Procurement Transformation Institute
Procurement Value Delivered
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Issue 71, 25th July 2019
This Week's Highlight
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How Sustainable and Strategic Procurement Strengthen Your Supply Chain.
On August 6th at 4PM BST, you’ll learn:
- How strategic sourcing and sustainability mitigate risk throughout the supply chain
- The way that innovative digital solutions (eProcurement) increase the efficiency and effectiveness of your sourcing strategy
- How to implement strategic sourcing: best practices, where to start, and how to partner with suppliers to foster competitive advantage.
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People
Diversity is key to the evolving procurement function:
Historically, procurement used to be seen as administrative, process driven, reactive and policy focused – now, we are finally being seen as strategic business partners. As the function has changed and evolved, so have the requirements of those working in the space. “It’s important now more than ever that procurement professionals have a broad business acumen, both from an understanding and skill perspective.
Now, it’s not just qualifications and knowledge, but soft skills such as negotiation and innovation that are key to winning in the procurement sphere.
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Technology:
Three Ways AI Makes Procurement Smarter
Procurement data has exploded because procurement has evolved into something called “intelligent spend management,” which oversees all corporate purchasing processes including direct and indirect purchases, travel and external labour.
Business leaders must offer transparency into the metrics and data used, how vendors were selected and ranked, and other elements that trained AI algorithms.
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Knowledge
Supply chain lessons learned from Fyre Festival
In April 2017, the attention of the world turned to the island of Great Exuma in the Bahamas, where a logistical tragedy of spectacular proportions was unfolding. Billed as a luxury, immersive music festival, held over two “transformative” weekends on the “boundaries of the impossible,” Fyre Festival promised to be the ultimate getaway experience on a private island.
To the horror of the several thousand Instagram influencers, paying guests and local Bahamians, the festival weekend unfolded into one of the most dramatic and highly-publicised calamities in recent memory.
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Process.
This 22-part plan is how we can feed the world by 2050
We need to slash emissions from agriculture while at the same time feeding billions more people. It’s a difficult task, but there’s a path forward to make it work.
Roughly a third of the food produced globally is lost before it’s eaten. There are numerous new innovations that can help, from a plant-based coating for fruit that can help prevent it from spoiling to solar-powered cold storage for the developing world.
Improve crop breeding to boost yields.Tools like CRISPR can be used to create crop varieties that grow the maximum amount possible.
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CULTURE:
The challenges of sourcing overseas:
Different Technical or Industrial Standards.
Varying import or export restrictions at either end of the transaction, such as tariffs and quotas.
Complicated documentation requirements for cross-boarder processes.
Fluctuation of currency exchange rate.
Unstable economic and political climate or local or regional environment
Cultural differences can be a concern. Understanding the business and social practices of your supplier's country can help build trust and develop relationships.
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