The most costly disruptions are overlooked by procurement
In a presentation at the Procurement Leaders Americas Congress Tom Seal discussed micro-risks, the low impact risks which are often missed but can accumulate to cost the business. New research from Procurement Leaders shows that 56% of annual losses are defined by buyers as ’low impact’, which represents an average of 0.28% yearly spend. A cost not to be sniffed at.
As much as 15% of indirect spend is made up of ‘maverick’ purchases
Procurement cannot seem to tame its tail spend and that is not only proving problematic for strategic sourcing, but is leaving a massive dent in budgets. For all the technology offerings and talk of procurement’s increasing influence, the question remains why does this persist as such a significant challenge for what should be sophisticated organisations?
Upward pressures on trading platform prices
The economic strain being put on banks by regulators is now extending into important areas of supply, including front-office trading technology. In anticipation of further closures and consolidations among customers, the likes of Fidessa are re-organising sales and marketing efforts around a smaller number of more profitable customers.
Procurement Leaders members can download the latest research into the trading platforms market here.
Digital progression a growing challenge for procurement
Digital marketing spend is becoming increasingly complex to manage with new suppliers entering the market on a daily basis. Between January 2014 and January 2015, the number of digital marketing suppliers doubled worldwide, growing from 947 suppliers to 1,876, according to Scott Brinker, editor of the Chief Marketing Technologist blog.
The ISIS supply chain is spread across the globe
A study mandated by the European Union and carried out by Conflict Armament Research (CAR) has found that 51 companies from 20 different countries sold or received more than 700 components used by the terrorist organisation ISIS, which controls large parts of Syria and Iraq, to build improvised explosive devices (IEDs).
James Bevan, CAR’s executive director, said that this suggested a lack of oversight in the supply chain and called on businesses to do more to understand where their goods are going.
"These findings support growing international awareness that IS forces in Iraq and Syria are very much self-sustaining — acquiring weapons and strategic goods, such as IED components, locally and with ease," he said. "Companies having effective accounting systems to establish where the goods went after them would act as a deterrent."
Diversity challenges drawing more on consulting spend
A recent BrightHR survey of business consultants found that growing diversity in the workplace, with employees from different generations, gender groups and cultures increasingly working together, was proving to be one of the biggest challenges faced by their clients today. The survey revealed that 78% of consultants themselves are also uneasy about future changes in the workplace, with diversity of the workforce, cited by 44% of respondents, and technology, cited by 34%, highlighted as the most important issues.
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This article is a piece of independent writing by a member of Procurement Leaders’ content team.