Holger Dermann, eBusiness & Services Project Manager at the Hoffmann Group, explains his forecast for 2024 in a short technical article. Important topics such as a shortage of skilled workers, supply chain legislation and digitalization will continue to challenge companies in the coming years. This must be counteracted at an early stage.
Digital solutions to the shortage of skilled workers
The shortage of skilled workers is affecting all company departments and remains one of the biggest operational challenges, including for purchasing. Companies are struggling with a smaller pool of applicants and must also compensate for more frequent personnel changes. There is great potential here in e-procurement platforms, which relieve personnel through digital and automated processes. This makes it easy to redistribute tied resources so that employees can use their time for strategic tasks. Overall, digital media are essential to integrate new personnel into operational processes as quickly as possible. Digitalization is a decisive factor in being an attractive employer for the young generation.
It is unthinkable that trainees with a digital leisure life in the company would still fill out slips of paper — not to mention the creation of paper-based catalogues.
Holger Dermann
eBusiness & Services Project Manager, Hoffmann Group
Productivity increase in response to margin pressure
Every company must optimize costs. This makes price negotiations more demanding. They are also made more difficult by rising raw material prices. This is causing high margin pressure, which will continue in 2024. Companies must therefore get the most out of their margins. This can only be achieved through process optimization through automation and the resulting increase in productivity. In the purchasing department, this could be the introduction of an e-procurement platform. As long as the ordering process takes place on paper and the product and price overviews are carried out in catalog rolls that are difficult to update, too many employees are trapped in processes that are too time-consuming and therefore costly. And in the end, excessive process costs melt every possible margin.
Realizing rapid savings potential through digitization
Companies must bring transparency to their purchasing processes and the flow of goods, especially in the area of C-parts, in order to identify optimal savings potential here. Maverick buying is one of the biggest enemies of strategically optimized purchasing behavior, because employees uncontrollably order materials past the purchase. This conceals actual demand and strategies for savings potential are made almost impossible. Companies must show clear paths, for example via digital tools that steer purchasing behavior within departments along predefined paths. In e-procurement systems, clear price lists ensure that materials are always purchased with the best price-performance ratio.
Conclusion: Overcoming challenges with smart technologies
Regardless of whether there is a shortage of skilled workers, cost reductions or margin pressure, the Procurement management There are some major challenges ahead of us this year. But these don't have to be a bogeyman, because they can be achieved with the help of smart technologies such as E-procurement platforms, solve process optimization and digitization of purchasing processes quickly and cost-effectively.
About Hoffmann Group
With their efforts, more than 4,000 highly motivated people make the Hoffmann Group what it is today: Europe's leading partner for quality tools, which supplies everything you need within a 10-meter radius of an industrial workplace: tools, workshop supplies, personal protective equipment, factory equipment, goods delivery systems, digital products and manufacturing solutions, as well as loading systems for machine tools. Over 120,000 items from over 500 top brands, including GARANT and HOLEX, are available from stock. In addition, 500,000 articles are listed. The offer is supported by comprehensive consulting and customer service as well as various services. More than 135,000 companies in 50 countries rely on this powerful offering, which comes to customers with TÜV-certified delivery quality. The headquarters of Hoffmann Group is located in Munich.
