Procurement to Lead Innovation and Value Capture While Coping With Inflation, Shortages and Geopolitical Instability

Authors

  • Solomon Kyalo Mutangili

DOI:

https://doi.org/10.53819/81018102t2177

Abstract

In today's complex and volatile business landscape, organizations are increasingly confronted with the daunting challenges of inflation, supply shortages, and geopolitical instability. These disruptive forces have far-reaching implications, affecting global supply chains and impeding sustainable growth. Consequently, procurement, traditionally seen as a cost-focused function, has now emerged as a strategic enabler for organizations to navigate these multifaceted challenges while driving innovation and value creation. This literature-based study delves into the evolving role of procurement in times of economic uncertainties, aiming to explore the strategies adopted by leading organizations to tackle inflation, shortages, and geopolitical risks while fostering innovation and capturing tangible value. The research synthesizes an extensive range of scholarly articles, case studies, and reports from various industries and sectors, spanning the last decade. The study reveals that successful organizations have shifted their procurement paradigms from traditional cost-cutting measures to a value-driven approach. They emphasize strategic collaborations with suppliers, harnessing technology and data analytics, and developing agile sourcing strategies. Leading procurement practitioners integrate geopolitical risk assessments and scenario planning into their decision-making processes, enabling them to mitigate vulnerabilities effectively and capitalize on emerging opportunities. In conclusion, this literature-based study emphasizes the transformative potential of procurement as a strategic function capable of steering organizations through economic turmoil and fostering innovation. By embracing modern procurement practices, businesses can not only navigate the challenges posed by inflation, shortages, and geopolitical instability but also harness these dynamics to create a resilient, value-centric, and sustainable future

References

Barratt, M., & Oke, A. (2019). Managing Supplier Relationships in Volatile Times: A Comparative Case Study. International Journal of Operations & Production Management, 39(2), 197-219.

Ellis, R., & Adams, D. (2021). Procurement transformation: A guide to driving innovation and value in procurement. Kogan Page Publishers.

Harvard Business Review. (2019). Procurement 4.0: Are You Ready for the Digital Age?

Huang, Y., & Ke, C. (2020). Enhancing Supply Chain Resilience through Supplier Relationship Management and Supplier Selection: Empirical Evidence from the Manufacturing Sector. International Journal of Production Economics, 229, 107787.

Kennedy, W. J., & Sohail, M. S. (2019). Procurement Analytics: A Dynamic Pricing Approach for Negotiation under Inflation. International Journal of Production Research, 57(7), 2180-2198.

Krause, D., Scannell, T., & Calantone, R. (2022). Leveraging supplier-enabled innovation for competitive advantage. Journal of Product Innovation Management, 39(1), 114-129.

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Sankar, M. (2020). Driving Innovation Through Supplier Integration: A Study of Supplier Innovation in New Product Development. Journal of Product Innovation Management, 37(1), 133-151.

O'Meara, P., & Singh, A. (2018). Procurement strategies to mitigate the impact of inflation on supply chains. International Journal of Production Economics, 197, 339-351.

PwC. (2022). Global Procurement Survey: Navigating geopolitical risks in procurement.

Simchi-Levi, D. (2020). Supply chain analytics: Best practices. INFORMS Journal on Applied Analytics, 50(4), 251-265.

Stevenson, M., & Spring, M. (2019). Supply chain visibility: The theory and practice of managing the end-to-end supply chain. Kogan Page Publishers.

Trent, R., & Monczka, R. (2019). Transforming Procurement into a Competitive Advantage. Harvard Business Review, 97(5), 104-112.

Verma, R., & Alwert, K. (2020). A review of geopolitical risks in global supply chains: The drivers, enablers, and mitigation strategies. International Journal of Production Economics, 223, 107532.

World Economic Forum. (2021). Supply Chain Resilience: A Framework for Understanding and Mitigating Risk.

Wu, D., & Pagell, M. (2021). Coping with supply shortages: Strategic buyer-supplier relationships and financial performance. Journal of Operations Management, 72, 1-17.

Downloads

Published

2023-07-27

How to Cite

Mutangili, S. K. (2023). Procurement to Lead Innovation and Value Capture While Coping With Inflation, Shortages and Geopolitical Instability. Journal of Procurement & Supply Chain, 7(1), 106–115. https://doi.org/10.53819/81018102t2177

Issue

Section

Articles

Most read articles by the same author(s)

1 2 3 > >>