COVID-19, war in Ukraine, inflation: In 2022, supply chains around the world were under huge pressure. Operational risks and disruptions threatened several areas of a supply chain and had a very direct, far-reaching and global impact: on logistics, suppliers and the workforce. Additional pressure on supply chains stems from everyday challenges -– unexpected competition, sudden changes in market trends or rapid shifts in consumer buying behaviour. So it is more important than ever that supply chains are designed to withstand the challenges of today – and tomorrow.
There is hardly any other occupational sector where more vacancies are currently being advertised than in the area of procurement. Digitalisation does not stop at procurement, but hardly any industry insiders assume that digital solutions will become a job destroyer. On the contrary: digitalisation will make the profession more diverse, more dynamic and more challenging. Salaries in strategic and operational purchasing are already over 45,000 euros a year for career starters, and with growing experience up to 90,000 euros are possible. Nevertheless, a dangerous trend is currently emerging. The supply chain is losing a disproportionately large number of qualified employees, especially at the lower levels. This article explains the reasons for the "talent exodus" and how companies can counteract it.
Incorporating more diversity into your supplier base can deliver considerable benefits for your organisation, including increased innovation and improved quality. Numerous studies have shown that diverse suppliers produce superior results and improve the top and bottom line. But while the advantages are clear, it’s not always obvious to companies how they can start sourcing from diverse suppliers, especially if their current supplier base lacks diversity. Undertaking the development of a more diverse supply chain may seem like a formidable task but, if the last few years have taught us anything, it’s that it’s time to move from words to actions in achieving your organisation’s diversity objectives.
The rise of Industry 4.0 has spawned a mini revolution of its own - Procurement 4.0. By harnessing the potential of cyber-physical systems, Procurement 4.0 is empowering Chief Procurement Officers and other supply chain professionals to leverage better data to their advantage. Enter Procurement 4.0.
Climate change is impacting every populated region in the world, and it seems likely that the effects of climate change are only going to worsen in the future. In 2021 alone, the United States suffered 20 separate billion-dollar weather events, and Australia has seen a 16% decrease in rainfall since 1970. In considering the havoc that wildfires, floods, and freezes are wreaking on supply chains around the globe, it’s quite clear that doing nothing is no longer an option. Today’s business leaders are under intense pressure to drive sustainable initiatives with a clear and direct focus on climate change. However, creating a more sustainable organisation requires a “whole of business” strategy and there’s a growing realisation that procurement has a vital, but often neglected, role to play.
Supply chain disruptions and bottlenecks have become an unpleasant fact of life for many businesses over the last few years. With no foreseeable end to these problems on the horizon, what can businesses do to ensure that their supply chains keep running efficiently? We take a look at some of the causes of supply chain bottlenecks and explore how businesses can implement technology to help navigate these unexpected disruptions
Maverick spending causes higher procurement and administrative costs, as well as a loss of control over spending and suppliers. In fact, it’s estimated that organisations lose on average 10-20% of their savings because of maverick spend. In addition, maverick spending makes achieving ESG goals harder and poses a major risk when it comes to legal standards. Here we look at what exactly maverick spending is, the reasons behind it, and how your organisation can tackle maverick spending through digital procurement.
A new report by Gartner - Shockproof Your Supply Chain for the New Age of Disruption - states that CPOs are so busy focusing on putting out fires in the short term that they are missing the opportunity to build resilient supply chains that can not only survive but thrive in this new age of disruption. Over the last two years, as one crisis has segued into the next, CPOs have had little time to recover from any of them and, as a result, many “are confusing risk mitigation with resilience.”
When used correctly, digital procurement platforms can serve as a “single source of truth” for both clients and suppliers. In this blog post, we take a look at what transparency in procurement means, potential obstacles encountered in achieving this transparency and, of course, how to overcome them.
“Digital transformation is the way forward in almost every segment of life.”