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Integration with Sustainability Goals : CFOs began to value procurement’s contributions to corporate social responsibility (CSR) , particularly in sourcing ethically and supporting sustainability initiatives. CFOs began to see procurement as critical to business continuity and organizational agility.
In a world where geopolitical uncertainty is becoming commonplace, and retailers must stay resilient, leaders would be wise to apply a lesson from the past: make visibility an absolute priority. When Covid-19 first hit five years ago, retailers experienced the need for supplychainresilience.
The past few years have been a boon for procurement, which has become increasingly strategic and critical to business. The pandemic has accelerated this trend, with the Procurement function front and center in the fight to ensure supplychainresilience and continuity, reduce costs and protect the bottom line.
This resilience can be defined as “ the ability of a central procurement and supply management function to prepare for unexpected events, respond to disruptions, recover, and emerge even stronger. ” Manufacturers cannot foresee every risk, inconvenience, or disaster, but they can equip themselves to handle the unexpected and come out on top.
What we learned about agility and resilience can be applied to future-proof the source-to-pay (S2P) process and help organizations meet any new challenge with confidence. Nurture Supplier Relationships to Support Agility and Resilience. Through digital transformation, Meritor not only achieved its goals, but brought $1.8
Market Challenges Market volatility and inflation Inflation and market volatility negatively impact procurementteams. Inflation creates budget pressure, meaning teams must deliver more with less. Furthermore, inflation often leads to fluctuating prices and unstable supply and demand dynamics, making procurement more complex.
Enhances competitiveness through world-class procurement capabilities and practices. Allows focus on core competencies by outsourcing non-core procurement activities. Enables adherence to policies and regulations through ethical, sustainable, and compliant practices. This enhances the strategic value procurement can provide.
Here are the top 3 concerns likely to dominate the agenda for CPOs in 2025: SupplyChainResilience and Risk Management Sustainability and ESG Compliance SupplyChain Visibility Conclusion: CPOs in 2025 will need to navigate a complex, fast-changing landscape shaped by technology, sustainability, and global uncertainty.
KPIs in procurement are a set of quantifiable measurements that demonstrate how effectively an organization is achieving its operational and strategic goals in procurement. They act as a navigational tool, guiding the procurementteam towards the achievement of their strategic objectives.
Market volatility, globalization, and changing customer expectations have made procurement more complex than ever before. Organizations are now expected to not only manage cost but also to ensure supplychainresilience, mitigate risks, and contribute to strategic objectives.
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