Top 5 global procurement trends are not practised as they should be

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IanRussell.jpgThe way procurement and supply chain professionals are currently 'trending' leaves a great deal to be desired, Ian Russell, Head of Commercial at SAB Miller, told delegates at November's Smart Procurement World conference…

What should be the top five global trends in procurement, according to Russell?

  1. Holistic, value-based cost management.
  2. Talent nurturing and development.
  3. End-to-end, sustainable supply chain development.
  4. Structured supply chain risk management.
  5. Deep supplier relationship management.

What are the actual top five Global Trends in Procurement?

1. Holistic, value-based cost management
“Let’s focus on the low-hanging fruit and dash for the cash.”

[While quick-wins are a great way to show the Board you’re making progress and maintain its support, you won’t derive greater value from the majority of your spend by riding the easy-pickings wave – Ed.]

2. Talent nurturing and development
“Aggressive, incestuous poaching of ‘plug & play resources’, with little structured development of incumbents.”

[You might get away with this in the short-term, but when your newly-poached Commodity Specialist gets a better offer and feels no loyalty to you, or has not shared any knowledge, you’ll be without a paddle – Ed.]

3. End-to-end, sustainable supply chain development
“Basic monitoring of CO2 emissions, et al, to satisfy the press and the regulator.”

[When it comes to regulations and responsibilities, box-ticking without wrapping your mind around the issues in question is a sure-fire way to create an ‘obligation mentality’, preventing you from seeing the opportunities that may be generated – Ed.]

4. Structured supply chain risk management
“Let’s make a plan if something goes pear-shaped.”

[Disaster recovery and risk management are not the same thing – Ed.]

5. Deep supplier relationship management
“Lunch sounds good…”

[A supplier looking for a free lunch is not a supplier who will sign up for the long-haul in difficult times, who is comfortable sharing her cost structure and profit margins with you, and who understands that it’s supply chains that compete against each other, rather than products – Ed.]

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