Award-winning U.S. procurement firm, GEP recently released their Strategic Sourcing and Procurement Outlook trend report for 2013. The report outlines eight key trends that will impact procurement strategies this year, along with a market outlook of eight major sectors.
Low-Cost Sourcing and Emerging Markets
Outsourcing has long been a sore spot in the supply chain but the trend toward a more globalized economy will continue. In 2013, GEP foresees increased trade between the US and emerging markets like India and China, but believes many companies will move outsourced work to countries like Brazil, Mexico, and Southeast Asia due to higher wages and energy costs in China. In-sourced jobs will grow in the year ahead. “Lower domestic energy prices, legislative tax breaks, and increased domestic industrial productivity may make domestic markets more attractive,” states the report.
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Technology, Data, and Innovation
More companies will use tools like cloud computing, real-time data monitoring, and platforms that encourage collaboration. Businesses will analyze spending, compliance levels, inventory, operations, and much more using to-the-minute data. Strategic partnerships throughout the supply chain will be essential as well, encouraging data sharing and collaborative planning. According to GEP, “A key trend in the next few years will be a paradigm shift in the way procurement managers interact with their suppliers, shifting from “business transactions” to “business models.”
Cost Reduction and Risk Management
Reducing costs will still play an important role in supply chain strategy for 2013, but GEP thinks the most successful companies will take a more creative approach. “Leading companies are implementing innovative solutions that combine technology and processes and improve compliance without setting up draconian policies,” says the report. Businesses will use purchasing systems that streamline the process and will develop deeper relationships with key suppliers. “Companies are looking at solutions and partners that collate information not only internally but also externally, through due diligence studies to raise red flags and devise contingency plans on the go.”
The GEP report also discusses the outlook for public procurement in 2013, along with eight other general markets. The report is free to download with sign up on the GEP website. [/show_to]