The Future of Procurement: 2020: Prices Go Transparent

Negotiation will become a lost art in the future as prices become transparent due to e-sourcing, global trading networks, and on-line communities.

This move away from the price negotiation model will put a much greater emphasis on assembling the correct portfolio of suppliers, and the collaborative development of innovation and other values from supplier bases. This will include the creation of exclusive relationships with primary suppliers that share both roles and rewards.

Procurement will need to shift from generating savings through price cuts to savings derived from volume discounts and rebates, or through early payment of invoices. Going forward, there will be far less of an emphasis on savings, and more of a focus on bringing innovation and value, and of finding new ways of delivering competitive advantage to both sides of every agreement.

Adapted from VISION 2020: Ideas for Procurement in 2020 by Industry Leading Procurement Executives http://bit.ly/kIwoW3