P&SC LIVE Singapore 2024: The Procurement Strategy Forum

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The Procurement Strategy Forum hosted at Procurement & Supply Chain LIVE Singapore 2024, experts explore the evolution of supply chains

Procurement & Supply Chain LIVE Singapore 2024 served as an enriching learning experience for the procurement and supply chain community. 

This year's edition of the event included the Procurement Strategy Forum, featuring Rai A. De Jesus, Chief Procurement Officer at PLDT, and Rahul Garg, Founder and CEO at Moglix.

The pair shared valuable insight on how to refine procurement strategies in order to adapt to an ever-evolving business landscape.

Critical components of a dynamic strategy

Rahul outlined three pivotal elements crucial for crafting a robust procurement and supply chain strategy: mitigating global supply chain risks, fostering sustainability and embracing digital transformation.

He stressed the imperative of integrating AI into digital procurement strategies, stating: "If you haven't started a digital journey, that itself is a problem. AI can streamline procurement processes, making them more efficient and effective." 

Sustainability emerged as another focal point, with Rahul highlighting its transition from trend to necessity.

Rai chimed in, acknowledging the traditional focus on cost-saving within procurement but urging a shift towards considering broader impacts on sustainability and environmental goals.

Rahul Garg, Founder & CEO, Moglix

He added: "Traditionally, procurement has always been a cost-saving function in the organisation, but with more and more things being purchased and with the advancement of technology, we should also be looking at how we impact overall sustainability and environmental goals."

From blueprint to action: The execution phase

Rahul and Rai agreed on the supremacy of execution over strategy, with the former suggesting a 90/10 split.

He stressed the indispensability of collaboration and iterative processes between strategy architects and execution teams for seamless implementation.

"The hardest part of any digitisation initiative is having the courage to start," Rai highlighted.

He advocated for courage in commencing such endeavours, alongside having the flexibility to adapt and course-correct as needed. Establishing a dedicated transformation office, Rai suggested, facilitates effective management and adjustment throughout the process.

"Any transformation or implementation will always have to have that room to be able to course-correct, to be able to identify that this might not be the right solution or we might not have the right solution now," he said.

Rai A. De Jesus, Chief Procurement Officer, PLDT

Navigating strategy pitfalls

The discussion pivoted to common pitfalls in strategy formulation, including arrogance, lack of awareness of ground realities and blind emulation of strategies from other entities. Successful implementation demands accountability, transparent communication and alignment across the organisational hierarchy.

"You can have a very well-written strategy impacting goals or priorities," Rai stressed. "But if there is no clear figure or team that will help you sponsor this at the top of the organisation, provide that guidance at the operating committee and communicate it downwards.

"That's very important so that you can keep the organisation moving forward, address all the challenges as it is released and keep everyone on the same page."

Conversation shifted towards integrating a robust risk and resilience approach into strategy formulation, encompassing supplier diversification, ESG considerations and mitigation of global supply chain disruptions.

"Whoever creates the strategy should always be part of it until it gets fully executed," Rai continued. 

Post-COVID, geopolitical stability emerged as a critical factor influencing supply chain dynamics. Leveraging advanced technologies like AI and machine learning can augment visibility and risk management within supply chains.

Rahul highlighted the necessity of diversifying suppliers and factoring in ESG considerations and global disruptions, accentuating the heightened importance of geopolitical stability in post-pandemic supply chain strategies.

"You have to think of all these dimensions now, which used to be probably only one," Rahul concluded. "This third dimension, introduced post-COVID, is very unique and crucial for supply chain strategy."

More to come in 2024…

Procurement & Supply Chain LIVE will host two more events in 2024:

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Check out the latest edition of Supply Chain Magazine and sign up to our global conference series – Procurement and SupplyChain LIVE 2024

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