Procurement in 2020: Will Procurement Not Do Procurement?

Deloitte’s paper, Charting the course: Why procurement must transform itself by 2020, cleverly challenges the notion of who will do procurement in 2020. I don’t know if I agree with the thought entirely, but it’s a great purchasing and supply chain debate starter nonetheless. To wit, Deloitte suggests that in 2020 “who ‘works in procurement’ will be different than ‘who does procurement,’ a critical nuance.”

The concept here is one that procurement is pushed to the business to handle, and what is left from a centralized (and functional) perspective is different indeed. Consider:

At the extreme, 50% or more of the function could be comprised of those carrying out procurement responsibilities as part of a rotating assignment. Innovation, automation, compliance and value capture approaches including systems that report on performance will also remain, as will collaboration, benchmarking, measurement, and reporting processes and tools. But given the expanding definition and scope of procurement, these elements will grow to encompass additional areas, such as embedding previously internally-focused environmental, health and safety (EHS) team members in continuous external supplier and supply chain auditing and vendor development activities.

In other words, procurement will change significantly from today, and what’s left will not exactly be “what’s left,” but rather “what’s new.” Enablers to this vision will no doubt include the potential value of supplier management systems, platforms (intra-company), and programs that begin to document and capture information in an automated manner, rather than relying on internal resources to handle these areas, leaving procurement to administer integrated programs rather than having to marshal and make sense of highly distributed efforts today.

This post is based in part on content from Charting the course: Why procurement must transform itself by 2020. If you're interested in learning more about how analysts see the future of procurement and supply chain, register for our upcoming conference, Commodity/PROcurement EDGE.



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