Procurement to Lead Innovation and Value Capture While Coping With Inflation, Shortages and Geopolitical Instability
DOI:
https://doi.org/10.53819/81018102t2177Abstract
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
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