The importance of risk management has become clear as businesses continue to learn from the many challenges brought on by the COVID-19 pandemic. As a result, one procurement trend that people can anticipate in 2021 is the prioritization of risk at all stages of the procurement process.
FREMONT, CA: The year 2020 was a period of significant disruption for supply chains, and procurement processes are still being impacted. With no clear timeline for a return to normalcy, businesses are now focusing on adaptation and attempting to survive and advance. With that in mind, here are six procurement trends to look out for in 2021.
Managing Risk Is a Priority
The importance of risk management has become clear as businesses continue to learn from the many challenges brought on by the COVID-19 pandemic. As a result, one procurement trend that people can anticipate in 2021 is the prioritization of risk at all stages of the procurement process. This should begin with a thorough risk assessment of all procurement processes and the development of contingency plans, such as creating a list of reliable backup suppliers as well as optimizing inventory.
Focusing on Environmentalism and Sustainability
In recent years, the consequences of industrial and transportation processes have become impossible to ignore or deny, making sustainability and environmentalism much more important. As a result, another procurement trend expected in 2021 is the overhaul of processes with a negative environmental impact as well as the implementation of new eco-friendly solutions, such as more considerate shipping processes and more local sourcing where possible.
Focusing on Social Impact
More businesses are under stress to be more socially conscious and develop a broader understanding of environmentalism. This could imply a greater emphasis on ethical practices, such as a fair wage and working conditions for all workers involved in the supply chain, rather than just procurement. This could also lead to more local labor being sourced where possible in order to provide opportunities for the community.
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