Inflation is preventing procurement teams from achieving 'supply ...
Inflation is leading companies to deprioritize environmental, social, and governance (ESG) initiatives, according to data from Ivalua. The research shows that 90% of businesses have experienced supply chain disruptions due to inflation, making it challenging to improve sustainability and labor standards. Despite regulatory pressure and consumer demand for transparency, companies are focusing on cost-cutting instead of ESG. The rising cost of energy, fuel, and raw materials has led to a shift towards cheaper suppliers rather than greener ones. Procurement teams must prioritize transparency and collaboration to address these trade-offs.
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Frequently Asked Questions
Q: How does inflation affect procurement teams?
A: Inflation can pose challenges to procurement teams by increasing costs for businesses and impacting their ability to source materials and products within budget.
Q: What actions can procurement leaders take to combat inflation?
A: Procurement leaders can take the following actions:
- Set ambitious cost-saving targets and identify opportunities for cost optimization within the supply chain.
- Collaborate with suppliers, negotiate contracts, seek alternative sourcing options, and explore innovative solutions.
- Streamline and enhance procurement processes to mitigate the impact of inflation.
Q: Where can I find more information on inflation and procurement strategies?
A: While specific FAQs may not be available, you can explore industry-specific resources, professional organizations, and government websites. Additionally, consulting with industry experts or joining relevant forums and communities can provide valuable insights and best practices.
Please note that this information is based on general findings and it is recommended to consult reliable sources and experts for specific guidance tailored to your organization's needs.