Mais informações

Relatórios de analistas

Blog

Brochures

Checklist

Casos de sucesso

Datasheets

Aprender

eBooks

Infografias

Notícias

White Paper

Contacto

Seminários on-line

Eventos

Comércio autónomo

ESG

Sobre nós

Plataforma JAGGAER One

Carreiras

Conformidade e Segurança

Casos de sucesso

Support

Partner Marketplace

Torne-se um parceiro

Por indústria

Educação

Fabricação

Energia y Utilidades

Serviços Financeiros

Cuidados de saúde

Ciências da Vida e Farmacêutica

Por indústria

Retalho

CPG

Setor público

Transporte e Logística

Por função

Compras

Finanças

Tecnologia da Informação

Cadeia de fornecimento

Por necessidade

IA em compras

Redução de custos

Aquisição Direta

ESG

Integração com outros sistemas empresariais

Rentabilidade das compras

Otimização de fornecimento

Visibilidade das despesas

Cumprimento dos fornecedores

Aprender

Informes de analistas

Blog

Brochures

Checklist

Casos de éxito

Datasheets

Aprender

eBooks

Infografías

Noticias

White Paper

Contacto

Webinars

Eventos

Comercio Autónomo

ESG

Acerca de

Plataforma JAGGAER One

Carreras

Cumplimiento y seguridad

Historias de éxito

Soporte

Partner Marketplace

Conviértete en partner

Por industria

Educación

Manufacturing

Energía y Utilities

Servicios financieros

Sanidad

Farmacéutico y Ciencias de la vida

Por industria

Retail

Bienes de consumo envasados

Sector Público

Transporte y Logística

Por función

Compras

Finanzas

Tecnologías de la información

Cadena de suministro

Por necesidad

IA en compras

Reducción de costes

Compras directas

Criterios ESG

Integración con otros sistemas empresariales

Rentabilidad de compras

Optimización de compras

Visibilidad del gasto

Compliance de Proveedores

Scopri di più

Analyst Reports

Blog

Brochure

Checklists

I nostri clienti. Storie di successo

Datasheets

Imparare

eBooks

Infographics

News

White Paper

Contattaci

Webinar

Eventi

Autonomous Commerce

ESG

Chi siamo

La piattaforma JAGGAER One

Lavora con noi

Compliance & Security

Storie di successo

Servizio Clienti

Partner Marketplace

Diventa Partner

Per settore

Education

Manufacturing

Energy and Utilities

Financial Services

Healthcare

Life Sciences and Pharmaceuticals

Per settore

Retail

Consumer Packaged Goods (CPG)

Settore pubblico e regolamentato

Trasporti e logistica

Per funzione

Procurement

Finance

IT

Supply Chain

Per necessità

AI nel Procurement

Riduzione dei costi

Direct Procurement

Obiettivi ESG

Integrazione nell'ecosistema aziendale

Procurement Profitability

Sourcing Optimization

Spend Visibility

Supplier Compliance

Success stories

Service client

Erfolgsgeschichten

Kundensupport

Lernen

Analyst Reports

Blog

Broschüren

Checklisten

Kundenerfolgsgeschichten

Datenblätter

Lernen

E-Books

Infografiken

Nachricht

Whitepaper

Verbinden

Webinare

Veranstaltungen

Autonomous Commerce

ESG

Über uns

Die Platform

Karriere

Compliance und Sicherheit

Partner Marketplace

Partner werden

Nach Branche

Bildungswesen

Fertigende Unternehmen

Energie und Versorgung

Finanzdienstleistungen

Gesundheitspflege

Biowissenschaften und Pharmazeutik

Nach Branche

Einzelhandel

Consumer Packaged Goods (CPG)

Öffentlicher Sektor

Transport und Logistik

Nach Rolle

Beschaffung

Finanzen

Informationstechnologie

Lieferkette

Nach Bedarf

KI im Einkauf

Kostenreduzierung

Direkter Einkauf

ESG-Ziel

Integration in die Geschäftssystemlandschaft

Beschaffungsrentabilität

Beschaffungsoptimierung

Ausgabentransparenz

Lieferanten-Compliance

Marketplace des partenaires

Devenir un partenaire

Ressources utiles

Rapports d'analystes

Blog

Brochures

Checklist

Témoignages de nos clients

Datasheets

Learn

eBooks

Infographies

Actualités

Livres blancs

Nous rencontrer

Webinaires

Événements

Commerce autonome

ESG

À propos

La plateforme

Emplois

Conformité et sécurité

Par industrie

Éducation

Fabrication

Énergie et Utilities

Services financiers

Santé

Sciences de la vie et produits pharmaceutiques

Par industrie

Retail

Consumer Packaged Goods (CPG)

Secteur public

Transport et logistique

Par département

Achats

Finance

Informatique

Supply Chain

Par besoin

L'IA dans les achats

Réduction des coûts

Achats directs

Objectif ESG

Intégration dans le paysage des systèmes d'entreprise

Rentabilité des achats

Optimisation du Sourcing

Visibilité des dépenses

Conformité des fournisseurs

Learn

Analyst Reports

Blog

Brochures

Checklists

Customer Success Stories

Datasheets

Learn

eBooks

Infographics

News

White Paper

Connect

Webinars

Events

About

ESG

Autonomous Commerce

JAGGAER One Platform

Careers

Compliance & Security

Success Stories

Customer Support

Partner Marketplace

Become a Partner

By Industry

Education

Manufacturing

Energy and Utilities

Financial Services

Healthcare

Life Sciences and Pharmaceuticals

By Industry

Retail

Consumer Packaged Goods

Public Sector

Transportation and Logistics

By Role

Procurement

Finance

IT

Supply Chain

By Need

AI in Procurement

Cost Reduction

Direct Procurement

ESG Goal

Integration into Business System Landscape

Procurement Profitability

Sourcing Optimization

Spend Visibility

Supplier Compliance

Blog

Supply Chain Visibility: By Getting the Bigger Picture, We Can Reward Innovation and Success

Supplier Management

This is the first in a three-part series dealing with points raised in a roundtable discussion on supply chain visibility hosted by JAGGAER earlier in the year, with the participation of procurement leaders from several industry sectors.


