Purchasing Future Trends 2013 and Beyond

Traditional Purchasing organizations and jobs will transform more in the next 5 years than the previous 100 years The changes are beyond recent developments of:

• Globalization,
• LCC Sourcing,
• Introduction of operational systems (SAP, Oracle),
• Introduction of new tools (tablets, smart phones.

In fact it is arguable that any of the above items, which certainly have changed global business, have really changed how organizations purchase other than perhaps digitizing steps in the old process. (For example electronic requisition instead of paper ones)
However, even with the coming changes the is not necessarily an expensive implementation cost for software, consultants, hardware etc... As a result Fortune 100 companies do not have any real advantage in responding to changes to gain a competitive advantage over small to mid-sized companies. In fact because of the massive investment in enterprise solutions and processes they maybe at a disadvantage.
Before discussing the changes and what Purchasing and Supply people should do to prepare lets talk about what you should forget.

• Being an expert with excel, access, worksheets etc.
• Focus on cost savings.
• Purchasing centric individual quantitative measures of how many transactions and how fast.
• Blaming other departments for inability to deliver better results
• You must sit at your desk and process transaction. (Better to get rid of your desk altogether)

The above skills and approaches were and still are common. Now they are not going to be relevant and will label you as not being ready for the changes.
So what will change in the next couple of years and what do you need to start thinking about?

• Everything becomes a commodity
• Syndicated Commerce World class tools and supply chains are available for all sizes of organizations at essential no cost Everyone is a Buyer and Seller Purchasing contributes directly to revenue generation as well as cost saving
• Big Data will: Smooth planning cycles - end of "Bullwhip Effect" Create relevance to offers to Buyers that create more specific value
• Creating a better Purchasing customer experience will be key to drive value
• Procure to pay operations will be totally automated.
• The word foreign is losing its meaning (Borrowed from United Airlines)

How can you prepare now to survive the transition? In every job whether operational or strategic be ready to, explain current process and present how to revolutionize it. Start to understand use of "Big Data" and 'Syndicated Commerce." Do not be afraid to be part of transformation of process - become process owner and manager
Becoming a deep subject matter expert Commodity Manager will be a high reward job. In fact better for 2 subject categories.
Once the transition is complete what will you then need to thrive?

• Much more Strategic view with ability to contribute directly to revenue generation
• Strong IT understanding on a systems level with ability to deliver systems that match "internal customers needs.
• Truly global view and experience
• Soft Skills more important

There is no question that young people graduating from undergraduate and masters courses in Purchasing and Supply will have these views. Also it is very likely that the function of Purchasing and Supply does not rest mainly in a single organization but rather is more dispersed across organizations. What will be more centralized is the development of tools, collection and use of Big Data and the recruitment,development and management of global purchasing and supply professionals. The end result for those with the right talent and motivation will be opportunities for wealth, growth and leadership that were unthinkable even 20 years ago. A glimpse of that potential is Tim Cook who leads Apple now and essentially worked his way to that position by his expertise developing the world-class supply chain of the most valuable company in the world.

Increase the Performance

The performance of commercial flooring is as good as the product will allow. However, there are numerous things that you can implement that will increase the lifecycle and performance of a new floor covering.

Carpet should be maintained using a correct maintenance programme by a professional cleaning company from the moment it is installed, this should comprise of regular visits to carry out spot removal and deep cleaning to high traffic areas. The application of a carpet protector spray will help with the cleaning, maintenance and performance of the carpet, what it won't do is provide bullet proof protection for the carpet as many people believe will be the case. If staff have access to drinks machine or kitchen areas where they make food or drinks, these areas should be monitored closely and if tea/coffee spillages are becoming a problem consider limiting drinks to specific areas that can be contained.

Vinyl floors can range from basic tiles through to luxury vinyl tiles incorporating a PU sealant. The floor type will depend on the installation type, foot traffic and what happens on a cleaning and maintenance basis, if a vinyl floor has been installed in a warehouse environment, the foot traffic is heavy, it will need an additional protective sealant applied to maintain the surface. Like most floor coverings it is the grit and dirt that will affect and damage the surface, it is important to minimise this as much as possible especially in high footfall areas where is can quickly scratch the tile surface if not sealed. PU sealants are available for further protection, these will provide a lot more protection against the traditional dressings or emulsion polishes and will carry a 3 year warranty in some cases.

Stone is a luxury product that finds its way into various commercial buildings, whether it is marble, granite, slate, limestone, travertine, basalt, sandstone or some other natural stone. These products have been perceived to be very hard wearing and almost maintenance free in the past, it should not be overlooked as a material that requires no maintenance! All of the above stone types can be diamond ground to a smooth finish that will enhance the appearance, this can be enhanced further by specialist sealants, colour enhancers, vitrification processes. Sealants can vary dramatically in quality, some are topical and others are impregnating, water or solvent based, the use of the correct sealant will extend the lifespan, performance and appearance of such a beautiful natural material.

Wood has been increasing in popularity since the late 90's and has made its way into numerous commercial venues ranging from sports arenas to high street wine bars. All will need regular maintenance or treatment to extend the lifecycle of the chosen timber, this can be dependent on where the floor is installed, what type of timber it is, hardwood or softwood and even what type of floor has been installed, solid or engineered (egineered has a wear layer of real wood on a softwood backing). Foot fall and access for treatment will determin the type of finish to choose, lacquers, oils, wax-oils all provide varying levels of protection, lacquers are the most hard wearing and layers can be applied to provide a very hard wearing finish in very high traffic areas. Oils and wax-oils are still a commercial option as they can be layered also, they will give a more natural appearance, however the drying times and window of opportunity have to be considered in all product options. If the wood is maintained properly it will extend the lifecycle of the floor for many years.