Procurement plays a pivotal role in shaping the future of leisure by ensuring that their business is swift, flexible and adaptable to changing consumer needs. As 2023 ends and we step into 2024, there are several procurement trends that are poised to transform the leisure industry. Within this blog we’ll explore the top trends that will define the future of leisure.
Sustainable Sourcing
In a world increasingly focused on sustainability, procurement for the leisure industry is no different. Sustainable sourcing is more than just a buzzword, it’s a commitment to minimising environmental impact. In 2024, expect to see a surge in leisure businesses prioritising eco-friendly products and practices. Hotels, gyms and other leisure organisations will increasingly prioritise suppliers that offer eco-friendly alternative products and share their same ambitions to make a positive impact on our planet and society.
Digital Procurement Solutions
The digital revolution continues to reshape procurement processes across all industries, including leisure. In 2024, the adoption of digital procurement solutions will reach new heights. Automation, e-procurement platforms, and AI-powered tools will streamline purchasing, reduce costs, and enhance supplier relationships. Real-time data access will enable quicker decision-making and improved inventory management, ensuring that leisure businesses remain competitive.
Data-Driven Procurement
Data is the new gold with a recent study revealing that 97% of senior executives believe that a procurement process that is data-driven is ‘vital to achieving long-term value, cost reductions, and efficiency gains’. Today’s procurement professionals must effectively manage data to deliver valuable and actionable insights to drive business growth and profitability. In the future of leisure, data-driven procurement will enable organisations to make informed decisions. Predictive analytics will help identify trends in consumer preferences, allowing businesses to adjust their offerings and optimise inventory. Furthermore, data will be crucial for negotiating better deals with suppliers and monitoring compliance with ethical and sustainability standards.
Supply Chain Optimisation
A resilient supply chain is the backbone of the leisure industry. Procurement trends in 2024 will focus on enhancing supply chain efficiency and resilience. This includes reducing lead times, minimising transportation costs, and diversifying sourcing options. Advanced logistics and supply chain management software will be indispensable in achieving these goals, ensuring that leisure businesses can meet customer demands consistently.
Ethical Sourcing
Consumers are becoming more conscious of ethical practices, and this trend will continue to shape leisure procurement in 2024. Leisure companies will increasingly seek out suppliers who adhere to fair labour practices and ethical sourcing standards. Transparency in the supply chain will be paramount, allowing consumers to make choices aligned with their values. Ethical sourcing not only meets consumer expectations but also safeguards the reputation of leisure brands.
Efficiency and Cost Savings
Effective procurement strategies can drive significant cost savings without compromising the quality of goods or services. One such strategy is strategic sourcing, which aims to optimise supplier selection and negotiation to achieve cost reductions while ensuring supplier quality. In 2024, leisure businesses will intensify efforts to improve procurement efficiency. This includes consolidating suppliers, negotiating bulk deals, and reducing wastage. Efficiency gains will translate into cost savings, allowing companies to reinvest in enhancing guest experiences and staying competitive in the market.
Consolidation
Finally, consolidation will be a significant trend in leisure procurement. Smaller suppliers may merge or be acquired by larger players, leading to a more streamlined procurement landscape. This can result in improved negotiation power and greater standardisation of products and services, contributing to cost control and enhanced supply chain management.
Conclusion
The future of leisure lies in embracing these procurement trends. Sustainable sourcing, digital solutions, data-driven decision-making, efficient supply chains, ethical practices, cost savings, and consolidation will shape the leisure industry’s landscape in 2024. Leisure businesses that adapt and leverage these trends will not only meet customer expectations but also thrive in an increasingly competitive market. As we look ahead, it’s clear that procurement will play a pivotal role in delivering exceptional leisure experiences while contributing to a more sustainable and responsible industry.
About Office Depot
Office Depot is a leading provider of critical workplace supplies and services, with access to over 1M products from 10,000’s suppliers.
We currently work strategically with well-known brands in the leisure industry to consolidate their supply chain to decrease costs, increase visibility, control and compliance. Whilst in turn, reducing their scope 3 emissions.
Office Depot isn’t just a supplier; we work together with our customers to fully understand their needs. From this, we offer a tailored solution which fully meets their specific ‘back of house’ leisure requirements. Whether your procurement teams need more visibility and control over multi-site spend or your teams need easier procurement platforms to place orders or faster delivery of products – we’ve got you covered! So that you can focus on providing a better service to your customers.
Resources
https://www.localdatacompany.com/blog/the-gb-leisure-industry-2019-2022#Where%20Are%20We%20Now?
https://www.pairsoft.com/blog/how-to-become-a-data-driven-procurement-leader/
https://www.linkedin.com/pulse/strategies-reducing-procurement-costs-while.
