Global Sourcing and Procurement functions are taking on a new enhanced mission within business. The immediate impact of which is to dramatically broaden their focus and accountabilities.
This fast rate of adaption and development of new responsibilities and challenges creates a need for New Skillsets, Data and Inputs.
For many teams who sit outside Global organisations this requires the rapid building of a New Eco System of partners to support the rapid delivery of new responsibilities. Building both the structure and systems to manage data but also the insight and decision-making skills required for analysis and action planning.
What some of the pressing agenda points for Chief Procurement Officers and Global Sourcing teams?
How can they keep on top of these big challenges as they rapidly evolve?
- Supplier Risk Management: Organizations are becoming increasingly concerned about supplier risk, especially in the wake of supply chain disruptions caused by the COVID-19 pandemic. As a result, many companies are investing in supplier risk management tools and strategies to mitigate risk and ensure business continuity.
- Near-Shoring: The disruption caused by the COVID-19 pandemic has prompted many organizations to rethink their global supply chain strategies and consider localizing their supply chains. This trend to Near-Shoring is likely to continue as companies look to reduce supply chain risk and improve their shock resilience.
- Sustainability and Ethical Sourcing: Sustainability and ethical sourcing are becoming increasingly important to consumers, and as a result, organisations are placing a greater emphasis on sustainable and ethical sourcing practices. This includes
- Sourcing from suppliers that are environmentally and socially responsible.
- Measuring and managing the Carbon emissions in their wider Supply chains.
- Mapping wider Corporate Risks from within the entire Supply Chain.
- Digital Transformation: Digital transformation is driving significant changes in the global sourcing landscape, with organizations adopting new technologies such as artificial intelligence, machine learning, and robotic process automation to streamline processes, reduce costs, and improve efficiency.
- Supplier Diversity: Many organizations are recognizing the importance of supplier diversity, both from a social responsibility standpoint and to mitigate supplier risk. As a result, there is a growing emphasis on sourcing from diverse suppliers and supporting small and minority-owned businesses.
- Trade Policy: Trade policy continues to be a hot topic in global sourcing, with organizations closely monitoring changes in tariffs, trade agreements, and other trade policies that could impact their supply chain operations
- Reshoring: The COVID-19 pandemic has prompted some organizations to consider reshoring their manufacturing operations to reduce supply chain risk and improve agility. Whilst this trend has immediate and obvious appeal as companies look to build more resilient supply chains. It is proving extremely complex and challenging for many organisations.
These 7 topic areas are increasingly important for companies and brands of all sizes to understand and review as part of their Global Sourcing Strategy. For many already stretched teams the need for skilled Partners to support their delivery of answer to these questions is crucial.