Supply Chain Risk & Poor Procurement Performance

Why Supply Chain need its own Vision & Mission?

Most of the Companies Overall Vision and Mission is defined and the same vision and mission is directive for their Supply Chain functions also. But the organisation who stands out from the crowd have specified vision and mission for their Supply chain functions. The foremost action to minimise Supply Chain Risk is define specified vision and mission for Supply chain function.

Defining what supply chain management is for our company is key to writing the right job description and attracting the right talent in the domain.

Higher-level compliance can increase supply chain performance and profitability, which comes at a cost. Companies view this as a cost center and try to cut the cost which increased risk in Supply Chain.

Managing cost of Inbound freight is often neglected by many companies, consequently creating difficulties for an organization to gain visibility and implementation of a comprehensive plan. A well-crafted inbound freight management program will put cost controls in place through vendor compliance.

Adaption of new technologies to increase supply chain efficiency is often of less priority for many organisation. Reverse logistics is also overlooked which in long run negatively impacts company’s credibility.

Procurement Risk – navigate through Procurement Challenge

Risk taking is essential for success in our life. But in procurement no one would like to let the risk jeopardise the smoothly functioning of the procurement system. A smoothly functioning procurement process is always desirable to be standardised and dependable.

So it is one of the important task of procurement team to reduce procurement risk.

Procurement performance is not only measured with cost control but how is it aligned with organisations broader goals. Modern businesses are operating globally with rapid pace than ever before. Now Businesses giving more priorities to solve procurement problems which are broadly inefficient needs analysis, maverick spend control, long and ineffective processes and talent shortage.

This post from frevvo describes 6 procurement problems –

1. (1) Poor internal needs analysis
2. (2) Vendor selection and management
3. (3) Corporate Social Responsibility (CSR)
4. (4) Maverick purchasing
5. (5) Lengthy processes & inaccurate Data
6. (6) Talent shortage