As we approach the close of 2024, we eagerly anticipate the opportunities that 2025 will bring. As the Director of LGP’s Strategic Procurement Solutions, December is always a time when I reflect on our achievements over the past year and contemplate where our focus and efforts will lie in the year ahead.
Strategic Procurement Solutions was relaunched on July 1, 2024, as our new brand name to distinguish us from various consulting disciplines. Our aim is to elevate our purpose and provide strategic and operational procurement solutions to the Local Government sector in NSW and beyond.
Reflections
We continue our focus on the four key areas identified and planned for FY25. LGP and Strategic Procurement Solutions consume information related to local government from all directions; including legislative, regulatory, governance, national, global, community and sustainability impacts. We create and deliver solutions based on the information we consume and the impacts the sector believes is in-focus. The four areas are all delivered through the ESG lens:
Ø Environmental – Circular Economy
Ø Social – Modern Slavery, next steps
Ø Governance – Contract Management Maturity
Ø Governance – Probity for spend over $5 Million
Looking ahead, LGP’s 2025 Networking events will feature a Round Table session hosted by Strategic Procurement Solutions. This interactive session will focus on contract management in local government and the steps to achieve maturity in this area. Additionally, our webinar series will continue under the Strategic Procurement Solutions banner, our planned webinars will continue to focus on the 4 areas identified this year. But as we deliver the FY25 program, we will also begin considering the themes and discussions for FY26.
What They Are Saying
In consuming all manner of procurement and sustainability information, the global trends of note are:
Ø AI; Adoption, Adaption and Assessment.
Ø People; Silver Workers, Attracting School Leavers, Taking a Seat at The Table.
Ø Strategies; Cost to Value, Risk Management, Category Management & ESG.
Whether its Automation or Artificial Intelligence, businesses around the world have adopted patches or even systems to achieve efficiencies, to free up their talent from administrative burdens. The idea of having hours of administration stripped from our people, allowing them to instead collaborate and innovate is intoxicating.
Consideration: Will our entry level talent loose the method of “learning the ropes”?
There is a trend where 60–70year olds continue to work to sustain their lifestyle impacted by changes in the global economy, and organisations are specifically seeking seasoned professionals to extend knowledge transfer and critical thinking skills.
At the same time organisations are challenged with attracting young talent. School leavers are unaware of the diverse and relevant procurement roles that offer rich and rewarding careers. I believe this is an area worth exploring.
Consideration: Can we widen procurement awareness to include school leavers?
Many organisations have realised years ago that Value is better than Low Cost. Some organisations at times fall back on the old lowest price = best price but in the long run “you get what you paid for” is a phrase that we would rather avoid.
We all learnt the hard way about procurement risk, the Pandemic of 2019 to 2022 upended the supply chain and everyone was impacted. Global conflicts, global economics and climate change all impact procurement, and we all need to plan for events to ensure supply chain continuity.
Category Management is transitioning from tactical to strategic. Just as we have experts in Telecommunications , and Technology we need experts who understand a whole industry the way it operates, how it responds to commercial and global changes within their category.
Consideration: What innovations are at the precipice and what opportunities can be derived in understanding all facets of these sectors?
What Lies Ahead for 2025?
Looking forward to 2025, we see a combination of technology adaptation, workforce flexibility, and strategic insight as essential drivers in procurement. The ongoing transformation of procurement through AI will reshape how we work, encouraging the enhancement of our digital skills while maintaining crucial in-person relationships. Generational shifts will also influence the makeup of procurement teams, necessitating a focus on attracting and retaining talent across all age groups. Additionally, a continued emphasis on value creation, risk management, and ESG priorities will set the strategic priorities for the field.
The future of procurement is full of opportunities to innovate, adapt, and lead. We look forward to continuing this journey with all of you in 2025 and beyond.