ProcureTech hosted its 2023 Predictions & Purpose: a webinar revealing the way ahead for digital procurement as provided by the 2022 ProcureTech100 pioneers.
Joined by an expert panel of leading corporates, they discussed the 70+ predictions from the pioneers.
“Analytics, buying channels, AI – they all play a key part in talent… We will use tech heavily to support our search for the right talent in 2023.”
Mark Smith, Procurement VP – Digital & Talent Supply, BP
The webinar elicited engaging conversations between the panel, each sharing their own experiences, successes and struggles of using and looking for the right digital solutions.
The 2022 ProcureTech100’s predictions were separated into 5 different categories:
Commercial & Productivity
Supplier Management & Risk
Organisation & talent
Digitalisation & Intelligence
Organisation & Talent closely looks at how companies will need to focus on new solutions and practices in 2023. We asked them:
- What is going to share digital procurement in 2023 and beyond, and why?
- What is going to be most important for your category over the next few years, and why?
Companies, as evidenced by 100% + year over year growth, will significantly increase their utilization of sourcing external workers via direct sourcing.
We continue to suffer the war for talent as well as a renewed desire to focus on sourcing diversity candidates. Direct Sourcing digitization will help firms attain these goals
Companies will finally begin to manage the external workforce side by side with it’s FTE workforce in the early moves towards true Total Talent Management
Pressures to produce outcomes and cut expenses mean companies will make more use of the external workforce, but must do so with a clear understanding of what must and must not be done by full time employees. Technology solutions are now providing a simpler and elegant manner to aggregate this information and use it strategically
Doug Leeby, Founder & CEO, Beeline
The digitalization of procurement is necessary to handle market uncertainties that will continue to disrupt industries beyond 2023.
Cross-functional, stakeholder-oriented collaboration will be a crucial component in overcoming the economic uncertainties lying ahead in 2023.
Cross-functional collaboration and alignment were less important than now, especially in light of price volatility, geopolitical issues & supply chain disruptions.
Drasko Jelavic, Founder & CEO, and Lubos Libiak, Customer & Delivery Executive, Cirtuo
The lines between procurement and the rest of the business will start to blur, and the joint focus will be impacting corporate initiatives.
Kevin Frechette, CEO & Co-founder, Fairmarkit
In our category (Analytics, Data and Intelligence) new natural language models, deployed appropriately, will shift the conversation about ‘best practice procurement’ away from more and more automation and toward human augmentation.
David Doyle, Co-founder & CEO, Forestreet
Hiring and retaining strong cyber talent will be one of the top challenges for the public sector
The cybersecurity skills gap that has plagued the security community for the last several years won’t be closing any time soon. Research reveals that 80% of organizations suffered from at least one data breach in the past 12 months due to a lack of cybersecurity talent or awareness. The public sector is especially at risk, with more than 700,000 unfilled cybersecurity positions as of July 2022.
In 2023, the inability to hire and retain appropriate talent to defend against a high volume of attacks will leave the public sector highly vulnerable. To fill the widening cyber skills gap, the public sector must improve compensation packages to prevent losing talent to well-paid roles within the private sector, as well as expand diversity within their workforce.
Sachin Bansal, Chief Business Officer, SecurityScorecard
Deeper alignment between procurement and finance, with procurement strategies becoming more integrated with AP and vendor management
A well-executed payments monetization strategy can offset the cost of the entire procurement tech stack on the back of the payment charges. Additionally, there are closely adjacent capabilities such as dynamic discounting, SCF etc., which will create more revenue potential. Pay-As-You-Save economic models are becoming more and more relevant, as they remove the price barrier to entry and promote shared value between buyer and supplier.
David Bush, CEO, Simfoni
In the wake of the outcomes from COP27, net zero targets are going to shape the digital procurement landscape in 2023 and beyond.
It’s clear that we’re not doing enough to reduce the impact of carbon equivalent emissions in the atmosphere if we want to meet the IPCC targets of remaining under warming of 1.5 degrees celsius, and in fact, many current claims of carbon reduction have been shown to be little more than greenwashing.
With somewhere between 80% and 90% of a company’s environmental impacts sitting in the supplier base, it’s clear that we cannot be sustainable without our suppliers. As a result, we’re going to see the formation of more sustainable procurement roles and teams, tasked with ensuring absolute reductions in overall corporate greenhouse gas emissions.
Look out for the full predictions from the 2022 ProcureTech100 pioneers!
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