Holger Dermann, Project Manager eBusiness & Services at the Hoffmann Group, explains his forecast for 2024 in a short technical article. Important topics such as the shortage of skilled workers, the Supply Chain Act and digitalization will continue to pose major challenges for companies in the coming years. Countermeasures must be taken at an early stage.
The shortage of skilled workers affects all company departments and remains one of the biggest operational challenges, including for procurement. Companies are struggling with a smaller pool of applicants and also have to compensate for more frequent staff changes. There is great potential here in e-procurement platforms that relieve the burden on personnel through digital and automated processes. This makes it easy to reallocate tied-up resources so that employees can use their time for strategic tasks. Overall, digital media are indispensable for integrating new staff into operational processes as quickly as possible. Digitalization is a decisive factor in being an attractive employer for the younger generation.
"It's unthinkable that trainees with a digital leisure life in the company would still be filling out pieces of paper - not to mention creating paper-based catalogs."
Holger Dermann
Project Manager eBusiness & Services, Hoffmann Group
Increasing productivity in response to margin pressure
Everycompany has to optimize costs. This makes price negotiations more challenging. They are also made more difficult by rising raw material prices. This creates high pressure on margins, which will continue in 2024. Companies must therefore make the most of their margins. This can only be achieved by optimizing processes through automation and the resulting increase in productivity. In the purchasing department, this could be the introduction of an e-procurement platform. As long as the ordering process takes place on paper and the product and price overviews in catalogs that are difficult to update, too many employees are trapped in processes that are too time-consuming and therefore cost-intensive. And ultimately, excessive process costs melt away any possible margin.
Realizing quick savings potential through digitalization
Companies need to bring transparency to their purchasing processes and the flow of goods, especially in the area of C-parts, in order to identify optimal savings potential. Maverick buying is one of the biggest enemies of strategically optimized purchasing behaviour, because employees order materials in an uncontrolled manner that bypasses the purchasing department. This obscures the actual demand and makes strategies for potential savings almost impossible. Companies need to show clear paths, for example using digital tools that guide purchasing behavior within departments along predefined paths. Clear price lists in e-procurement systems ensure that materials are always purchased at the best price-performance ratio.
Conclusion: mastering challenges with smart technologies
Whether it's a shortage of skilled workers, cost reductions or pressure on margins, procurement management is facing some major challenges this year. But these need not be a spectre, as they can be solved quickly and cost-effectively with the help of smart technologies such as e-procurement platforms, process optimization and the digitalization of purchasing processes.
