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The variety , volume and velocity of data we are dealing with and expected to make decisions from is mind-boggling . This is where human and artificial intelligence can be used in tandem
suppliers or sourcing locations and the focus was very much on driving savings , and on cost management . However , over the last five years or so , the kinds of discussions I ' m hearing increasingly center on the earlier stages of operations , such as the research and development phase , and on more niche supply markets . For example , a recent client shared that their business was still deciding on what sort of protein to use in its plant-based food product . While soy is the common option , the organization ’ s procurement function was being asked whether a more sustainable and cost-effective alternative was available . In this way , we can see that procurement is increasingly being involved in earlier operational decision-making , new product development and R & D discussions .
Proactive risk assessment
“ Another shift in thought is evident in the area of risk . While risk assessment is nothing new , and clients have always been concerned about the financial stability of suppliers and supply continuity , now they are increasingly interested in additional risks , such as anti-money-laundering practices or cybersecurity incidents . I think today procurement looks at risk in a much more varied way , and the approach to category management is far more strategic ,” she affirms .
This shift seemed to become more pronounced because of the pandemic , and the geopolitical climate at the time . “ From the Suez Canal blockage to sanctions and the situation in Ukraine , disruption has become the new norm . We are in a poly-crisis . While the procurement and supply chain function were able to manage those unprecedented conditions and emerge the other side , there is now a new baseline for expectations , and that involves procurement taking a much more strategic role ,” Prerna continues .
“ The most common theme that emerges is that procurement must become more insight driven . Data has been used in decision making for some time , but with advances in technology and greater amounts of data available , procurement has much more intelligence to harness . That said , the variety , volume and velocity of data we are dealing with and expected to make decisions from is mind-boggling . This is where human and artificial intelligence can be used in tandem to examine behavior and enable proactive risk assessment . Making sense of internal data enables intelligent procurement to play an even bigger part . The role of procurement is not changing in any big way ; it remains the custodian of the third party spend . It still focuses on business resilience , risk
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