According to The Hackett Group’s 2021 Key Issues Study, spend cost reduction is
firmly back at the top of the procurement agenda (see “Procurement key issues
in 2021” on the next page) following an extremely volatile year, including a
global health pandemic, substantial economic disruption, a tense political climate
and growing calls for social justice around the world. In times of such great
uncertainty, procurement must provide stability to the enterprise through spend
cost reduction and supply assurance. As expected, supply risk management has
emerged as the procurement function’s second most important objective in 2021.
Procurement must also support enterprise stabilization and recovery strategies
by expanding its role as a strategic advisor that can quickly realign to changing
market conditions and business priorities, and add new sources of value to
the business – for example, new and innovative sources of supply and early
warnings of potential supply risk. Other procurement objectives reflect the
function’s need to adapt more quickly as conditions change, as well as digital
tools, strong talent and improved analytics capabilities. Notably, meeting
corporate sustainability goals makes the list of 10 key issues for the first time.
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