2022 procurement technology trends to keep an eye on

In today’s fast-paced environment, procurement professionals are grappling with the overwhelming challenges of navigating disruptions and remaining competitive in an increasingly digital world. 

According to Rosslyn and CIPS, there are five key trends in the procurement technology space that organisations should continue to keep an eye on:

1. Integrating a digital transformation strategy

According to CPIS, 95% of firms have adopted at least one digital enabler for procurement such as cloud computing, big data, and IoT. In order to drive the highest value from such technologies, organisations need to integrate a digital transformation strategy into their business planning incorporating digital inputs and connectivity into all processes. 

2. Artificial intelligence (AI)

A fundamental asset to the procurement function, AI systems including machine learning (ML), natural language processing (NLP), and robotic process automation (RPA) can be used by the function to automate and streamline processes, lightening the load and automating repetitive tasks.

3. Cybersecurity and protection

Working with such large volumes of data, the procurement function needs to ensure that it puts in place effective cybersecurity and protection methods to safeguard the data, as well as protect the system from attacks or corruption. 

To achieve this, collaboration with IT departments, risk assessments, due diligence, and data encryptions will be key. In order to be the most effective, organisations need to extend this approach through the entire supply chain.

“A long, complex supply chain is vulnerable to digital intrusion along its entire length, and procurement specialists need to secure that chain to protect the business.

Using big data to drive decisions,” commented Rosslyn.

4. Big data

Integral to greater efficiency and decision making, it is vital that procurement can process and digest large volumes of data to drive actions. 

The benefits of effective data management can help procurement to reduce spend, mitigate risks, predict disruptions, enhance supplier knowledge, and optimise efficiency.

5. Blockchain 

Promising greater transparency, tamper-proof self-verifying smart contracts, lower costs, and reduced human error, the procurement functions stands to benefit greatly from the use of blockchain infrastructure and transactions.

“What is clear, though, is the imperative to adopt technology for procurement [...] Procurement professionals that don’t get behind them are liable to fall further and further behind, with grave consequences for their business,” said Rosslyn.