A.T. Kearney Study Finds Procurement Leaders Excel at Risk Management and Sustainability
Two things jumped out at me while I was reviewing the results of A.T. Kearney’s recently released 2008 Assessment of Excellence in Procurement (AEP) study.
First, the study found that procurement leaders are placing a high priority on risk management. Whether they’re using internal risk mitigation strategies or mega-trend analysis, AEP leaders seem to agree that supply risk and performance management are becoming increasingly critical in today’s complex global supply chains.
Second, this latest A. T. Kearney analysis also shows that sustainability has emerged as a hallmark of procurement excellence. A whopping 89% of AEP leaders have procurement sustainability plans in place; many have comprehensive sustainability programs that are integrated into their overall corporate strategy.
This new emphasis on risk management and sustainability confirms trends that I have been seeing for awhile now. Even a few short years ago, concerns like these may not have been high on the corporate agenda. But now, in light of factors such as the new economic environment, increased globalization, and potential climate change regulations, it makes sense that leading companies are rethinking their sourcing strategies to ensure continued success.
Where does your organization stand on these issues? Do you have the skills requires to incorporate risk management and sustainability initiatives across your supply chain? If not, it’s time to advance in these areas. As Bill DuBois wrote earlier this week in his post “What’s the Next Supply Chain Disaster?” “complacency is recipe for disaster.” Most likely, what worked a few years ago isn’t the solution you need going forward. Today’s procurement demands approaches that are more creative, holistic, and collaborative than ever before.
For more discussion on the AEP study, see the excellent article, “In Pursuit of Procurement Excellence,” in the May/June 2009 issue of Supply Chain Management Review. It’s an in-depth Q&A interview with Randy Watson, co-director of the study. He’s a partner in A.T. Kearney’s Atlanta office and 12-year veteran of the firm.
