The Procurement Initiative Pulse Check Q2/2024

ABOUT THE LATEST PULSE CHECK FROM THE PROCUREMENT INITIATIVE

Inside this edition, conducted between 24th and 28th June 2024, we have gathered insights from over 100 industry professionals. This report provides a snapshot of the challenges, strategies, and innovations shaping the procurement landscape today.

KEY TAKEAWAYS:

• Supply Chain Stability: 57% of respondents have a positive to very positive outlook for 2024.
• Cost and Sustainability: A shift towards sustainable practices as inflationary pressures ease.
• Geopolitical Risks: Identified as major threats impacting profitability and procurement functions.
• Raw Material Costs: Significant impact on procurement strategies, with an average of 35% of companies’ procurement volumes.

ADVANCED STRATEGIES FOR PRICE MANAGEMENT:

• Price agreements with adjustment clauses and fixed price agreements.
• Increasing use of business intelligence tools and clean sheets for better cost transparency.
• Linking raw material costs to market indices to hedge against price volatility.

PRACTICAL RECOMMENDATIONS:

• Adopt innovative measures like business intelligence tools.
• Focus on cost transparency and manage pricing with suppliers effectively.
• Achieve better procurement outcomes with strategic improvements.

UNLOCK TRUE TRANSPARENCY 

Achieving cost clarity is essential for optimal procurement strategies. Only 40% of respondents have achieved full cost transparency, indicating a significant opportunity for improvement. Let H&Z’s experts help you bridge this gap and enhance your procurement processes. Contact us now.

Be sure to explore our essential guide, Procurement Pathfinder 2024, which covers secondary raw materials and the application of AI and technology, as well as other vital trends in procurement. Read the H&Z Procurement Pathfinder 2024.