A constantly changing economic and political landscape, not to mention continuous innovations in technology and severe climate changes, has increased the complexity of the procurement function.
There are multitudes of objectives that procurement teams must meet: maintaining stock levels, keeping track of direct and indirect supplier contracts and overcoming unforeseen scenarios while maintaining the flow of the business. Disruptions are so easy to come by these days that procurement teams must be flexible and adaptable in providing solutions to problems that were impossible to forecast.
Procurement is a crucial part of a company’s business strategy today. A modern procurement function that can rapidly overcome challenges, maintain agility and maintain the flow of business is an integral part to remaining competitive in the market place. This is what it means to have a modern procurement function.
Imagine the procurement department as sort of an airplane pilot. To fly and land a plane, several levers must be operated. Passengers must feel safe and the plane must get from Point A to Point B seamlessly. In an article for KPMG, author Andrew Sawers, editor at Procurement Leaders, offers insight in which levers must be pulled so that procurement can survive the issues plaguing companies today.