The pandemic has forced businesses to update their procurement processes to meet challenges and create value, writes The Smart Cube's Omer Abdullah. Procurement's new roles include proactive risk mitigator, strategic innovation driver and action-oriented solution, Abdullah writes.
Procurement can play a vital role in sustainability and reduce the carbon footprint of businesses if designed effectively, writes Sourcing Industry Group CEO Dawn Tiura. "Sustainable procurement is no longer a corporate goal, but a global one; and while creating carbon transparency is a challenge, it's a crucial step towards saving the planet and people that business serves," Tiura writes.
B2B companies increasingly want advanced digital tools to promote efficient procurement processes and reduce operational costs, writes Todd Heimes, director of Amazon Business Worldwide. "Features like analytics tools, spend visibility, guided buying, multi-user accounts, and spending limits have been elevated from nice-to-have to must-have," Heimes writes.
Volatility in the prices of raw materials makes it necessary for pricing and procurement teams at industrial companies to work together on price adjustments, according to this McKinsey analysis. To capture the full potential of price improvements, companies should set the appropriate price, create discount and rebate guidelines, and identify and fix sources of margin leakage.
Logistics and supply chain challenges will likely continue into next year, according to Logitech International CEO Bracken Darrell, who anticipates having difficulty meeting demand despite high inventory levels. Logitech has added new suppliers to help alleviate the semiconductor shortage, Darrell said.
One critical source of cyberrisk is a false sense of security, so building awareness about vulnerabilities is key, says Steve Prymas, chief insurance officer at Embroker. The process "starts with dedicated leadership and staff, and of course ensuring that IT infrastructure is protected with the right cybersecurity tools," Prymas says.
Regulatory compliance and cybersecurity can no longer be considered separate issues, writes Maciej Dziergwa, CEO of STX Next. "Neither can truly succeed without the other, and emphasis should be placed on balancing resources so that both areas are covered," Dziergwa notes.
Nestle does not anticipate inflation interfering with its goal of achieving carbon neutrality by 2050, as its pricing and centralized procurement strategies are helping to preserve the margins necessary to support this work, according to Francois-Xavier Roger, chief financial officer. "In addition, we are using other levers such as product mix, disciplined cost management and the further rollout of strategic revenue management tools," said Roger.
SIG is hosting a free one-day event for buy-side practitioners. The day will include an executive roundtable discussion, a networking lunch and a discussion with Linda Tuck Chapman, a leading expert in third-party risk management, followed by roundtable discussions and presentations from TD Bank and Ivalua and ending with a networking happy hour and provider showcase. Space is limited, so register early to join us in Toronto.
How do you take the lessons learned from dealing with sourcing and supply chain disruptions in the past year and apply them to make adjustments for the future? Join experts including Coupa CPO Michael Van Kuelen to hear procurement leaders discuss realigning to pivot with disruption, optimizations for meeting ESG goals, processes to implement in 2022, leadership challenges and addressing burnout in a tight talent market. Register to join us live or receive the on-demand recording.