If your company runs on poor ethical practices, this can have a detrimental effect on its overall value. Today, customers champion businesses they perceive to be ethical and denounce those using disreputable practices.Ĭonsider that nearly 10% of a company’s market cap that’s attributable to reputation relies on social responsibility. In 2018, more CEOs were fired over unethical conduct than poor financial performance, showing just how important corporate social responsibility (CSR) has become. It’s the era of responsible social practices and customers are holding companies accountable for unethical behavior. Here are the top six priorities you should be focusing on to meet your procurement goals in the modern digital age. These factors shape the face of the business in the eyes of the consumer and help to provide operational resilience. While cost control continues to be important, other priorities are having an impact on procurement goals within companies worldwide.Įthics, risk management, and efficiency are now hyper-significant when choosing suppliers. 6 Critical Procurement Goals for Creating a Resilient Business Here are six procurement concerns that your procurement manager should be taking into account for more resilient supply chain management. If cost control is no longer as important as it once was, what other procurement priorities are clinching that top spot? Obviously, procurement managers are focusing on other, more strategic aspects of procurement.Īs Olivier Joseph, Senior Procurement Engagement Manager at Microsoft, explains it: “ Although cost control is still the main priority at Microsoft, it is now one of seven top metrics that are all equally important.”
According to a recent survey, the number of procurement managers who consider cost control as their top priority fell from 82% to 72%. It’s still the top priority but its importance is waning. Traditionally, procurement’s main goal has been low costs. Changing Priorities for a Changing WorldĬost Control - A Waning Procurement Priority.6 Critical Procurement Goals for Creating a Resilient Business.Cost Control - A Waning Procurement Priority.Read on for the top procurement goals that will keep your business flourishing in an unpredictable world Need a better idea on where your purchasing department should be focusing its attention? This results in more resilient procurement processes that keep your business thriving. Why? Because through digitization, standardization, and automation, you’ll be able to keep a closer eye on the risks and responsibilities along your supply chains.
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It’s time to throw out clunky, old-fashioned manual procurement operations and replace them for streamlined automated procurement processes. Ethical practices, risk mitigation, and cybersecurity are more significant than ever. Where cost control was previously the most important item on the procurement agenda, now your main procurement goal should relate to business resilience.
Prioritizing resilient procurement processes has never beeAs organizations are rapidly moving to digital, data-driven environments, it’s wise to migrate purchasing and procurn more crucial in the face of economic collapse. Since COVID-19 swept the world, there have been unprecedented interruptions to global supply chains.
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