In a rapidly changing business landscape, organizations must continuously rethink their approach and we will specifically talk about how that applies to procurement and why it is pertinent to stay ahead of the competition. Next-generation procurement is a data-driven, cognitive, and collaborative approach that puts you, the procurement pro, at the center of the procurement process. By challenging the status quo and embracing next-gen procurement, organizations can drive value and achieve their strategic objectives.

We recently concluded a star-studded webinar with Ms. Chaye A. Cabal-Revilla, EVP, Chief Finance Officer, Chief Risk Officer, and Chief Sustainability Officer – Metro Pacific Investments Corporation, Mr. Umang Goyal, Associate Partner – Business Consulting Ernst & Young Advisory Pte Ltd, Mr. Benny Kesuma, Head of Corporate and Professional Service sector (APAC), Global Industry Practice Group, Moody’s Analytics, and Ms. Katlyn Ignacio, Head of Procurement, Outsourcing and Facilities, CIMB Bank Philippines. The theme of the discussion was how supplier risk management is one of the most sought solutions out there. We also discussed how it can be achieved by digitally transforming the sourcing process of an organization by using next-gen procurement solutions.

The current major areas of focus for procurement were highlighted as:

1. Digital Transformation
2. Risk Management
3. Elevating Strategic Performance
4. Responsible sourcing by committing to the ESG goals of the organization

As much as these areas have been in focus in the current year, they will continue to trend in a positive trajectory as focus areas for 2023 as well. Our thought leaders helped us with some key insights on how procurement leaders can live up to this trend and, possibly, even ride this wave for the organization’s gains.

1. “What do you actually know about your supplier? Do your KYS Process well and then you can plan better” – Benny Kesuma, Head of Corporate and Professional Service sector (APAC), Global Industry Practice Group, Moody’s Analytics. He implied that when you know external data and systems, it can play a critical role in complementing or supplementing what you already know about your suppliers. This will not only help you in identifying risks at their onset but also help you prepare in case of a contingency.

2. “The 3S that can help you save costs. Sustainability, Streamlining for Agility, Skill Upgrading” – Katlyn Ignacio, Head of Procurement, Outsourcing and Facilities, CIMB Bank Philippines. She implied that these 3S play an important role when it comes to cost-saving and is mostly overlooked as they have a more indirect than direct impact on costs. These 3S’s can help companies to work more efficiently, even in times of uncertainty, and have a tremendous impact on the bottom line.

3. When asked about new sourcing strategies that could be adopted by the organizations to tackle the rising inflation volatility and supply shortage? Katlyn Ignaciomentioned that“we really need to understand that we are not in competition with our suppliers, in fact, we are in a position in which we need to partner with them and strategically collaborate with them.”

4. Umang Goyal, Associate Partner, Ernst & Young Advisory Pte Ltd, shared the 6 principles they suggest to organizations who are working on improving their ESG efforts:

• Look at your customer and their sustainability/ESG requirements.
• Collaborate with your suppliers towards accelerating adjoint sustainability strategies and targets.
• Organizations need to invest in the awareness, learning capability of the supplier,
• Investing in training the external as well as internal procurement teams.
• Building deeper relationships with your long-term suppliers.
• Communicate your ESG goals internally as well as externally.

5. “Financial Resilience, climate resilience, organizational and operational resilience, and an important part of all these nice resilient strategies would be to include technology and digital transformation to facilitate the realization of all of these objectives. The key to the overall resilience is to ensure a robust and solid supply chain.” – Chaye Cabal-Revilla, EVP, Chief Finance Officer, Chief Risk Officer, and Chief Sustainability Officer, Metro Pacific Investments Corporation

Achieving Excellence: The Hackett Group’s Story with Zycus Generative AI

Witness The Hackett Group’s journey toward achieving excellence in procurement. This video highlights their strategic use of Zycus Generative AI to overcome obstacles and set new benchmarks in the industry.See Their Journey – Click to Watch!

These insights made you introspect your procurement process, didn’t they? To read more such insights on supplier risk and find ways to implement them, please visit Supplier Risk Assessment Program Best Practices or simply click on any of the links on the left to learn more about trends in Procurement and Supply Chain Management. And if your organization is not yet using next-generation procurement, now is the time to make the switch, so why not Request a Demo today?

Related Read:

1. Blog – Five Precepts to Digital Procurement Transformation
2. Blog – Procurement Tech Trends: Transforming Procurement with Conversational AI
3. Blog – Top 4 Business Drivers for Investment in Procurement Transformation 2023
4. Webinar – New Rules for A New World: Why Procurement Must Take the Lead in Accelerating ESG Adoption
5. White Paper – 7 ways you can identify and mitigate contract risks