Procurement Technology Trends & Acceleration

During the formation of the ‘Bold Procurement Predictions for 2030′ Insights series, ProcureAbility closely examined how mature procurement teams are in adopting new practices and emerging trends. As a result, it became clear that organizations vary widely in their adoption of processes and technologies. While some remain focused on core practices, others—a small group of innovators—actively explore ways to leverage supply chain technology. Consequently, ProcureAbility concentrated its effort on the top of the pyramid: ideation.

In this Insights series, ProcureAbility highlights five emerging trends that procurement organizations should expect to move from the top of the pyramid to the bottom by 2030. These trends include advanced crowdsourcing, accelerated procurement technology, cognitive computing, hyper cybersecurity, and virtual organizational design.

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Procurement Technology Acceleration

ProcureAbility is excited to release its ‘Bold Procurement Predictions for 2030’ Insights series. This series is designed to help Chief Procurement Officers navigate the changing landscape. The series highlights emerging practices likely to become common by the end of the decade. These include advanced crowdsourcing, accelerated procurement technology, cognitive computing, hyper cybersecurity, and virtual organizational design.

In this edition of the ‘Bold Procurement Predictions for 2030’ Insights series, we present findings from extensive research and input from a supply chain expert think tank. The series examines how rapid technology acceleration is expected to shape procurement practices by the end of the decade. Moreover, Chief Procurement Officers are already re-evaluating processes. Nearly one in four cites digital transformation as a top strategic initiative.¹

Most mid- to large-size organizations already use e-procurement and e-sourcing software, and we expect adoption to grow rapidly in the coming years. Artificial intelligence (AI), machine learning (ML), and predictive analytics will transform many administrative tasks. These major shifts in procurement technology will reshape how teams conduct business. Below are some emerging technologies we expect to reach mainstream adoption by 2030:

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Interactive RFx and Purchasing

Extended reality (xR) refers to immersive technologies, including virtual reality (VR), which creates a full environmental simulation, and augmented reality (AR), which overlays virtual elements onto a user’s view. The xR market is projected to triple in value by 2028.²

xR is quickly becoming a valuable tool across industries such as education, entertainment, gaming, industrial training, automotive, construction, and healthcare. In procurement, virtual reality may allow bidders to present proposals and supporting materials live during auctions. VR could replace site inspections, in-person presentations, and even written bids.

3D Prototype Printing

We expect 3D printing to become an industrial staple within the next decade. Proposal submissions will be fully rendered in three dimensions, rather than on a physical or digital page. These prototypes will move through an accelerated review and approval cycle, allowing buyers to provide feedback quickly and shorten the gap between prototyping and implementation.

Wearables and Intelligent Assistants

Some consumer technologies will move into the professional realm, and procurement will feel the impact. Think about how easily you order items from a smart speaker—“Hey, Assistant, order me paper towels!”—and receive them a few hours later. Imagine that same convenience applied to corporate procurement through intelligent assistant apps.

Soon, a remote employee might say, “Hey, Assistant, order me a new keyboard for work!” The item will arrive from the corporate catalog, with billing handled automatically. Wearable devices, such as smartwatches and smart jewelry, will also play a larger role in procurement. Many purchasing tasks and status updates will be managed on demand, with just a few words or taps on your wrist.

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Machine-Learning Contracting Process

We expect that ML has the potential to replace the often-cumbersome process of cleansing and exchanging vast pools of data, virtually eliminating human error. The power of ML resides in the speed that it can access that information, analyze trends, and forecast future states. By 2030, standard terms and conditions will be controlled and updated by ML is based on algorithms learned from best practices and prior contract negotiations.

Automated Negotiation Systems

We believe that, by decade’s end, negotiation will be automated using real-time data to predict the best tactics. Predictive analytics, fed by data collected from previous decisions, will be leveraged to take human emotion (and error) out of negotiation. Advanced automated negotiation systems will analyze negotiation inputs, incorporate real-time data, pull from past experiences, and then recommend strategies for any given scenario.

What Now?

IT executives must first begin investing in technologies and systems that will prepare their staff for the new standards likely to be widespread within ten years. Next, they should test and evaluate these innovative technologies. This will help procurement experts become familiar with them and understand how they fit into the organization. Additionally, they should foster an internal culture that encourages experimentation and adoption of innovation. Ultimately, a technology implementation that is well-planned, deliberate, and sensible today can lead to a streamlined procurement process by 2030.

Next in the ‘Bold Procurement Predictions for 2030’ Insights series: Cognitive Computing

Sources

¹Ardent Partners, Procurement Metrics That Matter in 2022, June 2022

²Valuates Reports, Extended Reality Market to Grow USD $67.87 million by 2028 at a CAGR of 15.0%, 10 June 2022

Bold Procurement Predictions for 2030 Insights Series from ProcureAbility

Bold Procurement Prediction #2:
Procurement Technology Acceleration