Have you wondered where supply chain management (SCM) trends are going?
>>If you’re interested in Analyzing Purchasing Trends for 2014, click here.
You want to stay ahead of the game, and you want to be one of the pioneers in implementing a SCM practice before it’s too late.
The reason is simple: good business practices translate into strong competitive advantages.
But SCM is a large field with numerous areas of research. However, by using the extensive literature review by Gianluco Spina et al (2013), we’re able to begin analyzing purchasing trends.
The reason why we are analyzing purchasing trends is because it provides an understanding of the “strategic approach to planning for and acquiring the organization’s current and future needs through effectively managing the supply base” (Spina et al, 2013).
The importance of understanding purchasing trends cannot be underestimated. Due to the ever-increasing globalization of our world through information-communications technology, businesses are actively participating beyond their geographical and national locations.
The geographic location adds high levels of uncertainty due to numerous reasons including but not limited to: loss of quality control, difficulty in communication, political stability, and corporate social responsibility.
Outsourcing is growing as a favourite practice amongst numerous companies in the manufacturing sector. And, as outsourcing grows as a business practice, companies tend to spend more on procurement, commodities, specialty goods, and customized services (Spina et al, 2013).
Furthermore, e-commerce and e-business is growing ever stronger due to the ever-increasing usage of the Internet in our daily life. What is e-commerce? E-commerce is the implementation, design, purchasing, production, sales, and communication functions using electronic networks (Gun & Atakan-Duman, 2013).
The results of Gianluco Spina’s research highlights these trending topics by analyzing purchasing trends:
Within purchasing and supply management processes, reverse marketing, contract management, and supply network configuration. The growth of contract management has been astoundingly fast, and reverse marketing has remained a trending topic in business processes since 2002.
Within purchasing and supply management practices; outsourcing, local vs. global sourcing, and risk management have been growing significantly as topics. Overall, purchasing and supply management practices have been the fastest growing area of focus for academics.
Competitive priorities find that cost, innovation, and time remain as the highest trending topics within purchasing and supply management.
And the least growing topic is organization, focusing on relationships and partnerships (Spina et al, 2013).