Bold Procurement Prediction #2:
Procurement Technology Acceleration

During the formation of the ‘Bold Procurement Predictions for 2030′ Insights series, ProcureAbility was keenly focused on procurement teams’ maturity levels for accepting new practices and emerging trends. It quickly became clear that procurement organizations are all over the map in terms of the new processes and technologies adopted. Some are still mired in their core practices, while a small group of innovators are ideating new ways to leverage supply chain technology. The focus of ProcureAbility’s effort was at the very top of the pyramid below: ideation.

In this Insights series, ProcureAbility explores five emerging trends that procurement organizations should anticipate will transition from the top of the pyramid to the bottom by 2030, including advanced crowdsourcing, procurement technology acceleration, cognitive computing, hyper cybersecurity, and virtual organizational design.

ProcureAbility is pleased to publish its ‘Bold Procurement Predictions for 2030’ Insights series to help Chief Procurement Officers make sense of it all, highlighting the new practices likely to become common by decade’s end including advanced crowdsourcing, procurement technology acceleration, cognitive computing, hyper cybersecurity, and virtual organization design.

In this edition of the ‘Bold Procurement Predictions for 2030’ Insights series, the product of extensive research and input from a think tank of experts in the supply chain field–with a look at the rapid technology acceleration- is expected in the procurement practice by decade’s end. Chief Procurement Officers are already re-evaluating processes, with nearly one in four reporting that digital transformation is a strategic initiative in 2022.¹

The majority of mid- to large-size organizations report using e-procurement and e-sourcing software, and we predict use will grow exponentially in the coming years. Artificial intelligence, machine learning (ML), and predictive analytics will impact human efforts for most administrative tasks. These seismic shifts in procurement technology stack will have a significant impact on how teams conduct business. Here are a few of the emerging technologies we expect to gain mainstream acceptance by 2030:

Interactive RFx and Purchasing

Extended reality (xR) is a term used to describe a group of immersive technologies including virtual reality (a full environmental simulation) and augmented reality (in which virtual elements are overlaid onto the user’s viewpoint). The extended-reality market will triple in value by 2028, according to one estimate.²

Extended Reality Is quickly becoming a useful tool in the Education, Entertainment, Gaming, Industrial Training, Automotive, Construction, and Healthcare industries. Virtual reality is expected to allow bidders the ability to present their proposals and associated materials live during auctions. Virtual delivery will take the place of site inspections, presentations, and even written bids.

3D Prototype Printing

We anticipate that 3D printing will become an industrial staple in the next decade. Proposal submissions will be three-dimensional and fully rendered, rather than being printed on a physical or digital page. Furthermore, these prototypes will have to go through an accelerated review and approval cycle so buyers can provide feedback with quicker turnarounds between prototyping and implementation.

Wearables and Intelligent Assistants

Some consumer technologies will cross over into the professional realm, and the impact will undeniably be felt in procurement circles. Consider the ease with which you order goods from your smart speaker–“Hey, Assistant, order me paper towels!”–and the delivery arrives on your doorstep a few hours later. Apply that same convenience as developers create intelligent assistant apps for corporate procurement needs.

Soon, a remote employee will say, “Hey, Assistant, order me a new keyboard for work!”. The new hardware from the corporate catalog will arrive, with corporate billing handled on the backend. We predict that wearable devices such as smart watches and smart jewelry, too, have more features available to procurement. Most purchasing processes and status updates will be handled, on demand, with a few words or taps to your wrist.

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 quickly begin investing in the technologies and systems that will educate their staff for the new standards sure to be widespread within ten years. Test and evaluate the innovative technologies so procurement experts may become familiar with them and how they will fit into an organization. Create an internal culture that encourages testing and adopting innovation. Today’s technology implementation that is well-thought out, deliberate, and sensible 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