Procurement

A future of resilience and integration | Knowledge Pills

Procurement

A future of resilience and integration | Knowledge Pills

Companies have for years applied a procurement strategy progressively centered on optimizing supply chains for efficiency and cost reduction with excellent results in many cases.

This strategy was set on the basis of increasingly asymmetric parameters such as price pressure, inventory reduction, and supplier alignment on the buying company's production plans from a Just-in-Time perspective, but always without visibility and sharing of relevant information with the supplier.

As supplier networks have become more complex in terms of geographic distribution and interconnection, it has generated a system whose fragility was brought to light by the COVID-19 pandemic, a true Stress Test that highlighted the nature of the problem: companies have tended to neglect to organize their supply chains according to a principle of resilience, that is, capable of withstanding traumatic and unexpected events or even just significant market fluctuations.

Source: Centro Studi Bonfiglioli Consulting - Valcon Survey (member firm of Cordence Worldwide) - DILF Danish Purchasing and Logistics Forum on 95 European companies

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