EDITOR’S NOTE: Here is the link to James Meads’ LinkedIn post regarding my prediction that 75% of all logos on ProcureTech solution maps will be gone by the end of 2025. It is worth noting that Dr. Elouise Epstein has announced the end of her Solution Provider Spider Map.
This is great, James Meads!
To start, check out this survey result – https://bit.ly/4hrJTH1
By no means is it a comprehensive, industry-wide survey (perhaps you should do a similar survey), but the following results are interesting:
What percentage of ProcureTech solution providers will no longer be in business at the end of 2025?
➡️ 38% said up to 25%
➡️ 44% said between 26 and 50%
➡️ 13% said between 51 and 75%
➡️ 5% said “other”
There are some notable parallels between what is happening in the market today and during the dot-com bust in 2000. In the dot-com bust, “nearly 50% of startups survived at least five years post-bubble.” However, “Overall, the period was marked by a substantial contraction in the number of dot-com companies.”
So maybe the questions we should be asking are as follows:
↘️ How did the dotcom bust hurt the procurement industry?
↗️ How did the dotcom bust benefit the procurement industry?
Maybe even drill down a little further and ask:
↘️ How did the dotcom bust hurt procurement professionals?
The dot-com bust of the early 2000s had several adverse effects on procurement professionals:
1. Job Losses and Career Instability: The collapse of numerous internet-based companies led to widespread layoffs, affecting various sectors, including procurement. Many procurement professionals faced job losses or were compelled to transition to different industries, resulting in career instability. fastercapital.com
2. Budget Constraints and Resource Limitations: In the aftermath of the bust, organizations implemented stringent budget cuts to mitigate financial losses. Procurement departments often experienced reduced budgets, limiting their ability to invest in new technologies, training, or strategic initiatives.
3. Erosion of Supplier Relationships: The financial instability of the period led to the collapse of many suppliers. Procurement professionals had to navigate the challenges of disrupted supply chains, renegotiating contracts, and establishing relationships with new or alternative suppliers.
4. Increased Workload and Pressure: With reduced teams and resources, remaining procurement professionals often faced increased workloads. The pressure to maintain operational efficiency amidst economic downturns added to job stress and burnout.
5. Shift in Industry Dynamics: The bust led to a reevaluation of business models and strategies across industries. Procurement professionals had to adapt to new market conditions, including changes in supplier landscapes and the emergence of new technologies, requiring continuous learning and flexibility.
In summary, the dot-com bust posed significant challenges for procurement professionals, including job insecurity, budgetary constraints, disrupted supplier relationships, increased workloads, and the need to adapt to evolving industry dynamics.
↗️ How did the dotcom bust benefit procurement professionals?
The dot-com bust of the early 2000s, while challenging, also led to several benefits for procurement professionals:
1. Emphasis on Sustainable Business Practices: The collapse of many internet-based companies highlighted the importance of viable business models. This shift encouraged procurement professionals to prioritize partnerships with financially stable suppliers, leading to more reliable and long-term collaborations.
2. Technological Advancements: The downturn prompted a reevaluation of technology’s role in business operations. For procurement, this meant adopting more robust and scalable solutions, enhancing processes, and improving integration across supply chains.
3. Focus on Value Creation: With tighter budgets and increased scrutiny, procurement professionals became more strategic, focusing on cost-effective sourcing and value creation. This approach led to more efficient procurement processes and better resource allocation.
4. Market Correction and Talent Retention: The bust led to a correction in the job market, filtering out less qualified individuals. This allowed skilled procurement professionals to stand out and secure positions that matched their expertise, contributing to a more competent workforce.
In summary, the dot-com bust prompted procurement professionals to adopt more strategic, value-driven approaches, leading to improved practices and a more resilient industry.
Today’s Takeaway
Whether the number is 25%, 50%, or 75%, the real question(s) is what impact it will have on procurement as an industry and procurement professionals.
