Over the past two years, the challenges posed by Covid-19 and disruptive technologies in supply chains have contributed to making the purchasing area even more strategic for organizations.
Today, the sector's leading role in achieving results and competitiveness is clear. Therefore, it is important that purchasing professionals are up to date and adapt to the changes that are occurring and shaping the procurement of the future.
But although purchasing has gained traction in business, there are some myths related to the activity that hinder the speed of its evolution. Believing that technology is not a tool that helps buyers, for example, is one of them.
With this in mind, we have listed 7 myths that surround the purchasing area and buyers, and that need to be left aside forever.
Enjoy reading!
7 myths that hinder the evolution of the purchasing area
Myth 1 – Keeping up to date with world events is not relevant
International scenarios can affect purchasing decisions. Therefore, it is important to be aware of current events, for example, in politics, the economy and business in general.
Health crises, geopolitical conflicts, shortages in product supply, inflationary pressure, among other factors, have led companies to rethink their business models.
We recently published on the ME blog a article about the conflict between Russia and Ukraine and its impacts on the supply chain, such as the shift from global to local supply chains.
Myth 2 – Diversifying your supplier base is not that necessary
The dynamism of the B2B market and the uncertain scenarios require the purchasing department to constantly seek supply alternatives.
Having a broad portfolio of partners reduces the risk of non-supply and increases the chances of keeping operations running.
In addition to the diversified base, maintaining good supplier relationship and considering their participation in processes that go beyond purchasing, strengthens the organization's innovation and performance.
Myth 3 – Automating purchasing processes is not a priority for companies
To act more intelligently and strategically in organizations, the professional buyer needs to be freed from operational activities, which end up taking up a lot of their time.
By automating the purchasing cycle through digital solutions, buyers can focus on innovation, for example, an essential factor for the competitiveness of companies today.
Furthermore, access to data and information made available in the tools helps to bring insights important for planning, analysis and adjustment of purchasing strategy.
Myth 4 – Shopping technologies will replace the work of buyers
The most recent event, the Covid-19 pandemic, has redefined work formats and accelerated the digital transformation process in the purchasing area.
The digitalization of manual processes, through solutions, is probably one of the biggest fears that haunt buyers, who believe that their performance will be discarded.
But, contrary to the myth, digitalizing purchases helps improve team performance, increases the chances of savings and generates more productivity, innovation and competitiveness.
Myth 5 – Making data-driven decisions is hard work
Increasingly, buyers need to not only collect, but also know how to strategically analyze available data on industry acquisitions.
Through digital solutions, purchasing professionals have quick access to reports and KPIs and, by monitoring and measuring the area’s performance, you can make the best decisions.
Without access to data and information, the purchasing department works only on assumptions, which increases the chances of making wrong choices and financial loss.
Myth 6 – ESG is a fad, not a trend
To survive from now on, companies need to be increasingly sustainable. This is because, more than a trend, sustainability is a tool for innovation.
Keeping a close eye on the supply chain and choosing reliable partners are examples of fundamental actions to adapt to practices ESG (acronym for environmental, social and governance).
After all, the choice of raw material and suppliers has a total impact on the product that will be used by the end consumer, who is increasingly aware of these issues.
Myth 7 – Technical skills are more important than behavioral skills
In the purchasing area, technical knowledge is very relevant, but it is not enough for the success of the purchasing professional in the future.
Professional buyers need to make strategic decisions frequently. For this reason, behavioral skills are the most sought-after skills today.
Creativity, emotional intelligence, mindset of growth and collaborative leadership are some examples of skills expected by companies from professionals working in purchasing.
In this article, we share some myths that still surround the purchasing area and buyers, preventing the growth of the department and professionals.
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