Procurement in the Spotlight: Driving Business Growth and Resilience in Uncertain Times
In a world marked by uncertainty and disruptions, procurement emerges as a secret weapon for CEOs. This article delves into a recent Forrester Consulting report commissioned by Ivalua, revealing how procurement is becoming a critical function for achieving growth and resilience.
In today’s complex and dynamic business environment, organizations face challenges that extend beyond conventional economic, monetary, and financial risks. They also grapple with mega threats such as inflation, recession, geopolitical risk, and supply chain disruptions, which can significantly impact their performance and survival. A recent Forrester Consulting report commissioned by Ivalua, titled “Procurement: A CEO’s Secret Weapon for Growth and Resilience in Turbulent Times,” explores how the procurement function can become more agile and help organizations adapt to market or business environment changes.
The report emphasizes the expanded mandate of procurement, which now entails value orchestration. It discusses the role of procurement in resolving disruptions for businesses and how supplier strategies have become more digitized and collaborative. The report also highlights the hindrances to procurement agility, such as a lack of leadership, data, and outdated systems.
The study found that improving procurement initiatives helps meet business objectives, allows procurement leaders to discover hidden gems and slash costs, increases operational resilience, and reduces overall business risk due to transparent communication. The report concludes with key recommendations for chief procurement officers (CPOs) and procurement teams to navigate their organizations in an uncertain environment.
Takeaways:
- “Redefine the procurement function so that it is fit for purpose. Invest in modern technology and train a new generation of strategic buyers.”
- “Take a holistic view of technology. Ensure that investments improve data quality and access, rather than creating further siloes.”
- “Ally with your firm’s suppliers to meet ESG imperatives. Adjust sourcing strategies for low-carbon business and work with suppliers to deliver ESG standards.”
- “Boost your organization’s supply chain resilience by adopting just-in-case thinking. Stabilize your firm’s supply chains at the first indication of a crisis and codevelop long-term strategies with your suppliers to make your company more resilient and future fit.”
We’d love to hear your thoughts on the evolving role of procurement in today’s business landscape. How do you see procurement driving growth and resilience in your organization? Share your insights and join the conversation in the comments section below.
Please read the full report here:
