Procurement teams need to look at immediate, short- and long-term strategies for adjusting to the new normal created by the pandemic, war in Ukraine and other recent events, according to this McKinsey analysis. "As procurement demonstrates its value to the enterprise, the stage will be set for procurement leaders to become full-fledged strategic partners to CEOs, CFOs, and COOs," the authors write.

Artificial intelligence offers plenty of benefits in procurement, from cost savings to worker safety, but savvy companies should be aware of the ways AI can go wrong before diving in, procurement professional Euan Granger writes. "Taking measures to engage proactively with an AI system and anticipating such problems may assist procurement professionals to reap various rewards," Granger writes.

Building and maintaining strong relationships with suppliers and getting real-time data on supplier risk can strengthen procurement teams, writes Omer Abdullah, co-founder of The Smart Cube. Creating more time to monitor global commodity trends will help predict future risks as well, Abdullah notes.

Pandemic lockdowns in China are affecting suppliers, extending transportation delays and reducing factory output, with some companies rerouting orders to other countries for manufacturing and processing. "What starts as temporary can become entrenched, as behavior adapts if what starts that way goes far enough and lasts long enough," says Agustín Carstens, head of the Bank for International Settlements.

Automating inventory management can help companies cope with the ongoing truck driver shortage, while repurposing existing space for e-commerce fulfillment can help mitigate the limited availability of warehouse space, writes Callum Campbell, CEO of Linnworks. Campbell also suggests ways to handle increasing consumer demand this year.

Companies with connections to Germany can prepare for the country's upcoming Supply Chain Due Diligence Act by creating compliance procedures, publishing a human rights policy statement and developing a comprehensive risk management system. The act addresses human and environmental rights and is set to take effect in several months, and the European Union is considering a similar rule that would apply to businesses with at least 500 employees.

As-a-service models are rapidly supplanting physical infrastructure hardware at federal agencies, and sustainability and climate change are becoming a much larger part of government contracts, Laura Stanton of the General Services Administration said during a recent summit. The US government has a Sustainable Facilities tool with guidance for procurement professionals, and the GSA Advantage catalog can be helpful for eco-friendly product searches.

Procurement departments that incorporate ESG practices needn't take a hit to their bottom line as a result, writes Alison Pepper of the American Association of Advertising Agencies. Pepper explains how sustainable slants on packaging, energy and meetings can actually improve companies' bottom lines.

Procurement is often forced to manage conflicting objectives and make important choices under pressure, while always being cautious to balance risk. In this webinar, we'll discuss the evolution of procurement and how to take your team from revenue savers to revenue generators. Plus, you'll learn how to use rebates as a revenue source to drive top line growth and gain a holistic view of all your deals and negotiations. Register to attend live or receive the on-demand recording.

Procurement teams were some of the many heroes of the COVID-19 pandemic, ensuring business continuity, managing multiple disruptions and forming vital partnerships with suppliers. We want to hear your success stories at the Future of Sourcing Awards! Submit a nomination to recognize yourself, your team or someone you admire. There are multiple categories, and nominations are open for both SIG members and non-members. Learn more and submit a nomination.