PROCUREMENT STRATEGY
“ SUPPLIER RELATIONSHIPS IS KEY . THESE ARE OPEN AND TRANSPARENT , WITH A VIEW TO ACHIEVING OUR SUSTAINABILITY GOALS ”
JEAN-YVES KRUMMENACHER GLOBAL CHIEF PROCUREMENT OFFICER , DANONE
says Jean-Yves Krummenacher : “ Relationships work best when you have transparency on the intent and a clear picture of success .
“ Key factors include a KPI scorecard , senior management involvement , and the agility to make quick decisions if the supplier relationship is not working ”
The future of technology As well as maintaining clarity and transparency in its supplier relationships , Krummenacher says emerging technologies also have a vital role to play .
Of course , this begs the question whether AI can make significant improvements to sourcing at a company the size of Danone ?
“ Data is the starting point for supply security ,” says Krummenacher . “ Thanks to certain partnerships , we use AI for Tier 2 and 3 identifications . This really is a game changer in our ability to anticipate supply disruptions .”
This mastery of data is providing competitive advantage , with Danone recently using its partnerships to leverage AI to optimise decisions around ingredient- choice .
“ I believe we have just scratched the surface of how AI can be used ; the potential is immense . Some companies are embracing and investing in AI , but others are being too slow . Generative AI is already transforming procurement . It ’ s up to us to transform it fast into a game changer for Danone .”
54 November 2023