Morrisville NC, Dec 15, 2021 – 2021 marked a year of ups and downs for the supply chain community. On the one hand, procurement was thrust into the spotlight, getting more board-level attention and recognition for the strategic role it plays in an organization’s operations. On the other hand, that increased focus came as a result of global disruptions, drastically hitting the world’s supply chains and hindering the production of many goods and services.
Now that the year is coming to a close, it has marked what many in the profession have described as a trial by fire.
“I can’t recall a more difficult year for procurement professionals. A global pandemic, semiconductor shortage, Suez Canal blockage, the list really could go on forever. It’s a real testament to the profession,” said Jim Bureau CEO at JAGGAER.
In many sectors, such as manufacturing and pharmaceuticals, what this year has highlighted is the need for a direct materials focus. To put it simply, businesses can’t get goods from a supplier to their manufacturing plants in a timely manner.
“If I’m an automotive manufacturer and I’m unable to secure microchips or castings on time my whole operation is delayed. I can’t make the vehicles to give to the dealerships, who then can’t sell to the consumer, who then don’t have a car to drive. It creates a ripple effect that we’ve felt far too often this year,“ said Roger Blumberg, JAGGAER VP Corporate & Product Marketing
To solve this growing issue, organizations need to take a renewed look at their direct materials strategy. There needs to be an emphasis on agility, resiliency and visibility. JAGGAER was recognized in 2021 Gartner® Critical Capabilities report for Procure-to-Pay Suites, where it scored highest (4.14/5) for the direct materials procurement use case.*
Augmenting world-class strategy with technology is the future of procurement and will be a major driver in moving the profession forward.
“Today, we have a globally harmonized purchasing function and a set of standard processes. JAGGAER is an important part of our strategy, which is to transform purchasing from an operationally focused organization to one that is strategically focused, and to achieve this, we need data quality and transparency at both the global and regional level. Without this transparency, you can have the best strategy in the world on paper, but when it comes to executing that strategy, it is impossible.” said Velat Özkilinc, Executive Vice President, Chief Purchasing Officer at Joyson Safety Systems (JSS).
“Having a single platform that’s easy to use, plugs into your ERP system and can aggregate all of a company’s data is priceless. That real-time view on your procurement spend and supply chain risk is such an important tool to have in your belt today. This allows for better collaboration with suppliers, more realistic expectations and the ability to start being proactive, not just reactive. And that’s really the key for procurement in 2022,” Bureau concluded.
*Gartner, “Critical Capabilities for Procure-to-Pay Suites”, Micky Keck, William McNeill, Kaitlynn Sommers, Patrick Connaughton, 15 November 2021. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
About JAGGAER: Procurement Simplified
We drive customer value for buyers and sellers through our global connected network served by offices located in the Americas, APAC, Asia and EMEA. JAGGAER develops and provides comprehensive source-to-settle SaaS-based solutions, including advanced Spend Analytics, Category Management, Supplier Management, Sourcing, Contracts, eProcurement, Invoicing, Supply Chain Management and Inventory Management. These all reside on a single platform, JAGGAER ONE. JAGGAER has pioneered spend management solutions for more than 25 years and continues to lead the innovation curve by listening to customers and stakeholders in all industry sectors, public services and academia. For more information, visit www.jaggaer.com
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