Keeping up to speed with new developments is vital for any procurement professional.
Here, we explore three areas
that should be on the radar.
Three supply
chain challenges
for procurement
professionals
in 2024
Keeping up to speed with new developments is vital for any procurement professional.
Here, we explore three areas
that should be on the radar.
Three supply
chain challenges
for procurement
professionals in 2024
Procurement professionals constantly battle to balance
today’s needs with the demands of the future, and it’s all
too easy to become bogged down in the day job.
Focusing on three key challenges will help them to navigate the current climate
and ensure they’re well placed to meet the needs of their organisation in the future:
Procurement professionals
constantly battle to balance
today’s needs with the demands
of the future, and it’s all
too easy to become bogged
down in the day job.
Focusing on three key challenges
will help them to navigate the
current climate and ensure they’re
well placed to meet the needs
of their organisation in the future:
Managing risk has always been an essential part of
the role for procurement professionals, but today’s
environment means that it’s more important than ever.
MANAGING SUPPLY CHAIN RISK
Managing risk has always been
an essential part of the role for
procurement professionals, but
today’s environment means that
it’s more important than ever.
The main challenges facing
procurement professionals
in 2024 are:
MANAGING SUPPLY
CHAIN RISK
Procurement professionals surveyed for the
Amazon Business 2024 State of Procurement Report
say three of their top priorities are:
Artificial intelligence (AI) is emerging as a way of staying on top of the various threats,
helping organisations monitor and mitigate a wide range of risks. Almost half
(47 per cent of procurement professionals) already use AI to optimise procurement
decisions, and nearly all (98 per cent) are planning to invest in analytics and insights tools,
automation and AI-driven optimisation of procurement decisions in the next few years.
CLICK TO REVEAL
What industry leaders are saying
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Procurement professionals surveyed for the Amazon Business 2024 State of Procurement Report say three
of their top priorities are:
Artificial intelligence (AI) is emerging as a
way of staying on top of the various threats,
helping organisations monitor and mitigate
a wide range of risks. Almost half
(47 per cent of procurement professionals)
already use AI to optimise procurement
decisions, and nearly all (98 per cent) are
planning to invest in analytics and insights
tools, automation and AI-driven optimisation of
procurement decisions in the next few years.
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2
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This could help procurement professionals decide whether to enter into a contract
with a particular supplier, or wait until prices drop. Similarly, it could indicate a need
to diversify the supply base to ensure a good range of supply should availability fall,
or suppliers face financial difficulties.
There are other ways AI can help procurement departments reduce risk.
Amazon Business, for instance, provides detailed analysis of an organisation’s spend.
This provides the insight needed to reassess buying decisions and encourage internal
buyers to purchase from particular companies, reducing the risk of overspending
or sourcing from organisations that do not meet certain criteria.
From a risk perspective, AI and machine learning can
be used to predict events before they happen.
Examples include:
CLICK TO REVEAL
What industry leaders are saying
This could help procurement professionals
decide whether to enter into a contract with
a particular supplier, or wait until prices drop.
Similarly, it could indicate a need to diversify
the supply base to ensure a good range of
supply should availability fall,
or suppliers face financial difficulties.
There are other ways AI can help procurement
departments reduce risk. Amazon Business,
for instance, provides detailed analysis of
an organisation’s spend. This provides the
insight needed to reassess buying decisions
and encourage internal buyers to purchase
from particular companies, reducing the risk of
overspending or sourcing from organisations
that do not meet certain criteria.
From a risk perspective, AI and
machine learning can be used to
predict events before they happen.
Examples include:
Machine learning and data analytics can help forecast demand and implement appropriate buying strategies
to balance having stock and maintaining cash flow.
Smarter business buying
START HERE
Machine learning and data analytics can help forecast demand and implement appropriate buying strategies
to balance having stock and maintaining cash flow.
