The Sustainable Supply Chain in Recovery

Seen as the savior for many organizations over the last few years, the Procurement function could now be taking on a new roll in a recovering economy.  The days of drastic cost reduction will likely be replaced with actions to rebuild and strengthen the supply chain.  This 180 degree shift in focus toward long-term sustainable supply chain development does present a unique set of challenges. 

Sustainable supply chain management as a strategic function within the company has proven to be both a value opportunity and a significant obstacle for developing and recovering organizations.  Charged, aligned, and staffed to reduce cost and inventory over the last few years, procurement organizations will now focus efforts on reestablishing and repairing their strained relationships.    The first step in this transformation will be to identify the change management obstacles facing existing structures.  In discussions with Procurement leaders around the globe, the Procurement Strategy Council reports on some of the most pressing sustainable supply chain challenges facing Procurement organizations today, as described by Procurement executives:   •    Changing Business Needs: While business partners were focused on survival in 2009, they appear to be losing cost discipline as the recession fades into memory.  Procurement must prepare for the shift in priorities and align itself with the new imperatives. •    Long-Term Value: Category managers tend to create strategies that deliver incremental value through tried and tested short term strategies; they are less comfortable when asked to embrace big, bold ideas. •    Supplier Relationships: Supplier performance standards have been on the decline for the last couple of years and vendors have been slow to follow through on their promises to delight customers. Click here to continue reading.   

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