Are Unimaginative Procurement Functions Stagnating Supplychains?

We're living in unprecedented times but shouldn't this be exactly when we look at new ways of doing things? Arguably the impact of some of the problems through the pandemic and recent geopolitical situations have been heightened by past complacency.

Should we have rising prices due to concentration of suppliers across the globe? Why has supplychain diversity not been maintained? 

Partly due to other priorities,  partly complacency and partly lack of dynamic. Especially in some governments.

But those same issues reside in more micro environments and I'm talking about buyer,  vendor or procurement teams. The title doesn't matter, the function very much does!! 

These teams control the flow of goods and services to keep business selling profitably. But often they don't see themselves as agents of strategic change.

As such they'll maintain the status quo. Even although every day they are observing innovation,  market dynamics and opportunities for cost and other efficiencies.

Observing but are they seeing them? Are they translating into business value? Unfortunately no matter that they could take hold of this and influence major positive change,  there's a tendency to stick to the buyer playbook of price focus as priority. Despite the huge amount of other business benefit which could be realised.

This is not down to the individuals, often they've not got the empowerment to turn those data into transformative plans. It's about leadership. An environment of positive encouragement and empowerment which underpins the search for increasing benefit.

An approach which looks at how with partner suppliers,  cost can be cut and innovation,  profitability and brand can be increased.

Sure it may mean a mix of skillsets, augmentation of traditional buyer with commercial and innovative leadership. Focused on building propositions with suppliers to enhance competitiveness and profitability of the business.

It's a simple fact that by choosing dynamic suppliers or encouraging different ways of working with suppliers,  the supplychain will be slicker and more transformational.

After all if the procurement teams are not more diverse and demanding,  then why should the supplier change?

All you have then is stagnation and of continued eventually non existence. By taking the lead, you bring freshness, influence and effectively create a thriving ecosystem.

Still think the buyer function is only that?