GEP Procurement Outlook Report: 2024 Problems and Priorities
The GEP Procurement & Supply Chain Outlook 2024 is indicating that after years of disruption, stability is starting to emerge in procurement and supply chains. The report looks to cover the leading topics and priorities that will take precedence over the next 12 months.
“A bit of breathing space has emerged,” writes John Piatek, Vice President, Consulting at GEP. “Procurement and supply chain leaders can, finally, look a little further out into the future and begin to make longer-term plans than were possible in the recent challenging years.”
The report also raises the stabilising of inflation, interest rates settling into a reduction curve and job markets becoming more balanced. There is also the emergence of new digital tools to assist organisations, such as Gen-AI, that took great strides in 2023 and are expected to make greater leaps in 2024.
You can read the report in full here.
Procurement and supply chain problems and priorities in 2024
Supply chain volatility declines
GEP say in the report that after several years of volatility for procurement and supply chains, the situation is improving and there is meaningful supply chain capacity, with issues caused by transport costs, staff shortages and item shortages showing signs of improvement.
The arrival of AI
Although preceded by extensive hype and expectation, use cases for AI in digital procurement and supply chain management, are starting to take hold and significant benefits look achievable in the next year and nearly certain in the long term.
ESG on the agenda
The outlook reflects that some companies slowed their ESG strategies in 2023 because of other competing priorities. Key decision makers are now bringing ESG commitments back in the spotlight and are calling on procurement and supply chain to help.
Talent strategy
To meet all of these priorities, procurement and supply chain management are facing challenges in attracting, training and retaining talent to their business functions. New staff need skills in areas like digital, AI and ESG while also having traditional operational and financial skills.
The decline in supply chain volatility in 2024
“With supply chain volatility declining and some of the more acute challenges from 2023, such as inflation, starting to ease, procurement and supply chain leaders are looking further into the future than they did in recent years. They will witness exciting and inspiring developments,” says Piatek.
“For many procurement and supply chain teams, 2024 will mark a new beginning. After years of treading water amid crisis after crisis, the opportunity to invest has finally arrived.”
Read more about the GEP Global Volatility Index
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