Three new forces facing procurement teams will be put under the microscope at the Procurement and Supply Australasia (PASA) Annual Conference, Premier Confex, 12-13 October in Melbourne.
Leading CPOs from across the region met on the Gold Coast at the PASA CPO Exchange this month. The consensus from the group after two days of round table discussions is one that ESG, inflation and globalisation are all key issues as businesses try to carve a path after the pandemic.
Procurement Professionals can hear first hand and in person what is being done to tackle these issues at Premier Confex at Flemington Racecourse Conference Centre.
Hear about what’s coming up
PASA CEO Jonathan Dutton previews Premier Confex 2022.
Joining the keynote line-up of thought-leadership contributions is one of the country’s leading economists, Robert Gottleibsen, a regular columnist to the the Australian newspaper, plus Bain & Co (which acquired ArcBlue & Proxima this year. Reserve your free ticket.
Environmental, social and governance factors (ESG)
As much broader ESG considerations have replaced the narrower CSR (corporate social responsibility) questions, organisations both large and small have looked to the supply-side to manage their obligations – both mandatory and self-imposed.
ESG considerations are becoming a prerequisite for business, before even discussing the numbers with any vendor. It was one of the heavily debated topics at the CPO Exchange.
Yet with such a broad agenda, how can organisations ever do enough to ensure stakeholders let them keep their social licence to operate? What can realistically be achieved through procurement alone? And how do buyers prioritise so many worthy initiatives? Can ESG be a primary Procurement deliverable to replace diminishing savings?
Inflation is shirt fronting every procurement team in our region.
As inflation rates in mid-2022 pass around 9% in the UK, USA and New Zealand, and also escalate significantly in Australia – CFOs face the prospect of mathematically doubling relative cost (and halving purchasing power) within 10 years or less at these rates.
Moreover, with the nature of current inflation being “COST-PLUS” orientated, maybe the ‘C’ suite might imagine that procurement could have a disproportionate influence in mitigating the effects of high inflation for their organisation?
And, if inflation is soaring in more advanced economies, is it possible to source more aggressively from other countries less affected by inflation? Reserve ticket.
Deglobalisation is a gradual process of diminishing interdependence between countries around the world, largely through declining economic trade and investment and exacerbated, or even caused, by the myriad of forces listed above.
This trend has notably accelerated through the pandemic as supply chain bottlenecks have become so apparent and, more recently, the effects of the war in Ukraine have spread globally at the same time as economic issues like inflation and commodity shortages have become more pronounced.