The global supply chain management and procurement software market grew 7.3 percent to $8.9bn last year, with small vendors combined significantly outpacing the overall industry growth rate, according to Gartner. Supply chain investments remained a high priority even as IT budget decision makers continued to exercise caution.
A shift is underway for distributors of industrial supplies and the e-commerce experience they provide to their customers. In 2013, more than 63 percent of industrial supply buyers said they made purchases online, with half of those purchasers spending at least 50 percent of their annual budget with suppliers who have an e-commerce platform.
Procurement leaders are expanding their priorities for 2014, moving beyond a historic emphasis on reducing purchase costs and adding focus on expanding and deepening the scope of spend influence as well as supporting supplier-led product innovation, according to 2014 Procurement Key Issues research from The Hackett Group Inc.
Analyst Insight: Alignment is the number one strategy to increase business value. Alignment is realized when the business strategy, functions, employees, business processes and technology are optimized for growth and profitability resulting in substantial shareholder returns. Procurement’s opportunity for excellence begins with alignment to the business and the broader enterprise strategy. – Mickey North Rizza, BravoSolution
Rapid changes in the health care industry are impacting supply chain planning and execution. Philip Profeta, vice president of supply chain operations at Baylor, Scott & White Health Care, discusses the implications.