The notion of work is evolving. Managers in all roles, including procurement, face the problem of keeping their top employees. Many companies have to do more and do it with less. According to a report from Pew Research Center, the “quit rate” in the U.S. reached a new high of 20 in 2024.
Procurement has always struggled to find top talent. However, it now has a unique opportunity to utilize cutting-edge technologies to alter the paradigm. Digital platforms can automate repetitive manual processes, allowing procurement teams to concentrate on more strategic projects that can increase business value and influence while developing user-friendly, intuitive interfaces for carrying out this task.
In the work Trade Wars, Pandemics, and Chaos The Way Digital Procurement helps businesses thrive in a Disorganized world, Elouise Epstein, an expert in digital technology at Kearny, states: “Digital procurement technology has evolved, the expectations for leadership regarding digital technology has changed, and the opportunity has arrived for those who can seize it.”
For companies caught with”the “Great Resignation,” new technology can offer the possibility of a bright future. The continuing shortage of workers has created a sense of urgency, forcing many international businesses to increasingly rely on third-party suppliers for what were previously essential business services. As the future workforce grows, it is not likely to slow down. And with no strategy put in place, organizations have a more challenging time locating the right employees.
Teams must be organized with new methods to ensure their top personnel can concentrate on work of the highest value and tap into the market of service providers to find innovative sources of talent. Combining the most effective traditional talent in procurement with fresh talent from within and outside the company and the increasing democratization of procurement via self-serve sourcing and artificial intelligence-driven technology will likely create a unique sourcing team, which will increase its impact across the entire organization.
As part of this process, eliminating 80% of the repetitive manual process will change the make-up of procurement teams, leaving a core set of people with the right emotional intelligence and relationship-building skills to meet today’s most pressing sourcing challenges. Through this process, they will alter the perception of who they are.
Innovative technology in the digital age allows businesses to expand quickly and benefit from rapid-changing markets without finding a lot of employees. In the same way, innovative platforms and solutions will also attract the workforce of today, which seeks a seamless, seamless experience in both their professional and personal lives.
According to Phil Fersht, founder, chief executive officer, and chief analyst of HFS Research says: “It’s not so much we’re struggling with a shortage of talent, we’re struggling with a shortage of the right talent.” Utilizing AI or automation digitalizes old analog processes. It frees up the procurement team to concentrate on tasks that require more human effort, like problem-solving, collaboration with suppliers, and innovative product development. This helps ensure that the organization will draw the top and brightest of the future.
As today’s workforce is constantly reassessing what they want when they work, There’s a greater emphasis on corporate mission. The hybrid workplace is merging with the multigenerational workforce, and there’s an increasing focus on social, environmental, and governance (ESG) and profit with a purpose. Companies need to be prepared to take advantage of the “new world of work,” discovering new methods to stimulate creativity among their employees, suppliers, and partners and using technology to collaborate and connect to speed, agility, and the ability to scale.
The way that a business spends its money has an impact on its ESG strategies more so than any other aspect, which presents a unique opportunity for procurement to make use of the latest digital technologies to boost profitability and aid in building an equitable, sustainable world economy.
Many chief procurement officers thought they could not make a difference in the past. However, procurement managers are now equipped to be the primary leaders of the overall performance of the company. This means that CPOs will not just be able to sit on the board, but also their teams will be a stimulating environment for employees to work in. In the realm of procurement, they will contribute to a better world by ensuring greater environmental sustainability and more inclusive economies. More transparency and improved corporate governance.
As a job procuring, the primary responsibilities of procurement have been focusing on reducing cost, delivering value, and establishing reliable networks. With the development of AI procurement, it has the unique chance to have an impact that is tangible and significant on the performance of companies and adopting cutting-edge technologies that can aid in overcoming the challenges facing today’s workforce and embrace new technologies and the “new world of work” to ensure that they hire the most qualified people to do the task.
This digital transformation can help build resilience and long-term flexibility into procurement’s operational models and processes, enabling businesses to deal with disruptions in the future while also accelerating growth and long-term value.
