Insights for the Procurement Industry in 2023: Tradeshift's Perspective

Insights for the Procurement Industry in 2023: Tradeshift's Perspective

As we move into the new year, it’s important to consider the trends and insights that will shape the procurement solutions and services marketplace in 2023. Spend Matters has been collecting expert predictions and insights from tech and service providers for several years, and this year is no different. In this series, we highlight providers' observations from the year they’ve left behind and how they see these observations shaping the year ahead.

James Stirk, Senior Vice President of Global Sales and Marketing at Tradeshift, shares his insights on three key areas that will impact the procurement landscape in 2023.

Firstly, Stirk highlights an acute liquidity crunch that many supply chains are facing due to inflation and waning demand. Large organizations cannot fight macroeconomic headwinds and need to be proactive in protecting the financial integrity of their supply chains. Instead of passing liquidity pressure onto suppliers through extended payment terms, Stirk expects to see a big rise in demand for embedded finance services that can unlock liquidity from outstanding receivables and enable suppliers to manage their cash flow more predictably.

Secondly, Stirk predicts that B2B marketplaces will come of age in 2023. He notes that the marketplace model is becoming central to boardroom conversations around supply chain resilience and sustainability, thanks to the end-to-end visibility they provide. With more than 40% of consumer online purchases happening on marketplaces, procurement professionals see B2B marketplaces as a way to embed efficiency, convenience, and control at every stage of the buying process. Stirk expects to see a further acceleration of interest in B2B marketplaces in the year ahead, with sales doubling from the already impressive fivefold increase between 2020 and 2022.

Lastly, Stirk believes that digitalization will top the CFO agenda in 2023. A recent study of financial leaders showed that three-quarters of CFOs plan to increase spending on technology over the coming year, with process automation remaining a primary focus for organizations looking to offset rising labor costs through greater efficiency. While data and insight are the biggest prize on offer from digital transformation, employees will need the skills and training to extract the value and insight that new technologies provide to future-looking enterprises.

In conclusion, the procurement solutions and services marketplace will continue to evolve in 2023, with an acute liquidity crunch, the rise of B2B marketplaces, and a continued focus on digitalization and talent being top of mind for procurement professionals and financial leaders alike. As the year progresses, it will be interesting to see how these trends and insights shape the landscape and impact organizations of all sizes.