Half of firms may overhaul entire procurement strategy

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Half of firms may overhaul entire procurement strategy

June 19, 2020 · posted by Will Green and Marino Donati in Procurement – cips.org

Almost half (48%) of firms globally will overhaul their entire procurement and supply chain strategy in the case of a prolonged Covid-19 crisis, according to a survey.

The global survey of around 400 procurement, supply chain and operations executives – by consultancy Kearney in collaboration with the World Economic Forum – found 44% were adapting transportation methods to ensure continuity of supply while 40% were prioritising orders for critical facilities and vulnerable customers.

The poll – which examined supply chain resiliency – found nearly two-thirds (63%) of executives in the UK scored their organisations just 4.8 out of 10 for adaptation.

Nigel Pekenc, principal at Kearney, told SM the results suggested the pandemic would accelerate ongoing initiatives around increased supply chain resilience and new technologies. These included multi sourcing from different regions and continents and localising and shortening supply chains…

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