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Sustainable Profit: Evolving the Value Proposition of Procurement

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"Today’s procurement leaders are navigating a world defined by disruption. Natural resources are stretched thin, natural ecosystems are being destroyed and people who work in the supply chain as well as those they serve are stressed and strained. Recent events have highlighted a critical weakness in current supply chain design. We have become hyper efficient to the point of being fragile (and in some cases to the point of failure). In response, stakeholders at all levels are demanding change."

 

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In the 2022 Gartner ‘Sustainable Profit: Evolving the Value Proposition of Procurement’ report, analyst Ryan Polk discusses how sustainable profit must become procurement's orienting principle, and highlights that "Chief procurement officers must upgrade their operating model in terms of governance, capabilities, value streams and resources to deliver value in the future”.

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“In a recent Gartner survey, 62% of the most mature procurement organizations highlighted that developing stronger, more collaborative relationships with their supply base is a top priority. The top benefits reported by respondents highlight cost and quality improvements, along with higher engagement in sustainability initiatives and priority access to scarce capacity.”1

 

Source: Gartner, "Sustainable Profit: Evolving the Value Proposition of Procurement", by Ryan Polk. Published 25 February 2022. 

1 Source: Gartner, "Follow Gartner’s 4-Step Framework to Implement an Effective Supplier Collaboration Strategy", by Miguel Cossio. Refreshed 7 June 2022. Published 2 February 2021.

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