The coronavirus outbreak is having a profound impact on every business’ supply chain. The U.S. manufacturing PMI indicated the worst contraction in production, new orders, and employment since the 2008 recession. Nearly 75% of companies report supply chain disruptions in March, a number most expect to rise further.
The business case is signed off and the technical back-end work is complete. Now all that’s left is to implement your shiny new procurement system.
How hard could it be? Quite hard, actually. In fact, if the take-up of your new system doesn’t go well, the whole project could fail.
But don’t worry. That won’t happen to you with these top tips to guide you through the change management process.
The primary goal of a procurement function to achieve savings carries greater significance in a recession when obtaining the lowest cost possible needs to be balanced with not compromising the quality of products and services delivered by suppliers. A secondary goal could be supporting major technology transformation projects. These goals are made more difficult when economic disaster strikes.
Today, about 80% of large organizations are using artificial intelligence in their core business – compared to about 10% just five years ago. Companies that focus on AI are harnessing opportunities from vast data availability, machine learning and complementary technologies such as cloud, Internet of Things (IoT) and 3-D printing. And they are doing so with a focus on short-term benefits as well as long-term growth. According to Harvard Business Review, if you miss out, the opportunity cost could be as much as 41% of revenue by 2023.
We know that procurement is often a juggling act! We use decent supplier relationships, purchasing power, and any other tools in our belt to secure best payment terms, highest quality purchases at the lowest price, or indeed best value, to ensure vital continuity of supply against a backdrop of supply chains becoming ever more complex and volatile!
Compliance is a critical purchasing success factor. Aside from the tremendous amount of financial impact, compliance has other positive outcomes. When employees comply with purchasing through designated supplier programs, it significantly streamlines the supply chain, allowing your organization to be agile and flexible.
In this two-part blog series, we’ll take a look at how to better position organizations in order to improve business continuity and resilience. Part 1 looks at the current state of collaboration between procurement and finance, and what these two teams can start doing to improve workflow, efficiency and bottom-line impact.
Growing a recognizable brand while remaining cost-efficient are two key imperatives for businesses as they continue to transform their organizations digitally. Procuring software through digital channels and online solutions is increasingly popular as a way to keep pace with these initiatives.
Procurement is famous for our terminology – it is perhaps the one area where we’ve mastered the fine art of marketing. The labels "direct" and "indirect" spend are a perfect example. Direct spend materials are eventually sold to the customer, and therefore they are essential. Very important. The management of direct spend determines the size and health of the corporate top line. As a result, procurement may or may not have access to manage direct spend categories.
A new year and a new decade brings about the end and the beginning of many things. Hopefully the new decade brings an end to the angry woman and cat meme as well as the retirement of the man bun (sorry, it’s not my style). All kidding aside, the new decade brings hope, a chance to renew, a time to reflect and an opportunity to leave the past in the past.
To understand long-term transformations in supply chain and procurement technology, supply chain professionals must be able to understand present trends so they can help shape future realities. Experts believe the following predictions are viable hypotheses that we should consider for 2030.
Today, more than ever, filling the top of the funnel is proving to be extremely difficult. Speak with any salesperson and you’re likely to hear just how hard selling has become. And while yes, this is true, it’s nothing compared to being the person on the other end – you guessed it, I’m talking about the buyer.
Advancements in new technologies always assure to crop up with proficiency gains, high throughput and lower costs. When it comes to such advancements, the job for procurement is to have a clear understanding about how they function, what they are and what exactly they will make over for the greater cause of the business.
It is becoming increasingly difficult to determine the size and capabilities in the marketplace to understand where to source products and services for your stakeholders.