5 Procurement Trends You Need to Know for a Successful 2022
The start of a new year is a great time to take stock of things, consider what the next twelve months might bring, and adjust your strategy accordingly.
With the impact of the pandemic still being felt and the introduction of technologies innovating the way we do business, the world of procurement has undergone more changes in the last two years than in the previous ten combined.
We’re only in the second week of 2022, but we can already see some of the major trends that will influence procurement throughout the year. Let’s take a look at five of the most important of those trends and how they can help you boost your procurement function throughout the year.
1. Technology Solutions Will Take Center Stage
With disruption and uncertainty still disrupting the global supply chain, efficiency gains are understandably a huge priority for procurement teams. One of the best ways to gain efficiency and meet disruptions head on, especially with a smaller procurement team, is using technology to your advantage. Fortunately, procurement tech has come a long way.
The old way of doing things—spreadsheets, cold calls, keeping track of documents through email, etc.—was a primary roadblock over the last few years. Using technology to eliminate siloed communications, ensure contracts are up to date, and keep track of relevant documents is proving to be one of the most effective methods to build a procurement strategy for the modern age. In fact, if you’re not already leveraging technology for procurement, you’re falling behind the curve. CompareCoOps’ platform was built around the idea of addressing these issues.
2. Usage of Cooperative Contracts Will Continues to Grow
Total spend through cooperative contracts has been growing year over year for some time now and it does not appear to be slowing down. The impact of the pandemic has only bolstered the desire by public agencies for more competitive pricing on contracts. By allowing agencies to combine their purchasing power to gain leverage during negotiations, cooperative contracts have proven to be an incredibly useful tool. Supply chain disruptions also proved to be a huge challenge during the pandemic. Public agencies appreciated the established suppliers and reliable products facilitated by cooperative contracts.
It’s difficult to say what effect the pandemic will have throughout the entirety of the year, but public agencies are now fully aware of just how useful cooperative contracts are when staring down uncertainty. Expect cooperative purchasing to continue growing in public purchasing in 2022 and plan accordingly.
3. Government Funding Will Keep Boosting Procurement
The Biden Administration passed an infrastructure bill allocating $1 trillion in funds to be spent by state and local agencies on a range of public interests over the next ten years. This is a massive deal for procurement professionals and suppliers alike. Agencies on federal, state, and local levels should look for ways to use this funding and apply for grants as soon as possible.
As always, there will be different requirements for agencies to meet compliance for this funding. Cooperative contracts should be written with those requirements in mind. CompareCoOps is an easy and efficient way to ensure compliance during this vital time. Our locked-down processes and strong audit trail can transform any public procurement professional into a compliance master. Any legal (or other) requirements can be added to the system quickly and easily, helping you do your due diligence, get exactly what you need, and stay within the requirements for this new federal funding.
4. Relationship Building Will Thrive
It has been a long couple of years, but we finally started returning to in-person events near the end of 2021. We’ve all gotten the hang of remote working and relationship management via Zoom calls, but there’s no substitution for talking to somebody face-to-face. As we start seeing more of each other while also leveraging our newly developed remote working skills, relationships between agencies, suppliers, and industry vendors will continue to grow and help the industry rise to meet challenges, new and ongoing alike. Never discount the power of relationships. At the end of the day, we’re all in this together.
CompareCoOps makes communication between agencies and suppliers much easier. Agencies can request quotes on contracts and suppliers can respond, all directly inside the platform. It’s a great way to find and build new relationships. The best part? Signing up is free!
5. Sustainability and Ethical Sourcing Will Stay Relevant
Another trend from last year that’s carrying over into 2022 is the increased focus on sourcing sustainable and ethically sourced items through procurement. As governmental regulations around environmentally friendly practices continue to impact the way we all do business and more and more agencies adopt green initiatives, sustainable procurement will remain a hot topic.
We wish everyone luck in 2022 and beyond. If you’d like to learn more about how CompareCoOps can help set you up for a successful year, set up some time with our team today! If you’re ready to sign up for free, you can do so here.
