Big
data and Artificial Intelligence-based decisions open vast possibilities for
procurement. It provides more chances for value creation, monitoring of
quality, and keep all the information updated. Robotics is replacing a large
load of manual work. With the right tools in procurement, companies can get to
outperform the competitors. But need to identify the right tool and the right
practice to adopt these tools.
In
most companies, about 40 to 70 % of the revenue will be spent on suppliers and
partners. And when everything we predicted has been out for waste due to a
pandemic, we need to focus sharply on where to get procurement and how to carry
on the supply chain.
In such a case the procurement team should
prioritize where to spend and how to work with suppliers in a constructive way.
With
the supply chain network having in and out deep knowledge in the channel, they
can identify the risk further involved. With the demand driver supply chain,
the company can be cost-effective and responsive. The network should be planned
for sudden adjustments.
Ways to recover:
- Supplier
development –
Develop new suppliers to reduce the risk.
- Agile sourcing
- Supplier
relationship management
- Engaging with
tier 2 suppliers
- Scenario
analysis –
analyze the situations for unforeseen risk and being ready to make
changes.
Supply chain planning –
Using Demand-driven methodology
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