FPC of Raleigh

By 2027, half of organizations will support supplier contract negotiations with AI-enabled tools, according to Gartner. This shift promises to bring significant changes in how procurement teams operate. Recent insights from a Gartner survey of 101 procurement leaders highlight that sourcing and contract life cycle management is where generative artificial intelligence (GenAI) is expected to have the most impact over the next year. Here are some key points: ➡️ AI-driven contract risk analysis and editing tools will empower procurement teams by leveraging legal department guidance and previously agreed-upon terms. ➡️ AI will highlight potential risks and offer risk reduction options, speeding up the negotiation process. ➡️ With AI handling more tasks, procurement teams can focus on higher-value activities. Read more here: What are your thoughts on AI's role in procurement? How do you see it transforming your contract management processes? https://lnkd.in/eFjmF3zi #Procurement #ArtificialIntelligence #ContractManagement

What are the biggest hurdles to ensuring quality in procurement? Guaranteeing the quality of purchased goods and services is no easy feat in procurement. With numerous suppliers across various industries, evaluating quality can become a significant challenge. As outlined in this article, here are some of the biggest difficulties in assessing quality: 🎯 Lack of expertise: Industries like aerospace, pharmaceuticals, and IT come with intricate technical details that complicate assessment. Teaming up with field experts—internally or externally—can provide invaluable insights and improve decision-making. 🎯 Subjectivity: Different team members may have varying definitions of what "good quality" means. Setting clear evaluation criteria and fostering open discussions can harmonize these differences, resulting in a more unified approach. 🎯 Limited access to information: Without detailed production methods, material specifications, or quality checks, procurement officers face difficulties in making informed assessments. Encouraging transparency through clear communication channels and agreements can bridge this gap. 🎯 Inconsistent standards: Standards vary widely between industries and regions, making it difficult to set clear assessment criteria. To tackle this, officers can turn to international standards organizations and industry groups for guidance on quality norms and best practices. Learn more about these challenges and solutions in the article below. How do your teams handle these challenges? Feel free to share your thoughts in the comments. https://lnkd.in/eXgmqBjC #Procurement #QualityControl #SupplyChain

Do you know how critical managing supplier risk is for your business operations? This insightful article discusses the importance of a robust Supplier Risk Management (SRM) program. Here are the three main components that can help businesses mitigate potential risks and build stronger relationships with suppliers: 1) Supplier Segmentation ➡️ Categorize your supply base based on factors like type of goods/services, business volume, and risk. ➡️ Prioritize efforts on high-risk and critical suppliers to maximize ROI. 2) Supplier Qualification ➡️ Vet suppliers to ensure they meet specific requirements before any work begins. ➡️ High-risk suppliers require additional safety requirements and thresholds. 3) Ongoing Compliance Monitoring ➡️ Continuously monitor supplier performance to ensure ongoing compliance with your standards. ➡️ Implement regular reviews and audits to catch potential issues early. Check out the full article here to learn more: https://lnkd.in/e3iNPJTJ #SupplierManagement #SupplyChain #Procurement

Are bottlenecks in the supply chain holding your business back? It’s evident that global supply chains have faced unprecedented challenges since the onset of Covid-19. The World Trade Organization highlighted a 5.3% drop in trade volumes in 2020, underscoring how significant the disruption was. However, according to this article, there are innovative strategies to navigate these complexities: 🟢 Digital transformation: Embrace AI, IoT, and blockchain to predict disruptions and manage inventory in real-time. 🟢 Increased visibility: Utilize GPS trackers and RFID tags for transparency and proactive management. 🟢 Supplier diversification: Develop a multi-sourced supplier network to reduce over-dependence and mitigate risks. 🟢 Strategic stockpiling: Maintain strategic stockpiles to buffer against delays. 🟢 Reshoring: Bring production closer to consumption to reduce lead times and enhance control. 🟢 Focused collaboration: Build robust relationships across the supply chain to adapt seamlessly to changes. What strategies have you found effective in managing supply chain disruptions? https://lnkd.in/efy_Dy36 #SupplyChain #DigitalTransformation #Logistics

How can AI transform your supply chain management strategy? Developing a comprehensive implementation roadmap is essential for successful AI integration. Key components include: 🎯 Assessment & planning: Assess the current state of the supply chain and identify high-impact areas for AI implementation. 🎯 Technology infrastructure: Ensure the necessary infrastructure is in place to support AI. 🎯 Data quality: Establish robust data management processes to ensure the quality, reliability, and security of supply chain data. 🎯 Training & skills development: Equip teams with the necessary skills and knowledge for AI tools and platforms. 🎯 Scaling initiatives: Integrate AI initiatives into daily operations with purpose-built workflows for key roles like production planners and material buyers. 🔗 Read the full article: https://lnkd.in/e7BQ-Fmn #SupplyChainManagement #AI #Innovation

