EXECUTIVE INSIGHT
As a trailblazer and thought leader in the digital transformation of supply chains , Ken Bradley , Lytica Chairman & Chief Strategy Officer , stands out as a prominent figure in the industry , advocating for the advantages of digital transformation to guide organisations through the dynamic procurement landscape .
He frequently highlights how digital transformation simplifies focus by using data and analytics . Through the utilisation of digital tools to access data such as component pricing , competitiveness , or consumer trends , organisations can pinpoint areas for enhancement , risk mitigation , and resource allocation .
As the world ’ s only provider of electronic component spend analytics and risk intelligence enabled by real customer data , Lytica continues to move the needle and make a difference with tools driven by AI and smart data .
Q . HOW COULD EFFECTIVE PROCUREMENT STRATEGIES REALLY MAKE A DIFFERENCE IN DRIVING BUSINESS SUCCESS AND COMPETITIVENESS ?
» We ’ ve seen what happens with less than effective business strategies during Covid and the shortages when people ran out of components and prices went extremely high . Companies that had more effective strategies did much better . You can go on ChatGPT and you can type in , ‘ what are the business strategies to make a company drive business success and competitiveness ’. It comes back with things like a good cost reduction strategy and a good supplier relationship strategy , risk management and quality assurance , but really the devil ’ s in the details of how it ’ s implemented that make the big difference .
When I look at procurement and procurement strategies , I tend to think of procurement as having three spheres in a Venn diagram . One is the total cost and price , one is security of supply and the other piece is compliance . Are you getting a price that ’ s effective for you ? Do you get the parts when you need them ? Are you getting the stuff you need that meets all the requirements of your market , of your product , of your stakeholders and shareholders and government regulations ?
Really , to have an effective strategy , you really have to understand the goals of the business and the goals of the individuals running the business .
If you have divisional presidents , it ’ s really important that you understand how they can make the business more effective . All of them are going to be slightly different and you ’ ll have to have strategies that address those three spheres uniquely for each of the things you ’ re trying to achieve . It ’ s really in the details , in getting procurement to step out of the role of being just a service group into a role of actually influencing what happens within the business . Making an effective procurement strategy contributes and secondly , it ’ s in the details of how you actually implement it and make sure what you ’ re implementing is actually valued by other parts of your company .
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