Companies across the globe are grappling with economic uncertainty, continued supply chain disruptions and in many cases, sharp top-line declines.
These converging factors are compounding pressure on companies to dramatically improve their value chain is resilience to better respond to future disruptions so they can boost revenue while eliminating cost that doesn’t deliver value.
As the gatekeepers of a company is third-party relationships, procurement organizations are in a unique position to influence a wide range of value levers, while helping the company grow and improve resilience and responsibility. Consider, for instance, a company is multi-tier supply base, which influences a supply chain’s ability to follow shifts in demand and react to disruptions. The supply base is also key to corporate responsibility. A company may succeed in containing CO2 emissions or ensuring inclusion and diversity, but what about its suppliers? Procurement can use its position of influence to ensure responsibility and sustainability across the supply base.
But as its scope expands, procurement still needs to excel in its primary role: managing spend. And as many companies have discovered, effective spend management can’t be done solely through traditional cost-cutting measures, which often overlook opportunities and rarely generate sustainable, long-term savings.