![]() According to Sawchcuk, modernizing technology not only improves agility, it enables customer-centric processes and cost efficiencies. “We need to be agile, because there will always be disruptive forces in the marketplace that challenge organizations.”Ħ.Procurement Application Platform Modernization: A critical aspect of supply chain agility is the move toward modernizing procurement applications. ![]() “It’s the reason organizations are accelerating their digital transformations,” he said. Sawchcuk noted that vision statements in many procurement organizations as well as enterprise objectives at the corporate level have agility as a key component. In other words, how do we have foresight into what we think might happen?” “But there’s also a need for predictive capabilities. “From a risk standpoint, you must be able to react in a way that prevents the event from having a material impact on the business,” he said. As a result, we have seen massive acceleration around procurement digital transformation, and in a September follow-up survey, the 77% number increased to 88%.”ĥ.Procurement Agility: According to Sawchcuk, agility defines your capability as an organization to react to any event. “They noticed that organizations that responded effectively during the pandemic were more mature in their digital transformation efforts, and had greater visibility across the supply chain. “Our study found that 77% of organizations highlighted they would moderately to highly accelerate their digital transformation efforts,” he said. “Today’s Procurement organizations must be more intelligent, and provide the data analysis and intelligence to inform our stakeholders as they make critical business decisions,” Sawchcuk said.Ĥ.Procurement Digital Transformation: Although procurement digital transformation isn’t new, Sawchcuk noted that the pandemic has resulted in its acceleration. “For many organizations risk has become not only an executive committee issue, but a board-level discussion,” he said.ģ.Procurement as a Strategic Business Advisor: With an increased focus on reducing risk and increasing agility, and the need for greater supply chain visibility, Procurement has been elevated to a strategic position within the business. Sawchcuk added that a lack of supply chain visibility beyond tier-one suppliers made the disruption of the pandemic even more impactful, causing organizations to invest in managing and mitigating risk. “The impact of all of that is that organizations are actively creating geographical supplier diversity within their supply chains, to strike a better balance between cost reduction and agility,” he said. “Supply was coming from certain geographical regions that were locked down or restricted,” said Sawchcuk, although there were several types of businesses that were able to continue to operate effectively. This was due in large part to the way they were designed. Supply Chain Risk and Supply Continuity: Risk moved front and center of Procurement during the pandemic, as procurement organizations grappled with constrained supply chains. ![]() In 2021, organizations will look to further capitalize on their investments by realizing additional cost benefits.Ģ. Despite the initial capital investments, these technologies are driving efficiencies that ultimately lead to cost reduction. ![]() However, because of the trend toward digital transformation, organizations have had to invest substantially in new technologies. You can take a quick view of the webinar here or read this summary of those issues and Sawchuck’s take on the research findings:ġ.Spend Cost Reduction: According to Sawchuck, over the last 15 or more years, a focus on reducing spend and costs has taken top priority. In a recent webinar hosted by Ivalua, Chris Sawchuck, Principal and Global Procurement Advisory Practice Leader from The Hackett Group shared 10 key issues that will have a significant impact on Procurement organizations in 2021. While 2020 introduced unprecedented challenges for procurement organizations as they struggled to maintain business continuity and keep supply chains operational, 2021 will continue to present unique challenges even as businesses begin to recover from the chaos and instability of last year, and try to build in supply chain resilience and better supply chain resilience into their Procurement strategies. The research encompasses organizations across industries and sectors, with focus on North America and EMEA. Every year, The Hackett Group surveys global organizations to better understand their top priorities. Supply Chain Transformation is ongoing but never more important than in 2021. By Vishal Patel What Will Impact Procurement Processes in 2021? ![]()
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