The rise of China as a major global sourcing hub

In the 2000s , China emerged as a major player in global procurement , thanks to its low labour costs and large manufacturing base . Many companies began to source products and services from China , creating a significant shift in global supply chains . China ' s rise as a sourcing hub has had a major impact on global procurement practices , with many companies now using sophisticated procurement strategies to manage their relationships with Chinese suppliers .

The United Nations global compact

The UN Global Compact was a voluntary initiative launched by the United Nations in 2003 to promote sustainable and responsible business practices . The initiative encourages companies to adopt sustainable procurement practices , such as sourcing products and services from suppliers that adhere to high environmental and social standards . The compact has had a significant impact on global procurement by raising awareness of the importance of sustainability and social responsibility in procurement on a global scale .

Pandemic and war : disruption

COVID-19 , which took hold in earnest in 2020 , and the Russian invasion of Ukraine in 2022 have both had an extensive impact on global procurement practices and supply chains . Together , they have caused significant disruptions , forcing companies to rethink their procurement strategies and prioritise supply chain resilience over traditional , predictable approaches .

As a result , many companies have been forced to diversify their supplier base and develop contingency plans to manage supply chain disruptions . The pandemic and Ukraine war have highlighted the importance of risk management in procurement , and it is likely to have long-lasting effects on global procurement practices for years to come .

procurementmag

. com 19