The new year is quickly approaching, and businesses across the globe are finalizing their 2015 plans if they haven’t done so already. From new technologies to better processes and collaboration, there are already whispers of the trends we are going to see next year. Here are some of our predictions for procurement and sourcing in 2015.
Manufacturing – Nearshoring & Reshoring
Many companies are relocating their manufacturing operations to Latin America, particularly Mexico, due to the many benefits nearshoring offers. With competitive labor rates as compared to other low cost countries, closer location to US, and favorable trade agreements, it is clear to see why organizations are considering this a viable option.
Some companies have even began to move back to the US after years of outsourcing overseas, though the reshoring trend is not as prevalent as nearshoring. In fact, Bill Conerly for Forbes stated, “Reshoring will continue, but not across the board. The greatest reshoring will occur in industries that benefit most from cheap natural gas and have access to global markets.” 
Supplier Relationship Management in Highly Regulated Industry
Supplier relationship management (SRM) is becoming a more widely accepted best practice across global organizations, but still lacks popularity due to unclear program definitions and/or lack of internal buy-in. However, in highly regulated industries, such as pharma and banking, SRM is an ideal solution for managing supplier risk as well as cultivating value from the supply base after the contract has been signed. SRM provides a controlled framework to manage suppliers who handle proprietary information or work directly with customers. Check out our next article to learn a little more about SRM.
Pre-merger Due Diligence Through Clean Room Services
Intelligent clean room services are not a new concept, but companies going through a merger are looking more and more to improve synergies within their supply base. Pre-merge due diligence within the sourcing and procurement space can help optimize supplier contracts and spend categories, as well as provide a roadmap to transition and consolidate supplier agreements.
Conerly, Bill. Forbes, September 2014. Reshoring Or Offshoring: U.S. Manufacturing Forecast 2015-2016.