Top 10 best developments in the world of Purchasing

How have procurement techniques evolved and are they different from 10 years ago?

1. The proliferation of technologies

Today, e-Sourcing and e-Procurment are among the most used practices in Purchasing.

10 years ago, few people knew about these methods and therefore they were not widespread.

2. The centralization of Purchasing actions

Observing practices 10 years ago, even The best Purchasing services were organized in such a way that each actor could manage the ordering process.

Today, buyers tend to centralize the tendering process mainly, and delegate all order management to other employees, to focus on their core business.

3. Expanding Purchasing Portfolios

When a Purchasing department generates savings and good results, management seeks to broaden the department's fields of action, and thus to involve Purchasing in other areas on which they could have a positive impact.

Formerly under the responsibility of other departments, the car fleet, investments and even travel are now increasingly managed by the Purchasing Department.

4. Social responsibility is becoming a priority

By seeking to be philanthropists or to avoid media scandals, Departments rely today more than ever on Purchasing to work with various suppliers by making decisions that respect environmental balance, and thus in compliance with ethical rules.

5. Performance measurement

With the now well known concept of Smart procurement, Departments tend to hold Purchasing responsible for poor results.

Thus, the use of indicators and dashboards is becoming common in order to really define everyone's responsibility for announcing results, good or bad.

6. Internalized strategic purchasing

In the 90s, an external service provider was in charge of managing tenders relating to strategic purchasing of the company.

It was often a consulting firm, to support the company and help it reduce expenses.

Today, it's just the opposite. Most companies focus on strategic purchasing families, and on the contrary tend to outsource purchases with lower added value.

7. The role of suppliers has evolved

Ten years ago, discussions began on possible “partnerships” with suppliers.

Today, we are taking action: Purchasing seeks to advance their service providers by soliciting their participation in the development of new products or by seeking new ideas in terms of innovation.

8. Global sourcing has become democratized

Previously, only the largest firms looked for suppliers abroad. But nowadays, it is even becoming difficult to find products made on the national territory.

9. Recognition of the profession

For only a few years, the position of Purchasing Department Director has been recognized and valued.

10. The valued supply chain

In the last decade, businesses have analyzed the flow of material flows in and out of the organization.

This “supply chain” has allowed those whose main task was to place orders to now become responsible for inventory, stock management, logistics or even distribution.

‍