Procurement in transition: Frank Sundermann on trends and challenges in 2024

After last week's exciting review, today we turn our attention to the coming year.

As promised, we have another expert interview with Mr. Frank Sundermann, Managing Director of the management consultancy Durch Denken Vorne Consult GmbH (DDVC) and a very valuable partner of SCALUE GmbH, who shares his predictions for 2024 with us.

Mr. Sundermann, based on your experiences and insights, what key trends do you see for procurement and finance leaders in 2024? Are there specific innovations or market changes that you would particularly emphasize?

I'd like to highlight two points:

1. Economic Situation:
When talking to various companies in the manufacturing sector, they report declining orders. The economic situation is becoming more challenging. This means a stronger focus on costs and inventory for procurement. It's crucial that procurement is properly equipped and has the right tools (keyword: data transparency).

2. Shortage of skilled specialists:
The aging of employees and the lack of replacements is a bit like the climate crisis. It's gradual, and despite clear consequences, not enough is being done. For the skill shortage in procurement, this means full throttle digitalization and automation. Every procurement leader should now consider how to handle 30% more purchasing volume with half the team in 5 years. Robotic Process Automation, eProcurement, and Autodisposition are just a few examples.

Considering the rapid technological developments, what three specific measures, especially in the field of technology, would you recommend to companies to quickly rise to the level of leading companies? Can you give examples of technologies or approaches that you think are particularly effective?

I would recommend the following to companies:

a) Create a digitalization roadmap, outlining what you want to tackle in the next few years.

b) Develop a training planon how to train your employees for this stronger strategic work with various digital tools.

c) Request a permanent budget for this transformation from your management. My tip for budget allocation per year: Either 1 per thousand of the purchasing volume or 5% of the cost center costs.

How do you assess the future importance of data transparency and availability in procurement? What effects do you expect on decision-making and strategy development in procurement departments?

The importance of transparency is essential. Only then can good decisions be made. What I expect in the coming years is that systems like ChatGPT will assist us in making optimal procurement decisions. Currently, at Durch Denken Vorne Consult, we are building a DDVC-ChatGPT that will be available to all users on the ChatGPT platform. This will allow targeted procurement questions, and DDVC-ChatGPT, with our years of knowledge, can provide good answers.

What do you believe will happen to companies that do not recognize the current trends and the importance of data transparency for procurement? How will they position themselves compared to their competition?

The answer is clear. They will lose because their products are too expensive or take too long. And when times get tough, they will disappear.

Would you like to learn more about how SCALUE's solution can help optimize your procurement in 2024?

Schedule a free demo now!

To what extent do you think procurement analytics solutions will play a role for medium-sized companies in 2024, especially regarding upcoming trends?

Any medium-sized company that does not engage with such solutions by 2024 will belong to these losers. The term "medium-sized" must not serve as an excuse for doing nothing. There are absolutely medium-sized analytics solutions. The crucial point is to tackle it and convince the management that procurement also needs top-notch analysis tools.

Mr. Sundermann, we would like to thank you for this informative interview and wish you a successful 2024 and are looking forward to the DDVC ChatGPT.

How SCALUE can help you? Schedule a free demo now!

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Interview November 24th, 2023 Procurement in transition: Frank Sundermann on trends and challenges in 2024 Rubina Hatziparassidis

Interview November 24th, 2023 Procurement in transition: Frank Sundermann on trends and challenges in 2024

Rubina Hatziparassidis