30
Procurement Insights
A follow-up post by James Meads on my 75% prediction is worth a read (and comment)
Posted on February 3, 2025
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EDITOR’S NOTE: Here is the link to James Meads’ LinkedIn post regarding my prediction that 75% of all logos on ProcureTech solution maps will be gone by the end of 2025. It is worth noting that Dr. Elouise Epstein has announced the end of her Solution Provider Spider Map.
This is great, James Meads!
To start, check out this survey result – https://bit.ly/4hrJTH1
By no means is it a comprehensive, industry-wide survey (perhaps you should do a similar survey), but the following results are interesting:
What percentage of ProcureTech solution providers will no longer be in business at the end of 2025?
➡️ 38% said up to 25%
➡️ 44% said between 26 and 50%
➡️ 13% said between 51 and 75%
➡️ 5% said “other”
There are some notable parallels between what is happening in the market today and during the dot-com bust in 2000. In the dot-com bust, “nearly 50% of startups survived at least five years post-bubble.” However, “Overall, the period was marked by a substantial contraction in the number of dot-com companies.”
So maybe the questions we should be asking are as follows:
↘️ How did the dotcom bust hurt the procurement industry?
↗️ How did the dotcom bust benefit the procurement industry?
Maybe even drill down a little further and ask:
↘️ How did the dotcom bust hurt procurement professionals?
The dot-com bust of the early 2000s had several adverse effects on procurement professionals:
1. Job Losses and Career Instability: The collapse of numerous internet-based companies led to widespread layoffs, affecting various sectors, including procurement. Many procurement professionals faced job losses or were compelled to transition to different industries, resulting in career instability. fastercapital.com
2. Budget Constraints and Resource Limitations: In the aftermath of the bust, organizations implemented stringent budget cuts to mitigate financial losses. Procurement departments often experienced reduced budgets, limiting their ability to invest in new technologies, training, or strategic initiatives.
3. Erosion of Supplier Relationships: The financial instability of the period led to the collapse of many suppliers. Procurement professionals had to navigate the challenges of disrupted supply chains, renegotiating contracts, and establishing relationships with new or alternative suppliers.
4. Increased Workload and Pressure: With reduced teams and resources, remaining procurement professionals often faced increased workloads. The pressure to maintain operational efficiency amidst economic downturns added to job stress and burnout.
5. Shift in Industry Dynamics: The bust led to a reevaluation of business models and strategies across industries. Procurement professionals had to adapt to new market conditions, including changes in supplier landscapes and the emergence of new technologies, requiring continuous learning and flexibility.
In summary, the dot-com bust posed significant challenges for procurement professionals, including job insecurity, budgetary constraints, disrupted supplier relationships, increased workloads, and the need to adapt to evolving industry dynamics.
↗️ How did the dotcom bust benefit procurement professionals?
The dot-com bust of the early 2000s, while challenging, also led to several benefits for procurement professionals:
1. Emphasis on Sustainable Business Practices: The collapse of many internet-based companies highlighted the importance of viable business models. This shift encouraged procurement professionals to prioritize partnerships with financially stable suppliers, leading to more reliable and long-term collaborations.
2. Technological Advancements: The downturn prompted a reevaluation of technology’s role in business operations. For procurement, this meant adopting more robust and scalable solutions, enhancing processes, and improving integration across supply chains.
3. Focus on Value Creation: With tighter budgets and increased scrutiny, procurement professionals became more strategic, focusing on cost-effective sourcing and value creation. This approach led to more efficient procurement processes and better resource allocation.
4. Market Correction and Talent Retention: The bust led to a correction in the job market, filtering out less qualified individuals. This allowed skilled procurement professionals to stand out and secure positions that matched their expertise, contributing to a more competent workforce.
In summary, the dot-com bust prompted procurement professionals to adopt more strategic, value-driven approaches, leading to improved practices and a more resilient industry.
Today’s Takeaway
Whether the number is 25%, 50%, or 75%, the real question(s) is what impact it will have on procurement as an industry and procurement professionals.
30
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