Procurement Magazine June 2023 | Page 18

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These events have led to increased costs , supply shortages , and regulatory compliance concerns . A traditionally cost-minimisation focused function is now shifting its operating principles to think about the balance between cost and supply performance .
The dependency on China has called on enterprises to think about a China-plus-one / alternate sourcing strategy and nearshoring opportunities . These challenges point to procurement being at the cusp of a transformation from a cost reduction philosophy to service-level maximisation lever .
The first step in this transformation journey has to be a thorough supply-side visibility using a quantitative approach to supply availability risk assessment , and the associated cost analysis .

“ The role of data + analytics + AI and technology paired with good old supply chain thinking will help organisations unlock their true procurement potential ”

18 June 2023