2015 Spend Matters Prediction: Innovation


Internal procurement activities may generate savings, but they rarely generate ideas – at least when initiatives look inward and not outward. There’s no surprise here.

Companies and supply management organizations generally create value in the sourcing and procurement process through tapping supplier innovation from suppliers. There are many ways to extract creativity from the supply chain – innovation panels, open innovation solicitations, collaborative development, etc., are just the beginning.

But innovation must become part of the entire sourcing and procurement process. And here is where we see companies doing more in 2015. The story is one that is very much analogous to the rise of diverse species and life on Earth – which grew out of not just earthly material, but the bombardment of external bodies (e.g., comets) and energy (e.g., sunlight) with our native organic material.

Procurement and supply chain innovation is not sustainable without an outward orientation. Moreover, it's not so much a prediction, but really a continued trend, with a near 100% chance of coming true.

But in 2015, it will become standard practice for an increasing number of organizations in a more structured manner.

Stay tuned for our full 2015 predictions report, coming soon! Sign up below to receive the full report when it is released!


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