With most parts of the world in varying degrees of lockdown and the movement of goods and people remaining limited, the operating models of most companies have experienced extreme strain. Shocks to supply and demand as a result of extreme market volatility have threatened business continuity, introduced new risks and added further inefficiencies to operations culminating in increased costs.
Indeed, 44% of executives attending a recent executive Dupont Sustainable Solutions (DSS) webinar indicated that achieving continuity and sustainability of their operations is now their top priority. This was followed by the need to reduce costs (27%) and improve operational efficiency (19%). Focusing on these three priorities highlights the desire by organisations to drive sustainable improvements to their business beyond ad-hoc cost savings and quick wins.
One tool organizations can use to achieve such longer term objectives is to adopt a Strategic Sourcing approach. Strategic Sourcing acts as a highly customised and effective lever for organisations to minimize supply chain risk by securing goods & services and optimizing spend. By adopting such a true Total Cost of Ownership (TCO) approach they can reduce operational risk, enhance operational efficiency and drive sustainability.