In yesterday’s post we pointed out that despite strong claims to the contrary, AI will not save Procurement (and, if hastily applied, will only hasten its demise). Procurement is at a crossroads, but the last thing it should do is sell its soul to the demon that spawned modern AI.
As the public defender pointed out in a recent co-authored piece on The Future of Procurement, courtesy of Trade Extensions, Procurement will survive, as long as it redefines its role to meet the needs of the new enterprise.
As highlighted by the public defender, Procurement will, among other roles, be the organization that
- brings to the table an understanding of what markets and suppliers can offer to support the strategic direction of the business
- brings to the table an understanding of what platforms will best support the organization’s business, not just the day-to-day sourcing and procurement solutions
- brings to the table the deep expert market research and negotiation skills that are required to not only secure supply but transportation, talent for operations, and good customer relationships
- brings to the table the value engine that increases organizational efficiency and effectiveness and innovation that takes the organization to the next level
But it will do more than that. It will be the department that helps set the strategic priorities for the organization. It will be the department that defines the best strategy for talent acquisition and management. It will be the department that will define not only where the organization fits in the supply chain, but how the supply chain will run to support the organization. It will be the new nerve centre of the enterprise, created by the thought-leaders of tomorrow.