H&Z Presents Rolls-Royce with Risk & Resilience Award at WPC 2024

Recognising Excellence in Risk and Resilience

The World Procurement Awards honor exceptional achievements in the field of procurement. This year, H&Z collaborated with Procurement Leaders to present the Risk & Resilience Award to a procurement organisation that has skillfully managed unforeseen events and volatile environments by leveraging advanced techniques, processes, and technologies.

Supply chains are a complex network of risk, with the global business and geopolitical landscape presenting rare challenges. Procurement functions that provide predictability, secure supply, rapid responses, and confidence to the executive committee drive significant competitive advantage.

Being shortlisted for this prestigious award is an honour, and we’d like to recognise the exceptional procurement teams from ADNOC, Electrolux Group, GE Vernova, HEINEKEN, Johnson & Johnson, Mars, Nomad Foods, PepsiCo AMESA, Rolls-Royce, SAP, Schindler, The Kraft Heinz Company (Project Marble), The Kraft Heinz Company (RiskWatch Hub), and UCB who were considered by the judges.

"Very Ambitious Programme, Well Executed and with Great Outcomes."

Recent developments have introduced unprecedented levels of risk for Rolls-Royce, particularly as the aerospace sector faced severe impacts from the pandemic, leading to an overnight decline in demand. Consequently, over 8,000 employees departed from Rolls-Royce, many from procurement, forcing the company’s supply chain to cut investments, reduce staff, and decrease inventory.

Risk levels have remained very high while demand for Rolls-Royce products has continued to rise. Strengthening the company’s risk and resilience capabilities during 2023 was, therefore, essential. Its procurement and supplier management teams launched a comprehensive external risk management improvement programme, focusing on six key areas:

• Risk identification and prioritisation.
• Mitigation planning.
• Event recovery management
• Risk management processes.
• Enhancing external benchmarking and intelligence.
• Increasing supply chain engagement.

Several key scenarios have already put this revised approach to the test. Ultimately, Rolls-Royce has made substantial enhancements to its risk management capabilities, ensuring future success for both the company and its supply chain.