When an analyst report uses terms like “D.O.A.” and predicts that A.I. will be Time magazine’s “Person of the Year,” you know it’s going to be a good way to spend 10 minutes absorbing the content. It’s always thought-provoking to kick off each year with analyst firm Ardent Partners’ Procurement Big Trends and Predictions report. Ardent Partners’ chief research officer Andrew Bartolini has a way of cutting through the noise to deliver clear points of view, and the 2023 report is no different.
One of the most emphatic statements he delivers in the new report is that: “CPOs running their procurement operations without visibility into their spend are committing procurement malpractice.”
Why such a strong take?
Not having comprehensive, accurate visibility into your spend data (including everything from data that’s decentralized across ERP systems, P-card tracking, source-to-pay apps, AP systems, and more) negatively impacts that quality of procurement strategy and decision-making.
The report calling a lack of spend visibility “dead on arrival” also ties strongly to another of its big predictions, which is that it’s an increasing imperative of Chief Procurement Officers to pursue “digital intelligence.” As Procurement orgs get further along in their digital transformation journeys, the expectation is to be able to access great data and make it useful.
Other important trends and predictions highlighted in the 2023 report review the importance of grappling with inflationary pricing and mitigating its impacts on procurement performance.
ESG (environmental, social and governance) initiatives and corporate strategies also get a bold callout, as both government regulations and market pressures mean that procurement must play a more active role to support the business. From the report: “With more than half of the average enterprise’s ESG footprint resting with suppliers, the CPO is on the front lines in the fight to create a more sustainable value chain.”
Our Spend Intelligence solution and tech-enabled best practice spend data process for achieving exceptional visibility is something we would also love to share with anyone looking to drive improvements in that area. Our Procurement Performance Management platform helps to connect those strategic spend insights to procurement projects and value tracking for executive reporting. New capabilities in our offerings help procurement with ESG data enrichment, benchmarking, identifying and tracking projects with clear ESG goals, and measuring and auditing outcomes.
SpendHQ is a sponsor of the 2023 report, and we offer you a complimentary copy. Get yours today and grab a cup of your favorite beverage to enjoy!