One of the lessons of the pandemic for procurement is the value of being able to make quick decisions, reacting at speed in a way that we were less able to in the past. Procurement teams exhibited plenty of boldness and resilience, and this earned respect and recognition of the value we can add, as opposed to simply managing costs.

Having said that, the pandemic is only one of many different disruptions that we’ve had to endure and that we will continue to endure. The Suez Canal blockage alone disrupted about 16% of global trade, which amounts to billions of dollars every day. We’ll also have continuous issues with Brexit, trade wars, natural disasters and the disruptions caused by climate change. And, sad to say, we may soon face another pandemic.

Before the pandemic hit, another issue had moved up the agenda: corporate social responsibility. End customers want to know where the goods they buy are produced and under what conditions, and how. If they don’t like the answer to that question, your brand reputation will suffer, and customers will stop buying your products. For a variety of reasons, we can expect CSR to become an even more significant factor in procurement in the coming years.

The Pillars of the Procurement Function

At board level therefore, business leaders want to hear about mitigation of supply chain risk, sustainability, and addressing their CSR agenda. If you don’t have a contribution on these issues, you probably will not be invited into the discussion. All of which means there are now three pillars to the procurement function, where in the past, there was just one. That’s to say, you now have your day-to-day business as usual job of buying effectively to manage costs. But you can add to that supply chain risk mitigation, and then the CSR, sustainability, supplier diversity and environmental, social and governance (ESG) agenda – all of which I would summarize as bringing good business into alignment with doing the right thing.

A lot of this falls upon procurement, but that’s no bad thing – in fact, it’s a great opportunity. We need and deserve a seat at the table for all big decisions. And to be able to respond to the demands of the business we need to make the procurement function more agile and, at the same time, more resilient. We need to be better able to predict disruptive events and manage ways around them.

Procurement practitioners who attended a recent roundtable that we hosted said that they regard recent disruptions in terms of a macro trade risk, which has come into focus as opposed to supplier risk per se because the macro risks – Brexit is an example, or the trade war between China and the USA – tend to impact many (or even most) suppliers in the supply base. Regulations and standards can change overnight and suddenly suppliers you depended on in certain markets are no longer fit for purpose the following day.

And while dual sourcing or multi-sourcing strategies might get you through certain challenges, there are limits, because you don’t want to end up changing suppliers the whole time. More than ever, therefore, you need to get visibility into suppliers’ capabilities, so that you can choose ones that have the agility to keep up with this rapidly changing trade environment that we are in, and that the suppliers themselves are in. This is prompting us to take a broader view of supplier visibility, one that starts with a whole new way of qualifying suppliers at the outset, thinking of the unknown eventualities. We need to think upfront not just about how suppliers perform in “normal” times but rather, how could they cope with various disruptive scenarios. You can only swap out suppliers every so often, and this implies taking a longer-term strategic view of supply chain visibility, supplier relationships and risk management.

In this context it is also worthwhile reminding ourselves that more than ever, it is customers and their demand that shape how we manage supply chains and drive the need for broader and deeper visibility.

Shareholders also make a point now of asking for evidence that companies are progressive and purposeful, and that they have incorporated their values in their day-to-day business. This was unthinkable until just a few years ago, but now it is an important consideration in major investment decisions.

Taking all of these points into consideration, organizations that want to manage these situations must map out their supply chains effectively, not just at tier 1, but also tiers 2 and 3. They should also become bolder and more positive in their approach to working with suppliers. One example is managing contracts with a view to incentivise innovation and success rather than avoid or mitigate failure. This is not an “either/or” – most companies already do this to some extent – but rather a shift of emphasis in the “both/and”. Longer-term strategic relationships with suppliers must be built on mutual respect and a desire to see shared benefits and mutual growth.

Of course, this creates a dilemma. The KPI par excellence for procurement is cost savings. We therefore need to get the business to recognize up front what it is prepared to invest in for things like security of supply, eliminating regulatory and reputational risk, and rewarding innovation, when there is still unrelenting pressure to contain or reduce costs. An interesting point raised in our discussions was that the only mature approach is for the business to say, “We’re going to factor in a percentage cost and that’s worth X in terms of maintaining the continuity and quality of supply”. It’s akin to recognizing a fair margin. It requires some maturity to accept that there is a price to pay for security of supply and sustainability, but if it delivers value, it is a good investment.

In summary, and avoiding jargon, what mature organizations should be saying to their procurement functions is less “Get me the same stuff but 5% cheaper” and more “Get me something I didn’t have before, and which will be of benefit to the business and expresses the values that we espouse.”

We need to learn to put a value on intangibles like innovation and success. Because to have true visibility, you need to know what you are looking for, and what it is worth.

 

Read more:

Part 2 | Aligning Procurement: People, Technology and Processes to Deliver Value

Part 3 | How to Talk Procurement to Non-Procurement People

Additional Resources

Maturity Assessment

Take this quick Autonomous Commerce Maturity Assessment now to identify your maturity stage and the next steps to take in your journey.