Procurement professionals today navigate a landscape filled with uncertainty, where disruptions can emerge from various sources— from piracy and cybercrime to natural disasters and labor disputes.
For example, participants in APQC’s recent research on direct and indirect procurement said that their three most significant challenges are:
- Shortages/delays in raw materials (47% of respondents)
- Cybersecurity risks (40%)
- Complexity in data management (34%).
These unpredictable elements pose constant challenges to supply chains, making flexibility a critical focus for procurement professionals. Adapting and responding effectively to these threats is essential for success in this evolving environment.
While many external challenges are out of a procurement leader’s control, APQC recommends focusing on those that you can control in procurement, such as how you approach and measure the success of your supplier relationships.
To gain insights that help evaluate supplier performance in some of the most critical areas, a large majority of organizations track supplier responsiveness, on-time delivery, and quality. To gain the leading edge and deepen relationships with suppliers, APQC recommends additional measures to examine and where organizations focus in direct and indirect procurement in Advice to Procurement Leaders: Focus on What You Can Control.