PROCUREMENT STRATEGY
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“ Legacy systems and incompatible technology can impede the adoption of lean practices , exacerbated by integration challenges with existing enterprise resource planning ( ERP ) systems ,” Vengat explains . Existing weaknesses in procurement and supply chain management can also be exposed , he warns . The complex nature of global supply chains can manifest itself
“ The strategy should have clearly defined and measurable objectives aligned with overall business goals ”
KRISH VENGAT N . VICE PRESIDENT , CONSULTING GEP in poor-quality data and a lack of tech standardisation , both of which hinder efficient and consistent decision making .
He says that there are also challenges relating to :
• Supplier relationships
• Short-term cost pressures
• Regulatory compliance
• Ineffective performance measurement
• Cultural barriers
• Budget constraints
• Risk aversion
“ These further complicate the lean procurement journey ,” Vengat adds . “ Successfully overcoming these demands a strategic and holistic approach that encompasses effective change management , technological investments , a culture of continuous improvement and alignment with overall business goals .”
44 Dectember 2023