STRATEGIC SOURCING
or meeting government regulations like Germany ’ s LkSG ,” she says .
The use of the function to leverage cost management is one of the main value drivers for procurement professionals , as is supplier relationship management .
Etosha explains : “ Breaking down silos that may exist between a business and its suppliers provides the transparency needed to uncover potential risks in the supply chain and supplier base at an early stage .”
Jos believes the approach to enterprise procurement must be continuously reviewed and enhanced , adding to the importance of adapting to new regulations that demand increased scrutiny of the supplier base .
“ New risks may arise from various types of supply disruptions , such as unforeseen events or scarcity of raw materials ,” he notes .
“ Additionally , AI and digital platforms may present new automation opportunities . It ’ s anticipated that AI could automate 50-70 % of procurement activities in the near future .
This prospect encourages companies to further refine their procurement strategies soon to stay competitive .”
Enhancing risk management : Tackling supply chain and procurement challenges Procurement operates at the very centre of supply chains and is therefore subjected to the kinds of disruptions impacting businesses across the globe .
From tackling geopolitical issues to meeting regulations , SAP Ariba ’ s
Supplier Risk solution offers several benefits , including :
• Cloud-based deployment : Easily accessible and scalable
• Risk due diligence : Targeted assessments for suppliers
• Proactive monitoring : Ongoing risk alerts and compliance checks
• Collaborative remediation : Team-based risk management actions .
Etosha believes it is essential for procurement strategies to be
120 August 2024