I've been explaining in detail each of the ten main takeaways from my presentation at ISM’s Risk Conference in Chicago last month. My talk had focused on what’s next for supplier and supply chain risk management – a topic that gave me significant opportunities to explore different areas of interest! But I started my presentation with an overview of some of the top trends we observed in procurement and finance in 2012 and what we’re currently forecasting for the remainder of 2013 and into 2014 – and how these many of these trends directly intersect with risk management.
In 2012, four of our top procurement/finance trends actually had a risk management emphasis or component. These were:
- Compliance/risk: SPM, supplier visibility, operational/financial stability, etc.
- Balancing demand/supply volatility (e.g., part shortages during the holiday season)
- Greater collaboration in the area of risk management, especially with finance resources beginning to provide greater support to procurement
- Significant interest in auxiliary areas such as dynamic discounting/supply chain finance, rebates/trade credits, vendor/supplier management systems visibility, and integration into AP environments
For 2013 and 2014, we’re predicting an even greater emphasis on risk in our top trends, including:
- Anticipating/forecasting (cash, revenue, demand, etc.) and mapping to procurement and working capital strategies during a likely downturn
- Risk management, albeit from an expanded perspective/definition
- Commodity, cost volatility, and reducing exposure/risk
- Expanding into new services-focused areas including complex categories – managing value and outcomes with cost as a key component
- Significant new adoption and early buying signals on the horizon for solutions that “surround” P2P systems, including P2P on-boarding, supplier transactional/network connectivity, and catalog/content management
- Working more closely with finance to create a measurable means to identify, implement, track, and measure savings impact on a total-cost, P&L basis
- Working with IT and solution partners to develop new analytics, reporting, and compliance mechanisms to support targeted initiatives (e.g., Conflict Minerals)