives.
Having a broad portfolio of partners decreases the risks of shortages and increases the chances of keeping operations running.
In addition to the diversified base, keeping good relationships with suppliers and considering their participation in processes that go beyond procurement can contribute to strengthen the organization’s innovation and performance.
Myth 3 – Automating procurement processes isn’t a priority for businesses
To act in a more intelligent and strategic way in organizations, professional buyers must be freed from operational activities, which will eventually take up much of their time.
By automating the procurement cycle through digital solutions, buyers can dedicate their time to innovation, for instance – an indispensable factor for the competitiveness of businesses in our days.
Additionally, access to data and information available in the tools helps to bring important insights to the planning, analysis and adjustment of the procurement strategy.
Myth 4 – Procurement technologies will replace buyers’ work
The covid-19 pandemic, the most recent occurrence, has given new meaning to work formats and accelerated the process of digital transformation in the procurement area.
The digitization of manual processes, with the use of digital solutions, is probably one of the biggest concerns that haunt buyers, who believe that their work will be discarded.
But, in contrast with the myth, procurement digitization helps to improve team performance, increases the chances of savings and creates more productivity, innovation and competitiveness.
Myth 5 – Making data-driven decisions requires a lot of work
Increasingly, buyers must not only collect, but also analyze the available data on the acquisitions of every industry, in a strategical way.
Through digital solutions, procurement professionals can have quick access to reports and KPIs – and, by monitoring and measuring the area’s performance, can make the best decisions.
Without access to data and information, the procurement area works with assumptions only, which increases the chances of wrong choices and financial loss.
Myth 6 – ESG is just fashion, not a trend
To survive in the coming years, businesses must be more and more sustainable. This is because, more than a trend, sustainability is an innovation tool.
Keeping a close eye on the supply chain and choosing reliable partners are examples of key actions for a proper adaptation to ESG practices (acronym for Environmental, Social and Governance).
After all, the choice of raw materials and suppliers has a full impact on the product that will be used by the end consumer – who is increasingly aware of these issues.
Myth 7 – Technical skills are more important than behavioral ones
In the procurement area, technical knowledge is very relevant, but it isn’t enough for the success of procurement professionals in the future.
In fact, professional buyers must make strategic decisions frequently. For this reason, behavioral skills are now the most demanded skills.
Creativity, emotional intelligence, growth mindset and collaborative leadership are some examples of skills expected by businesses from those professionals who work in procurement.
In this article, we shared some myths that still haunt the procurement area and the buyers, preventing the growth of the area and its professionals.
Has this content been useful to you? To receive our publications first hand, enter your e-mail here.
See you next time! 😉