The future of procurement - KPMG Global (2024)

FAQs

Is there a future in procurement? ›

There are more disruptors at work than ever before – and they're moving fast and at scale. The key to success is to develop a blueprint for how your procurement team can turn these disruptors into opportunities to grow and gain competitive advantage. This is what the future requires of procurement.

Procurement 2030 will need the ability to navigate through the changing landscape with a new agility, responding in as close to real time as possible and adapting fast to stay ahead. Access to new and vast sources of data and insight will be key here.

KPMG Powered Procurement can help you move procurement into the future as an agile, strategic partner to the business. It will provide the strategy and tools to help you identify needs, deliver cost savings, de-risk purchasing, and secure your supply network.

Public procurement should be all about people. It's a means to an end, not an end in itself. That's why we are leading our new strategy with a bold ambition that puts people right at the center of our work and impact.

The future procurement landscape will also prioritize supplier diversity and inclusion. Organizations will recognize the value of sourcing from a diverse range of suppliers, thereby fostering innovation and economic growth in various communities.

To thrive in the future, procurement needs a new breed of professionals who possess a diverse skill set. The buyer of the future combines the traditional procurement tool kit and category expertise with a new set of capabilities in advanced data analytics, sustainability, and strategic thinking.

The global survey garnered responses from 357 participants across 262 companies, and the findings corroborate that the procurement job market is, in fact, experiencing significant growth.

Market risks, potential frauds, cost, quality, and delivery risks constitute the most common type of risks. Additionally, compliance risks like anti-corruption, policy adherence, and more keep your procurement leaders up all night.

The purchasing manager is next on the career path after a procurement analyst. These professionals purchase products from vendors for the company to resell or use. They evaluate the quality of products, oversee buyers and purchasing agents and negotiate contracts.

At the end of the procurement career path is the chief procurement officer (CPO).

What are the 4 main roles of procurement? ›

It ensures that materials, services and supplies are purchased at the best possible price while meeting the required specifications. The four main roles of procurement are sourcing, negotiation, contract management and supplier relationship management.

Sustainable procurement is a process that integrates environmental, governance, and social factors of corporate responsibility into procurement processes and decision-making, while ensuring they still meet the stakeholder requirements.

Sustainable procurement rests on three pillars, which are economic, social and environmental factors. Economic sustainability means that purchases should be made at the right price while ensuring quality standards.

The primary goal for a procurement professional is to deliver value. They effectively lower operational costs by purchasing supplies and services at the best available price.

The estimated total pay for a Procurement is $133,755 per year in the United States area, with an average salary of $95,370 per year.

Indeed, it's an important role and top talent is in high demand. According to Hays, a UK recruiting firm, 70 percent of organizations expect to increase or maintain their level of procurement activity in the next year.

Procurement involves finding creative solutions to supply problems, and the variety in these concerns alongside the sector's typical tasks also regularly provides new challenges and duties for people in these roles. If you enjoy a job with no set routine, working in procurement could be a good career choice.