Mega Trends in the Business World; Trends Affecting Purchasing and Supply

QUESTION

Based on your experience or readings, discuss how the mega trends in Business, Information Technology (IT), Human Resources (HR), and Management/Leadership affect the Purchasing and Supply Management professional in the exercise of his/her duties and responsibilities – in particular globalization, e-commerce/e-procurement, professional development/training, and cross-functional teaming and project (matrix) management. How do these trends impact on the organizational and operational aspects of the Purchasing and Supply Management Department? What are the skill sets that Purchasing and Supply Management professionals should exhibit to better prepare them for the business, IT, HR, and management/leaderships challenges facing them in the twenty-first century? NOTE: Your response should include comments and/or observations relative to each of the items associated with this week’s discussion topic. You can divide your response into paragraphs – one each for each item.

ANSWER

Mega Trends in the Business World

Trends Affecting Purchasing and Supply

From time to time, businesses are faced with various sustained and economic forces of development. These forces impact businesses, the economy, cultures, society, and even people’s personal lives, hence influencing the future and the rate at which the world changes. Many of these emerging megatrends affect the organizational and operational aspects of the Purchasing and Supply Management departments in every business. Technological developments have led to the escalation of globalization, resulting in communication, transport, and travel to any part of the world becoming extremely fast and easy. This has led to the formation of global markets, as individuals want what they have seen, from any point in the world (Levitt, 1993). Purchasing and supply departments have therefore gained access to a broader market for acquiring goods and raw materials.

E-commerce, the trading of goods and services via the internet, is another megatrend in business. E-commerce has dramatically affected the operations of firms, generally, and the purchasing and procurement of services, human resources, and even goods. The ease at which purchasing can be done today has primarily led to a decrease in purchasing costs and time spent in acquiring of goods (Andam, 2014). Technological advancement has led to ease of professional training and project management. Businesses have access to professionals via online media and job sites. Procurement and human resource departments have a wide range to select from when it comes to new employees, new suppliers, and contractors.

Purchasing and supply personnel ought to be very well prepared for these and many more trends in the business world, and the challenges that come with them. Problems such as individuals posting untrue information online and costs related to transportation of goods overseas should be adequately accounted for and controlled, to avoid business losses. Organizational readiness is attributed to success when dealing with any emerging trends. Experienced and qualified individuals should be hired to filter and control any E-commerce or E-procurement activities (Grandon, Pearson, 2004).

References

Levitt, T. (1993). The globalization of markets. Readings in international business: a decision approach, 249.

Andam, Z. R. (2014). e-Commerce and e-Business.

Grandon, E. E., & Pearson, J. M. (2004). Electronic commerce adoption: an empirical study   of small and medium US businesses. Information & management, 42(1), 197-216.