Procurement’s priorities are driven by two separate but related sets of factors: internal business requirements and external market conditions.
The Art of Procurement and Ivalua has partnered with a report to look at some of the challenges resulting from inflationary conditions. It explores how working collaboratively with suppliers may open the door to operational efficiency and greater control over the supply chain.
“Inflation is currently running at a four-decade high. It is also systemic and likely to be sustained for some time, potentially leading several countries into recession. As a result, procurement will have to manage budgetary constraints and supplier performance at the same time – potentially by leaning on one to solve the other,” the report states.
The report offers procurement teams strategies to ‘blunt the effects of inflation’ including:
- Combating the effects of inflation at the category level
- paying it forward with better managed working capital
- managing inventory, orders, and demand
