Managing supply chain issues is the top priority for procurement and sourcing executives, with 68% noting it’s a very important priority and 22% saying it’s somewhat important, according to a Keelvar study. The Top 3 challenges remain meeting cost and reliability targets, fluctuating supply and capacity constraints and the ability to react to disruptions.
“Today’s bottlenecked supply chains are causing delays and shortages like we’ve never seen before,” says Alan Holland, founder and CEO of Keelvar. “Procurement leaders have entered unchartered territory. We’re facing severe capacity and labor shortages, a spike in canceled contracts, supplier risk, and more while trying to drive non-price supplier priorities like sustainability and reliability. With complexity at an all-time high, organizations must have the ability to make quick sourcing decisions to ensure continuity and resiliency.”
- Sustainability will increase in value over the next five years as the top sourcing priority -- outranking quality, innovation, cost and more -- yet only 32% rank it as very important to them right now. Nearly 65% professionals say justifying potential cost increases associated with making sustainable decisions remains a roadblock.
- 35% of sourcing teams reported significant or slight growth in the size of their team over the last 12 months, regardless of tightened budgets and higher manufacturing and logistics costs.
- Many teams haven’t fully adopted modern sourcing technology to manage today’s complexity. In fact, nearly a quarter of respondents rely mostly on manual processes and spreadsheets, yet 99% of respondents agree parts of the sourcing process should be more automated.