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Many Supply Chain Managers Overlook Importance Of Adaptive Procurement Strategy

Procurement professionals face a number of challenges entering the new year, as customer demand, manufacturing centers, fulfillment models and volatile market conditions force companies to beef up their supply chain management.

However, a new report from software firm JDA shows how many companies are adhering to dated logistics and procurement models that work to limit profit and sales potential.

"Supply chain complexity has increased significantly over the last few years, yet many companies address their supply chain infrastructure - assets, people and technology - using a single approach based on costs or operational considerations," said Kelly Thomas, senior vice president of manufacturing at JDA.

This preempts the ability to address the changing needs of customers and unique value propositions, Thomas added. Successful companies will be able to meet the demands of a variety of customer segments without burdening costs throughout the supply chain.

This may necessitate a more diverse supply base to ensure sustainability. However, this same strategy can also rack up costs, so managers need to find some sort of balance in lower-tier diversity.

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