In today's dynamic business environment, procurement plays a pivotal role in driving proactive and strategic initiatives to manage risks and enhance governance practices.
While 2020 saw a significant focus on procurement due to the impacts of COVID-19, the evolution of procurement has been ongoing for years. Environmental, Social, and Governance (ESG) principles have gained prominence, guiding procurement processes to align with Corporate Social Responsibility (CSR) strategies.
Interpath Services, as part of the Bunzl Group, has witnessed firsthand the transformative impact of procurement. Brendan Ahern, Director of Procurement at Bunzl ANZ, emphasizes the evolution of procurement from a traditional utility function to a strategic area, closely integrated with specialized business units and focused on addressing sustainability challenges.
Rethinking Supply Chain Management
Global supply chain challenges, including regional conflicts and shipping delays, continue to pose significant hurdles for procurement teams worldwide. In Australia, where port trade accounts for 98% of trade, local procurement teams are particularly affected by disruptions in the global supply chain.
Ahern highlights the importance of multi-sourcing strategies to mitigate risks and ensure long-term growth. Businesses with diversified supply chains have been better equipped to navigate uncertainties, emphasizing the value of a risk-aware approach in procurement.
An Evolution to Sustainability
Sustainable practices have transitioned from being optional to essential, with governments worldwide enforcing ESG targets for businesses. Procurement leads this transition, ensuring that supply chains reflect ESG principles and support sustainable practices.
Environmental considerations drive the sourcing of recyclable materials and promote reduced plastic usage. Social policies focus on combating modern slavery, emphasizing ethical sourcing practices throughout the supply chain. Governance requirements, including continuous disclosure rules, underscore the importance of transparency and accountability in procurement practices.
Interpath Services actively supports customers in achieving their ESG targets, offering expertise in sustainability challenges and sourcing solutions.
How Data Informs Decisions
Effective procurement strategies rely on reliable, accurate, and timely data. Procurement teams leverage data strategically to analyse supply chain issues and make informed decisions.
Interpath Services utilises data-led insights to drive best-practice solutions internally and externally, supporting both company objectives and customer sustainability goals.
In conclusion, as procurement continues to evolve, Interpath Services remains committed to driving proactive and strategic initiatives that enhance business resilience, sustainability, and success.