Tag Archives: supplier risk

6 Ways To Keep Supply Chain On The Executive Agenda

Supply chain is firmly on the executive agenda (at last!). But how can we keep our seat at the table? Procurious talks to Kearney partner Kate Hart about the burning issues in supply chain – from attracting new talent to co-creating with suppliers.


Supply chain is firmly on the executive agenda (at last!). But how can we keep our seat at the table? 

Procurious Founder Tania Seary recently sat down with Kate Hart, Partner at consulting firm Kearney, to talk about the state of supply chain and what’s coming.



Change, pivot, attract

Supply chain management is increasingly about dealing with disruption, says Kate.

“Recent events have highlighted how susceptible our global supply chains are to disruption, from the pandemic to ransomware attacks to global trade wars,” Kate explains.

So how do we cope? It all comes down to two critical capabilities.

The first is the ability to sense the changing environment and pivot. And the second is the ability to attract and retain core talent. 

That need hasn’t changed for a decade, says Kate. So why is it worth mentioning now? 

“What it means today is very different to what it meant 10 years ago in regards to the importance of being able to sense a change environment and pivot,” Kate says.

That’s because the demands on supply chain professionals have changed dramatically – and certain industries adapt quicker than others.

“Some global geographies are a lot more mature than others so far as their uptake of e-commerce and some geographies have really been lagging,” Kate says. 

Why technology means survival

If retailers were hesitant to adopt new technology, they have an extra incentive now. It’s their key to survival.  

“Amazon has been a trigger for some of those geographies to uptake, but obviously the pandemic has just increased the proliferation of retailers offering e-commerce platforms,” says Kate.

Companies are also becoming more innovative in the way they handle the actual distribution of their supply chains, particularly in the business-to-consumer route.  

“We’ve seen a proliferation of sort of rideshare ‘uberisation’ of that last mile,” Kate says.

“What we’re seeing is those companies that invested in the technology and got ahead of the game really have thrived during this. Now it’s going to be a matter of, you know, catch up or who survives, so it’s going to be quite interesting.”

Understanding the risk

So what are smart companies doing now to avoid future disruption? Supply chain network mapping.

Kate has seen a huge influx of companies not just looking at supplier risk, but looking at suppliers’ suppliers risk and building that information through their supply chains.

Interestingly, this is largely driven by senior executive interest. Never before has supply chain resilience enjoyed such a prominent position on the c-suite agenda.

“It’s beyond just enterprise risk. There is reputational risk, there is financial risk, there are lots of different risks that are inherent in the supply chain and that is very much front and centre in many of our board conversations at the moment,” Kate says.

“The key question that we’re getting asked by boards is how they get visibility in their end-to-end supply chain risk and how they manage that resilience.”

Making it automatic

Companies are also investing more heavily in automation to improve resilience.

‘It’s been quite extraordinary. Some global areas, particularly in the US and in the UK, are seeing a lot of advantage from automation,” Kate says.

“But the investment in automation needs to be deliberate, with a very sound business case, otherwise organisations are investing but not necessarily seeing returns in some areas.”

Technology, like automation, is providing supply chain teams with new levels of influence, Kate says. 

“We’re seeing supply chain organisations use digital tools to create a triage process with a front door to supply chain – a self-service functionality,” Kate explains.

“[It] enables their internal talent team to then work with their business stakeholders to drive extraordinary value.

“So, supply chain is really being impacted positively by digitisation and automation. It’s all part of a focus on resilience which elevates the conversations and, in turn, the value that supply chain can deliver.”

Working as partners

That’s why Kate says the future will be all about human decisions facilitated by technology.

“What does that mean for partnerships across your supply chain?” Kate asks. “It means that the problems that need to be solved are increasingly complex. It requires a very strategic view of your supplier base.”

The strategic view increasingly means changing the relationship to a close partnership.

“In some of the scenarios that we’re working on at the moment, the clients don’t know what the solution is and actually need to engage the suppliers to co-create solutions for problems that are new to both of them,” Kate says. 

That means seeing suppliers as extensions of your own organisation, which is positive.

But as Kate points out, companies still need to maintain “control and visibility so you are not anchored to them in perpetuity. So getting that balance of control versus collaboration right is going to be really, really important.”

The right people

As Kate puts it, the bright future of procurement isn’t possible without the right people.

“All of that is very contingent on the ability to attract, retain, and grow talent – the conundrum of supply chain management for aeons,” Kate says.

“But never is it more important than now. For supply chain management to have a seat at the table it needs to be attracting the core talent that we’re seeing coming out of the universities.

“There needs to be a very strong talent pool that’s feeding into the industry.”

