As we approach the beginning of a new year, the procurement landscape is gearing up for a year filled with unique challenges. At Atamis, we pride ourselves on being at the forefront of procurement software innovation. We thought it was a good time to explore the top five challenges that we believe will shape the path ahead for procurement teams in 2024.

1. Commercial Challenge: Efficient Cost Control in a Dynamic World

In an era where costs seem to only go up, procurement teams are tasked with driving efficiencies within the same budget. The procurement world is ever-changing and, with constantly evolving challenges, teams must find creative solutions to bring costs down without compromising quality. This commercial challenge is a tightrope walk that requires agility, strategic thinking and innovative approaches.

2. Contract Management: A Clear View for Value Realisation

Effective contract management is not just a necessity; it’s a game-changer. Procurement teams need a centralised and comprehensive view of their supply chain to identify opportunities for improvement and value realisation. Clear monitoring of contracts throughout their lifecycle ensures timely renewal negotiations, and vigilant SLA monitoring empowers organisations to unlock maximum value in their supply chains. It’s about being able to visualise opportunities and optimise for sustained success.

3. Risk Mitigation: Navigating an Increasingly Unpredictable Landscape

The year 2023 showcased the world’s unpredictability with geopolitical events unfolding in Ukraine and the Middle East. Along with the tragic human cost, these global events, of course, have far-reaching consequences, impacting procurement costs and freight times. The constant worry about oil prices adds another layer to the complexity. Procurement teams in 2024 face the challenge of mitigating risks in an ever-shifting landscape, safeguarding their organisations from the ripple effects of global uncertainties.

4. Procurement Reform: Adapting to Legislative Changes

In the UK, a wave of new legislation is expected to land in October 2024, propelling public procurement teams into a period of preparation. The first half of the year will see teams gearing up to remain compliant in the face of these changes. Navigating the intricacies of the new legal landscape is a challenge that demands foresight, strategic planning and a commitment to staying ahead of the curve. At Atamis, we’ve initiated an internal project to ensure our technical teams are prepared to launch solutions that support teams in remaining compliant and driving efficiencies in line with these legislative changes.

5. Sustainability: Balancing Responsibility with Operational Challenges

As teams grapple with the first four challenges on our list, the call for sustainability adds another layer of complexity. Embracing sustainable sourcing is not just a trend; it’s a responsibility and a duty. Procurement teams are faced with the delicate task of managing and meeting the challenges posed by commercial pressures, effective contract management, risk mitigation and legislative changes, while prioritising sustainability. The balancing act requires a thoughtful approach and a commitment to environmental responsibility.

As we bid farewell to 2023 and embrace the challenges of 2024, procurement teams find themselves at the intersection of innovation and accountability. At Atamis, we understand the intricacies of the procurement landscape, and we’re here to support your team in facing these challenges head-on. Our state-of-the-art software solution is crafted to empower your procurement teams.