Currency fluctuations, oil prices, and the Eurozone crisis: the list of risks that concern the procurement world is ever expanding, according to the research of 2015 Global Procurement Study released by Xchanging this week.
“All major economic crises affect cost, availability and competitive positioning within procurement and the supply chain,” said Chirag Shah, executive director of Xchanging. “By implementing predictive modeling technology platforms that assess each risk, and building contingency plans, organizations gain greater visibility and control of their full supply chain. This allows companies to manage a greater proportion of spend (especially at the tail end), meaning these risks, and their potential to damage businesses, can be significantly reduced.”
In fact, more than three quarters of procurement pros claim that supply chain risk tops their list of operational challenges, while 17% put it at the level of an “extreme challenge.” This second phase of the study surveyed 830 procurement decision-makers across the United Kingdom, Europe, and North America.
Other operational risk concerns on the laundry list:
- Regulation and audit (71%)
- Lack of supplier innovation (63%)
- Fluctuations in currency (58%)
Take a look at the infographic below and then let us know where your greatest concerns lie in the comments section.
— Hailey Lynne McKeefry, Editor in Chief, EBN