Top 7 Procurement Trends for 2024

Since ancient history, procurement has evolved through leaps and bounds. Technological developments have been the most dramatic transformations, with the rise of eSourcing technologies at the beginning of the millennium. Over the past two decades, notable trends have taken shape across the entire procurement landscape, with digital transformation taking center stage. In this post, we highlight the top seven procurement trends for 2024 that every organization and procurement professional should take note of. 

  1. Digital Transformation

Digital transformation has been at the center of the procurement revolution for decades. Most recent trends have seen the entry of cloud-based, blockchain and mobile technologies in sourcing, just to name a few. These trends are set to shape the procurement landscape in 2024, even as organizations adopt tighter cybersecurity procedures and policies to secure systems from the increasing threat of exposure. 

Spreadsheets and paper contracts are exiting the scene, with more organizations embracing procurement digitalization and automation. eProcurement has seen the digitalizing of the entire procurement from requisitioning, purchasing, ordering, invoicing, and payment. 

Data accuracy, advanced analytics, cost reduction, and supply chain optimization are some of the motivations behind digital transformation. Other key benefits organizations are reaping from the digitalization of the procurement process are better risk management, increased transparency, and stronger supplier relationships. 

In the private sector, some companies are opting for externally hosted eProcurement services, while large entities are investing in enterprise-wide software to manage their procurement in-house. Governments and non-governmental organizations are also stepping up their sourcing with the adoption of eProcurement solutions.  

  1. Regulatory Compliance

Regulatory compliance means adhering to local, regional, and national laws and regulations governing production and procurement procedures. Procurement compliance minimizes risks in organizations and promotes controlled spending. With diverse regulatory requirements throughout the supply chain, organizations must always remain on top of their compliance to minimize risks.

Top compliance challenges facing most companies include regulatory changes and cybersecurity compliance. In 2024, organizations will increasingly pay attention to regulatory compliance to overcome these and other challenges and minimize the potential risks. This will involve adopting measures such as tightening cybersecurity safeguards, improving supplier selection (e.g., by maintaining an approved supplier list), and performing regular audits of the procurement procedures.

  1. Globalization

Globalization has enabled organizations to explore sourcing opportunities across borders more efficiently. The trend is set to continue in 2024 as more organizations tap into overseas markets to access a large and diverse selection of products. 

Notable benefits fueling globalization trends in procurement include access to higher-quality products, a larger pool of suppliers, and cost savings. However, procurement professionals and buying organizations must be aware of the potential challenges and implement appropriate measures to mitigate them. They must be adequately equipped to handle the increased supply chain complexity and accompanying risks. For instance, countries have unique legal systems, which adds to the complexity of overseas sourcing.  

  1. Cybersecurity

With the increasing adoption of digital transformation in the procurement landscape comes increased cybersecurity threats. Organizations store and share sensitive information such as vendor names and addresses, as well as account and tax information, which are exposed to data breach risks. 2024 will see more organizations tighten their cybersecurity to safeguard systems against increased exposure. 

Security Scorecard recommends tips for creating a robust risk management program to reduce the risks, such as collaborating with IT for additional technological resources, assessing potential endpoint security risks, exercising due diligence with ERP usage, and implementing data encryption. Other key safeguards to consider are investing in robust cybersecurity solutions, conducting staff training on cybersecurity, and developing a security framework.

  1. Diversity and Inclusion

Supply chain diversification is an ongoing trend expected to stick in 2024. With the growing trend of globalization, organizations are increasingly exploring new markets globally to source products and services. By embracing diversity and inclusion, companies are breaking geographical barriers, allowing diverse suppliers to win contracts, which not only improves procurement quality but helps enhance brand reputation.

If you're set to step up diversity and inclusion in your procurement in 2024, consider the following four tips we shared in one of our earlier posts:

  • Connect with certifying bodies to strengthen your supply chain
  • Broaden your emergency list
  • Build a supplier diversity program
  • Enable online submissions
  1. Data Analytics

Data powers decision-making and better outcomes. Using analytics has been around for a while, and we are going to see increased reliance on big data in procurement even more in 2024. Procurement professionals are leveraging data to understand supplier performance and gain market insights for better decision-making. 

  1. Generative AI

Generative AI is artificial intelligence that can generate diverse content types such as text, audio, video, and imagery. Integration of generative AI in procurement has gained vast popularity, and the trend is set to carry on in 2024. For instance, the adoption of conversational AI has increasingly boosted productivity among procurement professionals.

As Deloitte notes, companies can leverage generative AI to address procurement challenges in the following ways: 

  • Simplifying complex manual processes by crunching large data sets
  • Increasing efficiency by leveraging complex automation
  • Generating data insights on trends, supplier performance, etc.
  • Creating better negotiation strategies by combining internal and external data

Other beneficial applications of generative AI include compliance management, strategy development, textual data analysis, and predictive modelling. 

Streamline Your Procurement in 2024 with bids&tenders eProcurement Solution

Procurement trends in 2024 are all leaning towards fostering an efficient, safe, compliant, and revolutionary procurement landscape. At bids&tenders, we are here to power your strategy as you work towards aligning your organization to the latest trends. Our eProcurement solution is designed to support your digital transformation goals, enhance compliance and security, and streamline smooth workflows while providing valuable insights for evaluation and decision-making.  For more information on our software or to get started, book a demo.

Get in touch with us

Fill in the form and one of our account executives will be in touch with you shortly.