Businesses today face mounting pressures — from supply chain disruptions to consumer demands for sustainability. With over 90% of procurement leaders predicting greater complexity ahead, it’s clear the game has changed.
How can businesses adapt to this new era of procurement? The answer lies in advanced technologies like AI, unified platforms and democratized data. These tools empower companies to gain visibility, improve decision-making, and drive sustainability.
This podcast, based on a GEP white paper, unpacks key insights and reveals how procurement is evolving into a strategic driver of change.
What You’ll Hear:
- How generative AI and low-code platforms are revolutionizing procurement
- Unified solutions eliminate blind spots in your supply chain
- Technology helps businesses align profitability with environmental responsibility
PODCAST SUMMARY
In this engaging podcast, the hosts unpack insights from GEP’s white paper, Rethinking Direct Material Sourcing, highlighting how businesses are transforming procurement practices through technology and innovation. Direct material sourcing, traditionally focused on cost-cutting, is evolving into a more complex and strategic function that balances cost, risk, and sustainability.
The Shifting Landscape of Procurement
The discussion begins with a look at the growing pressures on procurement leaders. Traditionally, the goal was simple: secure the lowest price. However, recent supply chain disruptions have underscored the dangers of single-source dependency. As sustainability and ethical sourcing become priorities, procurement is no longer just about savings—it’s a balancing act of managing costs, mitigating risks, and meeting consumer expectations. According to Gartner, over 90% of procurement leaders believe these challenges will only intensify.
The Role of Advanced Technologies
Advanced technologies like artificial intelligence (AI) are revolutionizing procurement by providing smarter tools for sourcing strategies. The white paper highlights generative AI as a game-changer, capable of analyzing vast data sets to predict market trends, weather patterns, and geopolitical risks. For example, a clothing company sourcing cotton could use AI to anticipate price fluctuations and select the best suppliers.
The democratization of data is also enabling smaller businesses to leverage these tools. Low-code and no-code platforms are making it easier for non-technical users to build custom applications for tasks like tracking shipments or finding sustainable suppliers. These technologies level the playing field, allowing companies of all sizes to enhance efficiency and transparency.
Addressing Visibility Gaps
A recurring theme is the issue of visibility in supply chains. Many companies lack insight into their extended supply chain, leading to ethical or environmental risks. Unified solutions, likened to a “control tower” for supply chains, integrate supplier data, contracts, and real-time tracking into a single platform. This end-to-end visibility not only helps companies react faster to disruptions but also supports better decision-making around sustainability and cost-efficiency.
Sustainability as a Strategic Priority
Sustainability is no longer optional for businesses. Unified solutions provide dashboards that calculate the carbon footprint of shipments, empowering companies to prioritize environmentally friendly suppliers. By integrating transparency and accountability into their operations, businesses can improve their environmental impact while meeting consumer demands for ethical practices.
Empowering Procurement Professionals
The podcast emphasizes that technology isn’t replacing humans; it’s empowering them. Procurement professionals can shift from transactional roles to strategic advisors, using data insights to uncover opportunities and drive sustainability. This partnership between people and technology creates a future where procurement is more ethical, transparent, and efficient.
Conclusion
The podcast concludes by framing procurement as a powerful tool for change. Through technology, transparency, and collaboration, businesses can meet rising consumer expectations while achieving profitability and sustainability goals. The hosts encourage listeners to think about the journey their products take and to demand more from the companies they support.