In 2023, the procurement industry will see new trends, and European professionals must keep up. Awareness of these trends, such as risk management, sustainability initiatives, procurement resilience and predictive analytics, is vital for businesses to stay competitive. With supply chain disruptions and changing market conditions in Europe, it is more important than ever before for organizations to have a robust and agile procurement function.

As procurement leadership undertakes planning for 2023, driving agility for achieving healthy performance against their core key performance indicators (KPIs) even in the times of significant disruption, will be a key value driver for CPOs. 

Zycus recently conducted a virtual event on ‘Driving procurement resilience amidst economic downturn & uncertainty’, where over 65 procurement and supply chain professionals from some of UK, Benelux, and Nordic region’s largest enterprises, such as Chubb, Lloyds Banking Group and Danfoss A/S, etc. gained a deeper understanding of the factors contributing to procurement resilience, as well as insights into practical tools and techniques for driving procurement resilience in their own organizations. The high level of attendance and representation from these large organizations is a testament to the importance of procurement resilience, especially amidst economic uncertainty.

The speaker panelists,  Hamish McKechnie-Sharma, Partner at EY UK; Enrico Aresu, Director, Moody’s Analytics and Zycus experts Gareth Adams and Thomas Bioud, explored five ways that organizations can drive procurement resilience amidst an economic downturn: 

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Embrace Data Transparency:

In times of uncertainty, having access to accurate and up-to-date data is essential. Data transparency helps procurement professionals make informed decisions and reduces the risk of supply chain disruptions. The panelists also emphasized the need for procurement professionals to have a clear understanding of the entire supply chain, including suppliers, production processes, and delivery times. 

Check out Our Blog- An Eloquent Path to Supply Chain Resilience

Pursue Cost Savings Opportunities:

The panel then moved on to cost savings opportunities, discussing how procurement professionals can identify new ways to reduce costs and optimize supplier relationships. Economic downturns often lead to reduced budgets and increased pressure to cut costs. Procurement professionals can help drive resilience by identifying new cost savings opportunities, such as optimizing supplier relationships and improving the sourcing process. 

Leverage Technology:

The role of technology in driving procurement resilience was a key focus of the discussion, with the panelists highlighting how procurement software can help automate processes, increase data accuracy, and reduce the risk of supply chain disruptions. The panel also discussed how procurement professionals can use technology to analyze trends, monitor supplier performance, and identify potential risks. 

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Build Strong Relationships with Suppliers:

Building strong relationships with suppliers is key to ensuring supply chain stability during uncertain times. Procurement professionals should work closely with suppliers to understand their capacity, production processes, and delivery times. This can help identify potential risks and take proactive measures to mitigate them. 

Foster a Culture of Continuous Improvement:

Finally, the panel discussed the importance of fostering a culture of continuous improvement within the procurement organization. This means regularly reviewing and updating processes, seeking out new ways to increase efficiency, and being open to innovative ideas and approaches. By continuously improving, procurement professionals can help ensure that their organization is resilient and ready for whatever challenges may arise.

The response from attendees was overwhelmingly positive, with many noting the practical and actionable advice provided by the panelists. The virtual event provided a valuable platform for procurement professionals to connect and exchange ideas, and the discussions and insights shared will no doubt be invaluable for attendees as they work to drive procurement resilience in their own organizations.

Overall, the virtual event was a remarkable success, and we are grateful for the participation of all those who attended. If you were unable to attend, you can still watch it by clicking here- Driving procurement resilience amidst economic downturn & uncertainty: A European Perspective

Related Read:

1. Blog – Evolution of the Chief Procurement Officer: From Cost Control to Value Creation
2. Blog – Leveraging Technology in Public Procurement
3. Blog – Becoming a Best-In-Class Procurement Organization with People and Process
4. Research Report – Procurement Benchmarking: Analyzing the Cost of Procurement as a Percentage of Spend
5. White Paper – The 11 Most Important KPIs to Unlock Sustained Procurement Performance in 2023