ProcureCon Direct 2021 Blog
Material companies are proud of their clients, proud to promote and to use the brands to which they contribute. These firms invest significantly in Research and Development efforts to develop new products that are aligned with corporate strategy.
In a direct material situation, procurement professionals have a wonderful opportunity to harness the resources of the supplier community to innovate. I’ll explore two of them in two sequential columns. In this column, we’ll talk about linking suppliers to people within your company to achieve innovation.
Companies provide a part or ingredient for a particular product but be shockingly unaware of the other brands produced by the same customer, other products they could be supporting.
In the first years of professional procurement, it was all about consolidating suppliers and using leverage to reduce costs. As more cost comes out of the supply chain, the projects and ideas that result from a good SRM relationship are the new places where value can be added.
How can those overseeing direct procurement show value with the disruption of automation/digitization?
We all want our key suppliers to weather the storms of change with us. But if your supplier can’t help you create the disruption that your company needs, at some point you need to find another one.
Blockchain's much-vaunted security can be deployed to strengthen the supply chain with more effective and efficient processes. By removing intermediaries, the technology can create a significantly faster and more streamlined payment. Many procurement departments are still relying on archaic business practices such as paying by check, which can clearly cause a significant slowdown in getting purchases authorized.
As more and more digital technology gets added to business processes and customer/client experiences, the resulting volumes of data go through the roof. Rather than let this mountain of information just sit there, savvy companies are putting it to work for them.
Novartis has in-house experts in all these fields who are permanently employed to advise and assist with enforcement and revision of these conditions, which means Novartis can be constantly reassessing and developing its strategy as it moves forwards, remaining agile to the ever-shifting socioeconomic landscape of the global procurement marketplace.
The US/China trade war is likely to have widely-felt repercussions for the procurement industry well into 2019 and potentially beyond, and professionals in the sector would be wise to act now to make sure they are best prepared to mitigate the costs as much as possible.
One of the main ways Brexit is going to affect US procurement is through those companies who use the UK as a gateway to the EU.For many years now - even since the Bush Jr. era - the UK and the US have enjoyed what they have jointly referred to as a "special relationship". This relationship has covered everything from military action and intelligence sharing to political alliances and trade.
Direct procurement is in the midst of similar technology driven changes as indirect procurement, centered around the implementation of automation and the repercussions of the resultant environment created. We will be exploring these factors and others in the full length study for ProcureCon Direct that will release in June 2019.