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From Vision to Reality: Procurement and Supply Chain Strategies for Desired Business Outcomes

Autonomous Commerce | Supplier Management | Supplier Network | Supply Chain Management

The global supply chain is currently encountering its most difficult phase after the pandemic, requiring companies to enhance their network’s resilience, transparency, and flexibility. This will enable them to cope with the changing business environment, manage emerging external factors, ensure continuous supply, and reduce supply chain disruptions while also minimizing or eliminating associated internal and external risks.

The greatest challenge companies have today is having to make their supply chains more resilient without losing competitiveness. Amid the current situation where numerous new challenges have emerged, it is crucial for organizations to gain control over their supply chain and procurement processes and adopt the best practices. Strategic procurement plays a critical role in managing both present and future challenges faced by businesses.

Let us explore the major and sought-after business objectives that procurement practitioners aim to accomplish:

Procurement agility & supply chain resiliency
The last few years have shown how fragile our operating models were. Single sources, geographic concentration, and long logistic routes are very error prone. Supporting organizations to become more flexible, and therefore also more resilient, is one of the main priorities for many companies.

Facilitate and improve supplier collaboration
It is not uncommon that most of the value of a company comes through suppliers. For example, for automotive, this is more than 80% usually. This puts procurement in a unique position to drive value for the company. The earlier in the new product introduction process procurement is involved, the higher the yield. Especially at this stage, close collaboration between many stakeholders on the buyer-side and different suppliers is key. This is also true for the execution stage. In times where supply is lower than demand, ensuring supply continuity by keeping a close watch on supply chain execution becomes an important task.

Accelerate digital transformation
Today, it is widely acknowledged by businesses that they cannot avoid the digitalization of their processes. You need all these different data points to make the right decisions and maybe even transform one’s own business model. Every step that needs to be done by a human outside of a digital process becomes a potential liability. It is important for companies to have a partner with a proven track record that can support them in their digital transformation journey.

Support corporate sustainability and ESG objectives
ESG is undoubtedly one of the most discussed topics in boardrooms today, as consumers demand that organizations prioritize the environment, their employees, and the wider community. Every organization around the globe is grappling with the challenge of balancing people, planet, and profit. Procurement plays a crucial role in addressing issues such as carbon emissions, diversity, and human rights, placing it at a pivotal position.

Ensure regulatory compliance
What seems like a burden to many organizations, is nothing more than governmental force of consumer demands. This is nothing new, just think of Conflict Minerals which has been around for more than a decade now. Legislation like the German Supply Chain Due Diligence Act (LkSG) or the US Uyghur Forced Labor Protection Act (UFLPA) are just recent additions. Another driver is new forms of taxes. As of today, there are 27 countries that introduced some form of carbon emissions taxation. These new requirements have a direct influence on category strategies and awarding criteria.

Improve analytical modeling & reporting capabilities
Data is key to making the right decisions but just capturing data is not enough. Organizations need to have access to this data in near real time and whenever it’s needed. Apart from data visualization, companies need to have better analytical capabilities by using AI and machine learning. One of the biggest disruptors is a change from pulling information by users accessing a dashboard, understanding the data and taking manual action, to the system constantly monitoring and analyzing the data, finding the right patterns and suggesting – or even executing – the next best action.

Manage and control spend cost reduction
In most parts of the world, inflation rates have not been this high in the last 30-40 years, propelled by geopolitical events, energy costs, raw material availability, and logistical issues. It is extremely challenging to generate savings in this scenario, underscoring the importance of cost control. Buyers need to possess market intelligence and responsive systems to seize opportunities to reduce costs. Cost management is not merely a sporadic tactical undertaking but rather creates the essential transparency that shapes a company’s strategies moving forward.

JAGGAER One Direct Procurement Solution
JAGGAER ONE is an integrated suite of sourcing and procurement solutions that help companies transform their procurement function from cost center to value driver by addressing all aspects of direct procurement. Providing end-to-end visibility across the supply chain, JAGGAER ONE seamlessly connects buyers with the right suppliers, and optimizes business processes that span the entire source-to-pay spectrum.

Contact Us Today to Get Started
Ensure supply continuity and holistic spend management by addressing your direct procurement with JAGGAER ONE. Speak to an expert today to learn how JAGGAER ONE Direct Procurement Solution can streamline and automate complex direct procurement, logistics and quality processes.

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