Procurement teams must take steps to ensure compliance and efficiency in their supply chains following political change, pandemic slowdowns, and demand to follow new ESG rules. Here are ten places where businesses should concentrate their efforts.
10. AMP UP AGILITY
Companies must be prepared to track and react to undesired events as quickly as feasible, given rising transcontinental delays and unexpected supplier outages. Reorganizing organizational activities to streamline disaster response, enacting new code-red policies, and training personnel in best practices for quick recovery are all possible strategies.
9. SHOOT FOR CORPORATE SUSTAINABILITY
When choosing a procurement team, investors and customers now consider ESG objectives. Companies can start by identifying important environmental priorities that correspond with their business objectives and developing effective KPIs with the help of consultants or internal management. Ensuring environmental, social, and governmental security will prevent supply chain disruption in the long run.
8. ADOPT MODERNISED PROCUREMENT TOOLS
Virtual chatbots and AI computing assistants are expected to increase 11% in 2021, according to experts. These technologies can also benefit from data-driven insights when utilized to strengthen procurement interactions with clients. Delegate human personnel to the most critical, cognitively demanding issues, and consider using AI and automation to handle any lower-level jobs.
7. AUGMENT ANALYTICS AND REPORTING
Data visualization and sophisticated modeling tools are expected to expand by 26 percent and 25 percent, respectively, in 2021. However, enhancing analytics requires a two-pronged approach: first, organizations must acquire trustworthy external and internal data, and second, they must hire and educate individuals who specialize at critical analysis. Bias reduction, complex systems thinking, and strategic management should be skillsets for every employee monitoring and making data-based choices.
6. SUPERCHARGE SPEND INFLUENCE
Companies that wish to differentiate themselves from the competition focus on bringing unique perspectives to the table. Rather to just following shipment orders, this ability entails thoroughly evaluating a company’s needs and objectives. Companies may offer greater value per pound invested if they understand and prioritize the organization’s goals in their procurement strategies.
5. ACT AS STRATEGIC ADVISORS
Companies can create complex connections with the companies they service instead of persistently refusing to move outside the procurement box. Early engagement in the shipping process, after all, can help to avoid misunderstandings. Procurement leaders frequently have excellent intuition based on years of expertise. As a result, informing business partners about potential dangers or possibilities can enhance your involvement in the operation—and establish the groundwork for future collaboration.
4. MATCH SKILLS WITH NEEDS
Despite growing digitalization, most supply chain activities still rely on physical labor. Companies may guarantee a seamless transition by training all workers on the new features and procedures when they improve their technology. Even if implementation is months away, proactive worker training, support, and mentoring may help a business succeed in the future.
3. MITIGATE SUPPLY CHAIN RISKS
Even the most advanced intelligence, as 2020 shown, cannot anticipate every impending calamity. However, efficient procurement necessitates the ability to reassure clients about the security of a cargo. Partnering with third-party businesses to analyze and control problems before they emerge is one of the greatest methods to approach risk management. Predictive analytics may also help your organization prepare for upcoming occurrences.
2. DIGITISE PROCUREMENT PLATFORMS
Employees can react to fast variations in demand with the aid of warehouse management systems (WMS) and other digitalization platforms. Furthermore, WMS and its equivalents might help to move procurement to more agile processes. Cloud-based apps can store and sift massive volumes of relevant data as online purchases grow and client behaviors change. Cloud-based system usage is anticipated to increase by 29% in 2021 alone.
1. CUT SPEND COSTS
Companies can negotiate shipping costs based on current market data to maximize savings. Procurement teams can now examine and compare freight costs, as well as predict delays, drive better deals, and discover new sourcing partners, thanks to the growth of openness and data gathering. Companies should search for a new vendor if their existing one is raising prices or refuses to bargain.