Top 5 2012 Procurement Predictions
Rosslyn Analytics, the leader in one-click data discovery and business intelligence software, has revealed its technology predictions for procurement executives in 2012. These predictions have been developed based on conversations with customers, partners and industry experts.
“Change is coming fast and furious in 2012 with procurement leading the adoption of Web 3.0,” said Charles Clark, CEO of Rosslyn Analytics.
“In 2012, we will see the mass take-up of cloud computing-delivered data services across entire organizations. This disruptive trend will be largely driven by technology-savvy mid-to entry-level procurement team members who, expecting information at the click of a mouse, will influence procurement’s own internal buying requirements.”
1. Procurement becomes the hero and the loser.As executive teams realize the value procurement has delivered for their organizations, e.g., improved profitability, Finance will assert more ownership of the purchasing function. On the flip side, procurement’s stature will continue to grow internally, becoming a strategic business advisor to internal stakeholders.
2. Spend data loses its independence.Organizations seeking to do more with less will leverage reporting platforms bought for and used by procurement for other parts of the business. Procurement’s hands-on knowledge of new technologies such as cloud-based data services will be relied on by internal stakeholders, resulting in the proliferation and use of spend intelligence across their organizations from virtual hubs of knowledge.
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3. Procurement takes over compliance. From managing their organization’s reputation with suppliers to tracking supply chain-centric financial and environmental liabilities, Procurement will increasingly become responsible for enterprise-wide compliance initiatives.A factor driving this trend is procurement’s adoption of new technologies that makes centralizing all enterprise-wide data easier to obtain, manage and assess.
4. Purchasing teams embrace cloud computing. Entire procurement and supply chain departments will move away en masse from overly complex ERP-built reporting tools. Instead, purchasers will embrace Apple-style end-user friendly cloud-based analytical platforms which enable users to buy from enterprise app stores reporting tools including enrichment services 24/7.
5. Tactical outsourcing gains popularity. Chief procurement officers will outsource tactical, costly transactional work to specialist companies while maintaining hands-on control of strategic imperatives such as managing supplier relations. This shift in mentality is being driven by the need for businesses to reduce non-core costs, retain talented employees and accelerate business value creation.
Edited by Kevin Scarpati
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”