Kate Hart – Partner at consulting firm Kearney, overseeing the supply chain practise within Asia Pacific – can be heard in the webcast series The Future Of Supply Chain Now.

Supply chains are changing. Here are 5 things we know now.

Procurement’s Time To Lead Is Now. Here’s How to Take Advantage.

A new survey of 500+ professionals reveals where procurement must focus to establish leadership and earn executive trust.


Procurement: it’s your time to lead. New research from Procurious and Coupa, released today, reveals that nearly two thirds of professionals have seen trust increase with the c-suite over the past three months. Similarly, more procurement leaders report having a seat at the executive table today compared to May, when we asked the same question as part of our Supply Chain Confidence Index.

“Procurement leaders continue to step up and executives are taking notice,” said Tania Seary, Founding Chairman of Procurious. “Procurement plays a critical role in navigating the uncertainty we face today. The function’s stellar performance opens the door for more – more recognition, trust, and opportunities to lead. It’s time to take advantage.”

Procurious and Coupa surveyed over 500 procurement and supply chain professionals in July to assess the state of the function and what’s on tap for the second half of 2020. Reflecting on procurement’s strategic position within the organisation, just one-fifth (21%) report that they are still being viewed tactically internally. While that number is still higher than we’d like, most would agree that for a function that’s historically struggled to stand out and get the recognition it deserves, we’re moving in the right direction – in a big way. Consider that over the past three months, only 7% said they did not see trust increase between procurement and the c-suite.

“Procurement today has a clear opportunity to capture our seat at the table. The findings of this survey highlight how important it is for us to think strategically and ensure our objectives are aligned to the board and our peers in the c-suite,” said Michael Van-Keulen, CPO, Coupa. “We must step up to help our organizations not only control costs, but also mitigate risk, maximize value, and increase the agility needed in today’s business environment.”

These results build off Procurious’ research findings from earlier this year. “In June, we uncovered clear indicators that the c-suite was paying more attention to procurement and supply chain. This trend is accelerating as executives recognise procurement’s unique and essential position in the ongoing recovery,” said Seary.

Procurement leaders looking to capitalise on this newfound opportunity should focus on delivering results that increase resiliency and continuity, and improve the bottom line. According to our research, the top three areas the c-suite wants procurement to contribute to are mitigating supply risk (70%), containing costs (69%) and driving business continuity (64%).

“At first glance, we’re seeing a back-to-the-basics approach for procurement teams, with a laser focus on savings, spend visibility, resilience and risk mitigation. However, when you step back you quickly realise this approach is anything but traditional. The desired outcomes may be similar, but companies are investing more strategically, aggressively and intentionally,” commented Seary.

Second Half Procurement Priorities: Controlling Costs and Risk 

Procurement’s top three priorities for the second half of 2020 are similar to what we referenced above: containing costs, mitigating supply chain risk, and supplying the products and services needed to maintain operations.

Naturally, managing supply chain risk remains front and center for organisations across the world. But risk takes on many different forms. What are executive teams most concerned about right now? The top five areas, in order of concern, are:

·       Operational risk

·       Supplier Risk

·       Business environment risk

·       Reputational risk

·       Cyber risk

Interestingly, the most prominent risk differs geographically. In North America and Asia Pacific, executives are most concerned about cyber. In Europe, the primary concern is operational risk. Either way, stronger investments in supply chain risk management will undoubtedly become one of the lasting marks of COVID-19. Mature procurement teams will never take supplier health, collaboration and risk lightly again.

When it comes to business risk, there’s often more than meets the eye. The survey also found that more than 80% of organisations have significant gaps in spend visibility, which is its own risk. This finding poses an important question: How can procurement teams lead and control supplier risk if they lack full visibility into where money is being spent?

Equipping Procurement to Lead and Thrive

Looking at the next 6 – 12 months, economic uncertainty was the number one concern for survey respondents, followed by cash and risk. Given the stakes – and procurement’s proven ability to add value in business-critical areas, including risk, resiliency, and cost containment – the majority of organisations (93%) are investing big to propel procurement forward. The top three investments organisations are making in procurement leadership are:

·       Data and analytics

·       Talent development

·       Technology

“COVID-19 continues to act as an accelerant for procurement transformation. The business case is right in front of us, and organisations are investing accordingly.” said Seary. 

While organisations are finally stepping up to fund procurement initiatives, the function still has an important role to play to shape the future. 

“We need to ensure the investments are strategic, and not tactical. We need to set the agenda, and ensure the c-suite’s vision for procurement is aligned with what we know is possible. It’s our time to lead, and we need to do it right,” said Seary.For more insights – including details on procurement priorities, operational gaps, investment strategy, supply chain risk and more, join Procurious and get the full report: Procurement’s Time to Lead.