New Year’s Shopping and Services Market Wishes 2022
For several years now, Spend Matters has been collecting and publishing a series of forecasting trends in procurement, procurement and services for the coming year from industry-leading technology and service providers. This year, given the unpredictability of events throughout 2020/21, we instead asked solutions and service providers for their “wishes” for the year ahead.
We have defined the ‘wishes’ around how they would like to see their markets evolve, whether in terms of software or services, manpower or talent, sequels versus the best or even evolution of partnerships and ecosystems. This year’s themes tend to revolve around sustainable purchasing (thinking COP26 and ESG – see our ESG series here), tackling fragility versus resilience which we have heard a lot about. talk last year and optimizing decisions with software for supply chain analysis and scenario modeling. However, as you’ll see in some of the answers, we still can’t get rid of the urge to make predictions, which is understandable given that many companies are busy aligning next year’s activities with this. that they foresee!
Our series of greetings will run from mid-December to early January, then our analyst Bertrand Maltaverne will end with his own take on the key emerging themes.
In no order of preference, except on the date of their arrival in our digital mailbox, today let’s listen to the three wishes / predictions for 2022 from:
Ian Thompson, British Managing Director of Ivalua, a unified source-to-pay suite provider and one of the 50 Spend Matters:
1. Shortages could mean abandoning the just-in-time culture
The ripples of the pandemic, surges in energy prices and the shortage of truck drivers will continue to cause shortages in 2022. Organizations and consumers must be prepared to face more limited choices. For example, there may be 4 options for olive oil instead of 20 in the supermarket, all of which are priced slightly higher. But, having less choice could present a more sustainable way for 7 billion people around the world to live together.
With less saturation and competition driving costs beyond what is reasonable, organizations and suppliers can move away from “just-in-time” supply chain models that reward suppliers pressing on productivity and the costs. Instead, this is a golden opportunity to focus on long-term ways to add value, such as improving sustainability, confirming responsible work practices, and collaborating. on better quality products.
2. We will see greater flexibility in the supply chain following the “gray swan” events
It was a dramatic start to the decade. Organizations have faced multiple “black swan” events. But, in the future, we are likely to see smaller and more frequent disruptions caused by shortages, geopolitical events, and ripples from ongoing crises, such as the pandemic. Organizations need to learn from the recent disruptions and make sure they equip themselves with the technology, people, and mindset to ensure their supply chains are flexible enough to respond.
This means improving visibility into suppliers and their abilities to enable collaboration, and thinking outside the box to meet demand and create new, innovative products. We’ve seen this before during the pandemic as L’Oréal pivoted to producing a hand sanitizer for hospitals and nursing homes, and Decathlon used 3D printing technology to convert scuba masks into ventilators. . In the latter case, we’ll see more and more vendors using 3D printing to expand their capabilities and work with companies to create innovative products that solve problems as they arise.
3. Organizations will be held responsible for greenwashing or bad working practices
In 2022, environmentalists will be held to account, as the Green Claims Code will verify environmental claims and ensure that organizations comply with existing laws on unfair trade practices and do not mislead consumers. This is part of a shift where companies don’t just have to be seen doing the right thing, they have to justify it – especially as the public and government are pressuring companies to do the right thing. reduce carbon emissions.
The Modern Slavery Act in the UK is also set to start imposing millions of fines, and even jail time in some cases, for bad practices in supply chains. As such, organizations need to strengthen their ESG strategies to drive meaningful change and reduce the risk of non-compliance. To make this a reality, shopping must become smarter. Most importantly, organizations must have adequate data to identify and avoid partners with unethical working practices. They need 360 degree visibility into their immediate suppliers, contractors and sub-contractors. To do this, organizations need the right tools to ensure data reliability and facilitate quick and efficient decision-making. Otherwise, cases of poor labor standards can easily slip through the cracks and put organizations at risk of collapsing.
Thanks to Ivalua, and look for more wishes / predictions from solution and service providers over the next few weeks, with a big picture of our analyst series at the end. Check out more vendor forecasts and wishes here with our analyst feedback from last year.
If you are looking for a procurement technology to meet your wishes for 2022, try Spend Matters TechMatchSM to compare and shortlist suppliers.
And if you’re looking for Procurement Service Providers to help you with your 2022 decisions, look no further than our Procurement Services Market Landscape Directory.