PROCUREMENT STRATEGY
“ True resilience requires a 360-degree view of your supplier ecosystem ”
JIM BUREAU CEO , JAGGAER
you had human error , technical failure and strong winds ,” he says .
How can organisations mitigate against procurement risks ? Supply chains are becoming more complex , and often contain thousands of third-party vendors . This means managing the chain can be a huge challenge . Industry 4.0 tech - such as the Internet of Things - is helping on this front .
“ In the past , risk management was more of a reactive process ,” says Bureau . “ Procurement could draw up contingency and action plans , but they had too little visibility to be anywhere near proactive enough , especially beyond tierone suppliers .”
Until recently , procurement ’ s focus on cost reduction - by minimising inventory and justin-time delivery - resulted in limited wriggle room for organisations to deal with the impact of serious supply chain disruption .
64 March 2022