Have you ever wondered why some KPIs don't seem to work? 💡 As access to data has expanded, so has the use of KPIs across various interactions and processes. Procurement teams often use these metrics for areas like SRM, Category Management, and supplier segmentation, enabling them to showcase their positive impact on organizational strategy. However, many professionals argue that KPIs can sometimes miss the mark. Here are some common pitfalls: ▪️ Metrics are too vague, not aligning with strategic goals. ▪️ Overwhelming number of KPIs, bogging down key people in admin. ▪️ Measuring the wrong things. ▪️ Poor outputs or unusable data. ▪️ Complexity in data leading to it being ignored. ▪️ Lack of systems/tech to track performance. ▪️ Unclear purpose behind KPIs, causing disputes. This often turns KPI tracking into a bureaucratic exercise rather than a value-adding tool. But there's a way to change this. 🔑 The secret lies in crafting SMART KPIs—simple, straightforward, and effective metrics that provide actionable insights and align with business goals. By focusing on what truly matters, Procurement teams can set the standard for excellence and drive real-world impact. Want to dive deeper? Check out this insightful article: https://lnkd.in/eCHRMPFs #Procurement #KPIs #PerformanceManagement

Did you know that only 13% of companies can map their entire supply chain? Data sharing around sustainability initiatives remains a challenge. Nearly three-quarters of businesses can't see beyond their primary suppliers, missing opportunities to reduce empty miles and improve resource conservation. 📊 Research by Standard & Poor's reveals an even deeper issue: one in four companies deal with over 50 data silos. This fragmentation prevents departments like R&D, sales, marketing, finance, and distribution from accessing the same data simultaneously, hindering collaborative efforts. 🌍 With increasing climate regulations, it's crucial for supply chains to be proactive. Improved communication within and between organizations is key to addressing sustainability issues effectively and ensuring accurate reporting on efforts. Check out the full article here: https://lnkd.in/ezGjbc69 #SupplyChain #Sustainability #DataManagement

How can incorporating sustainability into your strategic sourcing process benefit your business? A well-structured strategic sourcing process improves margins, boosts resilience, and enhances ESG performance for the company and its suppliers. Incorporating sustainability as a core dimension in sourcing can act as a proxy for better vendor selection and more robust supply chain outcomes. Here are some key takeaways from this article: 🟢 Prioritize sustainable suppliers: Several companies now provide reliable ESG ratings for a fact-based evaluation to compare different suppliers. These ratings should be weighed against cost, service, and quality as part of the supplier selection criteria. 🟢 Encourage eco-friendly, waste-reducing packaging: Recent findings show that 57% of consumers are “less likely” to buy products in non-sustainable packaging. By encouraging potential suppliers to provide innovative and waste-reducing packaging in requests for proposals (RFPs), organizations can significantly decrease the environmental footprint of the products and services they procure—and often increase margin. 🟢 Favor energy-efficient products and services: Proactively selecting items that consume less energy creates a strong market demand for energy-efficient solutions. Embracing energy-efficient procurement delivers substantial economic benefits, resulting in cost savings, improved operational efficiency, and enhanced market positioning. 🟢 Drive overall decarbonization: Procurement organizations can incentivize suppliers to electrify their vehicle fleets and use solar power, thereby reducing carbon footprints and achieving energy cost savings. Approaches like Should-Carbon modeling help estimate carbon through various stages of the value chain. 🟢 Collaborate with external partners and report on progress: Collaboration with suppliers, industry associations, and other stakeholders can collectively address environmental challenges. This includes identifying areas for improvement, developing corrective action plans, and implementing measurable metrics for tracking progress and setting targets. Read more here: https://lnkd.in/e_vSBpht #Sustainability #Sourcing #SupplyChain

What are sustainable procurement practices? Sustainable procurement integrates Corporate Social Responsibility (CSR) into the supply chain, reducing environmental impact and promoting social good. It involves making ethical decisions that benefit stakeholders and society without harming the planet. This approach not only enhances a brand’s image but also aligns with consumer values. The benefits include: ✅ Legal compliance: For example, the USA Federal Acquisition Regulation Subpart 23.1 requires 95% of new government contracts to be environmentally and socially responsible. ✅ Risk mitigation: Ethical practices reduce dependence on depleting natural resources. ✅ Cost efficiency: Recycling and other sustainable methods optimize resource usage. ✅ Positive perception: Consumers view brands that consider their environmental impact more favourably. Although transitioning to sustainable procurement can be initially costly, it offers long-term savings and strengthens brand reputation. Explore more about sustainable procurement and its challenges: https://lnkd.in/ePW6aXxU #Sustainability #CSR #Procurement

How prepared is your supply chain to handle disruptions? Ensuring a resilient supply chain is essential for maintaining smooth operations and customer satisfaction. Here are several practical steps to consider: 🔹 Utilize AI: Use artificial intelligence to detect anomalies and predict disruptions before they happen. 🔹 Map your supply chain: Detailed tracking helps identify potential issues in advance. 🔹 Build strong supplier relationships: Regular communication with suppliers gives you better insight into their challenges and helps you adapt. 🔹 Maintain inventory buffers: Keeping extra inventory can mitigate the impact of delays. 🔹 Multisourcing: Diversify your supplier base to avoid reliance on a single source. 🔹 Use multiple shipping carriers: This reduces the risk of delays caused by any one carrier. For more detailed strategies, check out this helpful article from SCM Dojo: What strategies are you using to strengthen your supply chain? https://lnkd.in/gDXw5Hk9 #SupplyChain #AI #Sourcing