In today’s environment, businesses around the world are more closely linked than ever before. Industries that are not directly integrated are still affected by global events and geopolitical factors; and with contractors being located throughout the world, the effects reverberate worldwide. As such, it is crucial for industry leaders, including procurement managers to be aware of the latest trends that may impact the outlook for the future.
Click on the infographic above to download this handy visual guide that summarizes these trends.
Oil Prices
Falling oil prices have had a major impact across all industries; and with low prices expected to continue in the foreseeable future, commodities prices will also fall. The impact will be most visible in the manufacturing, energy, plastics, and chemical industries. The net positive effect of falling oil prices will have an overall positive effect on economic activity and drive growth in Europe and China. Reduced transportation costs will also help boost revenue throughout the logistics sector.
Global Growth and Politics
The US is finally out of the fog, and growth across various sectors is expected to continue over the next few years. On the other hand, decreasing exports from Germany and the influx of migrants in Europe is fueling worries about the financial status of the Eurozone. Across the Middle East, an increased supply of oil is expected to keep prices down in the twenties and thirties. And in the Far East, China will continue to take advantage of its credit boom and serve to drive growth in Africa and Central Asia.
Climate Change and Sustainable Growth
The UN Climate Change Conference in Paris saw world leaders reaffirm their commitment to tackle climate change. This included agreeing to international emissions agreements, implementing domestic measures, and mobilizing $100 billion a year by 2020. Additionally, the US and China are also committed to slashing carbon emissions. Together, these initiatives are paving the way for growth in green energy and renewable resources. Sustainable initiatives will remain unaffected by falling oil prices in the long run, and become a key point for all businesses. By implementing these initiatives, manufacturers can stay ahead of the pack and lead the way to decreased consumption and efficient renewal processes.
A Shift in Focus
Apple’s success long after Microsoft became an industry leader has demonstrated the importance of product quality and paying attention to customers’ demands. With an increasing number of startups providing viable alternatives, particularly in the technology sector, a global shift in focus is expected towards more value driven delivery of products and services. This will also result in supply chains being expected to deliver faster and be more responsive to changing trends in markets.
Data Security
E-commerce sales have crossed 1 trillion dollars, and 40 percent of all internet users are ordering products or services online. These figures are only going to go up, and along with that, so is the need for data security. The use of Social, Mobile, Analytics, and Cloud based technology or SMAC will help promote a data driven model, where key trend analysis will pave the way for the supply chain process.
Up Next
No doubt that the months ahead will be challenging, but every cloud has a silver lining. As procurement leaders, it is up to us to turn these challenges into opportunities paving the way for swifter, accurate and holistic solutions.
We delve into identifying and understanding procurement trends across diverse industries. Subscribe below for our next report.
Falling oil prices have had a major impact across all industries; and with low prices expected to continue in the foreseeable future, commodities prices will also fall. The impact will be most visible in the manufacturing, energy, plastics, and chemical industries. The net positive effect of falling oil prices will have an overall positive effect on economic activity and drive growth in Europe and China. Reduced transportation costs will also help boost revenue throughout the logistics sector.
Global Growth and Politics
The US is finally out of the fog, and growth across various sectors is expected to continue over the next few years. On the other hand, decreasing exports from Germany and the influx of migrants in Europe is fueling worries about the financial status of the Eurozone. Across the Middle East, an increased supply of oil is expected to keep prices down in the twenties and thirties. And in the Far East, China will continue to take advantage of its credit boom and serve to drive growth in Africa and Central Asia.
Climate Change and Sustainable Growth
The UN Climate Change Conference in Paris saw world leaders reaffirm their commitment to tackle climate change. This included agreeing to international emissions agreements, implementing domestic measures, and mobilizing $100 billion a year by 2020. Additionally, the US and China are also committed to slashing carbon emissions. Together, these initiatives are paving the way for growth in green energy and renewable resources. Sustainable initiatives will remain unaffected by falling oil prices in the long run, and become a key point for all businesses. By implementing these initiatives, manufacturers can stay ahead of the pack and lead the way to decreased consumption and efficient renewal processes.
A Shift in Focus
Apple’s success long after Microsoft became an industry leader has demonstrated the importance of product quality and paying attention to customers’ demands. With an increasing number of startups providing viable alternatives, particularly in the technology sector, a global shift in focus is expected towards more value driven delivery of products and services. This will also result in supply chains being expected to deliver faster and be more responsive to changing trends in markets.
Data Security
E-commerce sales have crossed 1 trillion dollars, and 40 percent of all internet users are ordering products or services online. These figures are only going to go up, and along with that, so is the need for data security. The use of Social, Mobile, Analytics, and Cloud based technology or SMAC will help promote a data driven model, where key trend analysis will pave the way for the supply chain process.
Up Next
No doubt that the months ahead will be challenging, but every cloud has a silver lining. As procurement leaders, it is up to us to turn these challenges into opportunities paving the way for swifter, accurate and holistic solutions.
We delve into identifying and understanding procurement trends across diverse industries. Subscribe below for our next report.
