{"id":16287,"date":"2023-03-22T15:38:41","date_gmt":"2023-03-22T12:38:41","guid":{"rendered":"https:\/\/k-house.in.ua\/?p=16287"},"modified":"2023-03-22T16:34:34","modified_gmt":"2023-03-22T13:34:34","slug":"procurement-2023-ten-major-actions-to-manage-toughest-challenges","status":"publish","type":"post","link":"https:\/\/k-house.in.ua\/en\/procurement-2023-ten-major-actions-to-manage-toughest-challenges\/","title":{"rendered":"Procurement 2023: Ten major actions to manage toughest challenges"},"content":{"rendered":"

Supply chains face another year of volatility and inflationary pressure. McKinsey experts have summarized 10 <\/span>resilience actions that <\/span>Chief procurement officers (CPOs) can deploy to craft a winning enterprise-wide response.\u00a0<\/span><\/h3>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Procurement leaders<\/strong>\u00a0who had hoped that\u00a0macroeconomic conditions\u00a0in 2023 would make their jobs easier than last year are already disappointed. As the new year began, the volatility and inflation of the previous year showed no signs of abating (see sidebar, \u201cMacroeconomic conditions straining procurement\u201d). Some of the most important trends may persist well beyond 2023. What\u2019s more, the procurement function itself continues to face major changes that have made its traditional operating models obsolete. Front-running procurement organizations are increasingly distancing themselves from the rest of the pack, deploying their talent, capabilities, technology, and insights into the world\u2019s complexity in ways that propel them far ahead of the rest of the pack.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

There is no space for one-size-fits-all procurement models in 2023. A category-level response is essential.<\/strong> Some categories continue to experience rising prices and supply constraints, requiring a cross-disciplinary approach to improve the total cost of ownership. Other categories are seeing downward price pressures, creating an imperative for procurement leaders to rapidly capture price improvements.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Understandably, the aggregate effect of these challenges has overwhelmed many procurement functions. Procurement can play a critical role in solving today\u2019s most pressing business problems, but it cannot do so on its own. Winning now requires an entirely new level of resilience improvement and value creation built through a coordinated enterprise-wide effort.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Accordingly, success in protecting margins, containing cost escalation, and dynamically capturing opportunities requires an\u00a0expanded mission for the procurement\u00a0function. CEOs should consider positioning their procurement leaders at the center of the company\u2019s response to the current context, tasked with a clear mandate to protect margins. CPOs can then mobilize executives for cross-functional impact and escalate investments in the talent and systems required to achieve and sustain outperformance.<\/p>\n<\/div><\/div>

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A resilience toolbox: Ten core actions<\/span><\/h2>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>
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Procurement leaders can combat volatility, inflation, and shortages and build resilience by taking ten core actions (Exhibit 1). They should start by gaining transparency into the pressures they face. Then they can apply this visibility to create value across the supply base. This requires mobilizing other parts of the business across supply chain, operations, and commercial capabilities. These efforts should be supported by a central nerve center, a control tower, and new capabilities. Building an agile procurement function with stronger links to internal and external partners is the key to success.<\/p>\n<\/div><\/div>

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\"Procurement<\/div><\/div>
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Create transparency to enable action<\/span><\/h3>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

The transparency necessary to enable action includes a 360-degree view of vulnerabilities and real-time information delivered to a \u201cresilience cockpit.\u201d<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

[vc_cta h2=””]Action one: Identify vulnerabilities with a 360-degree risk assessment.\u00a0<\/strong>To decide on the right actions, CPOs need transparency about three types of risks:<\/p>\n