2Sustain

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.

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I just had the pleasure of participating on a conference call with Tim Cummins of the IACCM (International Association for Contract & Commercial Management ).  Tim is one of the most knowledgeable, thoughtful and articulate guys out there when it comes to the myriad of issues facing 21st century supply management and contracting professionals. Tim and I spoke at length about the complex new world of supply chain management in the face of globalization, increased regulation, distributed supply chains, and the resulting new risk factors that must be managed by 21st century executives. In particular we focused in on the reputational risks companies face if they get it wrong – as well as the benefits if they get it right.

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