October 4, 2023
Procurement Groups Compelled to Lower Corners as Exterior Challenges Chew and Investments in New Know-how Do not Preserve Tempo
  • Almost a 3rd (32%) of procurement groups concede to reducing corners with their sourcing standards for suppliers to safe provide.
  • 81% of procurement groups really feel pressured by government groups to reply extra rapidly and successfully to challenges similar to inflation, disruptions, and shortages.
  • 49% consider that international provide chains will not totally get better to pre-Covid operational norms till 2024 or past
  • Solely 24% of government groups have fast-tracked investments in new expertise for procurement.

REDWOOD, Calif., Oct. 25, 2022 /PRNewswire/ — A brand new Procurious report, sponsored by Ivalua, has revealed that 32% of procurement groups have “minimize corners” with their sourcing standards to safe provide, as eighty-one % (81%) of them really feel pressured by executives to reply to challenges “extra rapidly and successfully”.

The examine “Procurement Beneath Strain: Procurement Bends and Adapt – Will it Break?” reveals a majority of respondents determine inflation (88%) in addition to provide chain disruptions and shortages (82%) as prime components pressuring procurement.

The report reveals that 52% of respondents are prioritizing enterprise continuity and operational resilience over different targets, with 46% specializing in buyer satisfaction, service, and expertise. Given the present market challenges and geopolitical uncertainties solely 7% see ESG outcomes as a precedence, which is in stark distinction with strengthening regulatory frameworks and demanding client preferences requiring extra transparency to fight greenwashing.

“Decreasing due diligence requirements can result in surprising high quality, moral, or sustainability points. Chopping corners and dealing with dangerous suppliers cannot solely result in regulatory fines or penalties but additionally considerably injury a corporation’s model with shoppers and repute with different key stakeholders similar to buyers and future expertise,” mentioned Alex Saric, Chief Advertising and marketing Officer at Ivalua.

As exterior systemic shocks proceed to affect worth chains, practically half of respondents (49%) consider that international provide chains will not totally get better to pre-Covid operational norms till 2024 or past. Nonetheless, regardless of the elevated strain, solely 21% of procurement groups have seen headcount enhance on their crew. All this has led procurement groups to rework the way in which they interact with their suppliers, by actively collaborating with suppliers (79%) and actively managing elevated danger (64%).

“Because the Procurious report illustrates, a digitalized strategy to procurement is now extra essential than ever to allow provide chain groups to deal with the continuing strain of disruptions, stock-outs, inflation, and widespread political instability with out negatively impacting different targets,” added Saric. “Procurement groups want higher funding in folks, processes, and applied sciences to uphold sourcing requirements, preserve ESG commitments and values, navigate at this time’s stormy markets and insulate their organizations towards future headwinds”.

In regards to the examine.

Procurious and Ivalua teamed as much as survey over 170 procurement and provide chain professionals across the globe to know the worldwide financial, logistical, and market forces which might be pressuring provide chain and procurement leaders in 2022 and as they put together for 2023.

About Ivalua.

Ivalua is a number one supplier of cloud-based Spend Administration software program. Our full, unified platform empowers companies to successfully handle all classes of spend and all suppliers, growing profitability, bettering ESG efficiency, decreasing danger and bettering worker productiveness. We’re trusted by lots of of the world’s most admired manufacturers and acknowledged as a frontrunner by Gartner and different analysts. Study extra at www.ivalua.com. Observe us at @Ivalua.

About Procurious.

Procurious is an internet enterprise community for the brand new technology of procurement and provide chain professionals.

SOURCE Ivalua

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