Smarter business
buying
START HERE
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There are other benefits too. Having a clear idea of what is needed and when means procurement can offer a better service to your internal customers, including giving
them responsibility for making purchases themselves, with approved suppliers.
This is a growing trend; the Amazon Business 2024 State of Procurement Report
finds that three in 10 procurement professionals want to decentralise procurement.
This can also lead to more effective buying.
A report by McKinsey suggests that AI-enabled supply chain management can:
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There are other benefits too. Having a clear
idea of what is needed and when means
procurement can offer a better service to
your internal customers, including giving
them responsibility for making purchases
themselves, with approved suppliers.
This is a growing trend; the Amazon Business 2024 State of Procurement Report finds that
three in 10 procurement professionals want
to decentralise procurement.
This can also lead to more effective buying.
A report by McKinsey suggests that
AI-enabled supply chain management can:
Effective spend information is vital, though, if organisations
are to develop smart business buying strategies, and that means
understanding just what is being spent, where and when.
Tools such as Amazon Business Analytics and Spend Visibility (a paid feature)
can help Amazon Business customers with this, while its smart business buying tools can help organisations anticipate reorders and predict what they’re likely to need.
Such technology is already starting to infiltrate the world of procurement.
The Amazon Business 2024 State of Procurement Report finds that:
Effective spend information is vital, though, if organisations are to develop smart business buying strategies, and that means understanding just what is being spent, where and when.
Tools such as Amazon Business Analytics and Spend Visibility (a paid feature) can help Amazon Business customers with this, while its smart business buying tools can help organisations anticipate reorders and predict what they’re likely to need.
Such technology is already starting to
infiltrate the world of procurement.
The Amazon Business 2024 State of
Procurement Report finds that:
While there’s an obvious temptation to opt for lower-cost items, organisations need to be aware of what it is they’re buying, where it’s come from and how it’s been sourced.
Socially responsible procurement
81 per cent of organisations have an internal or external mandate
to purchase from different types of certified sellers.
The main priorities that are mandated include:
While there’s an obvious temptation to opt for
lower-cost items, organisations need to be aware of what
it is they’re buying, where
it’s come from and how
it’s been sourced.
Socially responsible procurement
have an internal or external mandate to purchase from different types of certified sellers.
The main priorities that are mandated include:
According to the Amazon Business 2024 State of Procurement Report,
procurement professionals need to know:
According to the Amazon Business
2024 State of Procurement Report,
procurement professionals
need to know:
Procurement professionals looking to develop a responsible procurement
strategy need to define targets and policies, identify and select suppliers
and then measure and report their impact.
One easy way of doing this is to make use of solutions such as Amazon Business,
which can help organisations identify suppliers that meet particular criteria
and record spend so they can demonstrate progress.
Businesses can access over 550,000 products with the
Climate Pledge Friendly label from over 50 certifiers, including:
CLICK TO REVEAL
What industry leaders are saying
Procurement professionals looking to
develop a responsible procurement
strategy need to define targets and
policies, identify and select suppliers and
then measure and report their impact.
One easy way of doing this is to make use
of solutions such as Amazon Business,
which can help organisations identify suppliers
that meet particular criteria and record spend
so they can demonstrate progress.
Businesses can access over
550,000 products with the
Climate Pledge Friendly label
from over 50 certifiers, including:
McKinsey & Company research finds that, compared with their competitors,
organisations that implement responsible procurement see:
For more information on how Amazon Business can help
your business better position itself for the future
They can also mandate using particular supplier types, such as small businesses,
minority-owned organisations or those from the local area.
Such initiatives help organizations operate more responsibly and have bottom-line benefits.
McKinsey & Company research finds
that, compared with their competitors,
organisations that implement responsible procurement see:
For more information
on how Amazon Business
can help your business
better position itself
for the future
They can also mandate using particular supplier types, such as small businesses, minority-owned organisations or those from the local area.
Such initiatives help organizations operate more responsibly and have bottom-line benefits.
