The last few years have created uncertainty and risk for supply chains. Businesses have navigated uncertainty from the COVID-19 pandemic and other global and regional events. Rather than a steady return to business, labor constraints, supply issues and a rapid increase in demand have compounded the pressures experienced early in the pandemic, impacting the availability of raw materials, labor and transportation. This unanticipated combination of outside forces, coupled with a rapid rebound in demand for products and services has created shortages across product categories. As the C-Suite develops strategies to address supply issues today, and in the future, procurement organizations can play an important role in helping manage risk and supply continuity.
Disruptions Will Likely Continue
Gartner recently published a report entitled, “Procurement’s Critical Role in Boosting Supply Chain Resilience” which offers recommendations to chief procurement officers that can help manage risk and drive a more resilient supply chain.
The report notes that CPOs expect these disruptions in the supply chain to continue for the foreseeable future, impacting operations globally. It will be important for the organization to invest in processes and technologies focused on bolstering the supply chain. The report offers specific recommendations for CPOs to address supplier risk
Focus on Supply Chain Resilience
The report highlights findings among sourcing and procurement leaders related to supply chain resiliency. Some of their findings include, “Eighty-seven percent of sourcing and procurement leaders believe their supply chains need to be more resilient over the next two years. 75% of sourcing and procurement leaders say they need to significantly change their supplier risk management process in the wake of COVID-19. Periodic, compliance-oriented approaches to supplier risk are not sufficient to ensure supply chain resilience. Organizations need to invest proactively in developing supply chain resilience and not rely solely on crisis management capabilities.”
Pro-Active View of Supply Risk
Lessons learned from the recent pandemic and product shortages will make supply chain resiliency a top priority for CEOs in the upcoming years. The procurement organization plays a key role building and fostering diverse supplier relationships.
The report offers recommendations for CPOs tasked with improving supply chain resilience. The specific steps include, “Improve upstream visibility by mapping their most critical supply chains at a multitier level. Target key vulnerabilities in their supply bases by identifying sources of risk exposure that could most negatively impact their businesses. Shape their supplier risk mitigation strategies by conducting stress tests for resilience and business continuity. Ensure preferential status for tight materials and capacity by collaborating with suppliers and assure supply and manage risk at an ecosystem level. Obtain earlier warning of supplier risks by investing in tools and technologies to monitor and anticipate potentially disruptive events.”
BuyerQuest and Supplier Collaboration
The BuyerQuest platform offers a user-centered shopping experience for both internal buyers and the diverse supplier community. This focus provides users with a variety of purchasing options while allowing procurement to balance demand and manage their supplier community. Through a simple user experience, better visibility, more control throughout the procurement process, and better business intelligence, the procurement organization can enforce spending compliance.
Through BuyerQuest’s supplier collaboration capabilities, suppliers can be engaged through multiple methods to gain value. With the ability to include a diverse supplier base through direct access to the supplier portal, suppliers can easily interact with the business, responding to and RFQs and RFPs, fulfilling orders and submitting all through a single interface. In addition, suppliers have the flexibility to manage their catalogs through an intuitive user interface, allowing them to leverage the platform and quickly update their catalogs with in-stock items.
With the BuyerQuest platform, procurement can establish a resilient supplier ecosystem to drive new savings and achieve continuity of supply, while better aligning procurement to broader corporate priorities.
Read the full Gartner report, “Procurement’s Critical Role in Boosting Supply Chain Resilience”
Learn more about BuyerQuest’s Supplier Collaboration Capabilities.
Gartner, “Procurement’s Critical Role in Boosting Supply Chain Resilience”, Koray Kose, 25 October 2021.
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