Where Manufacturing Procurement Technology is Headed: A New Interview Series

manufacturing Hamik/Adobe Stock

Why have procurement technology vendors initiated a “direct procurement” renaissance, and what changes within manufacturers have started to make this possible?

This line of questioning forms the backbone of a new interview series over on our sister site MetalMiner, in which Spend Matters Founder Jason Busch questions multiple experts at technology vendors on these and related topics. In conversations spanning the intricacies of global trade to the increasing centralization of procurement departments, Busch gets to the bottom of this rising trend, finding insights about the state of the procurement profession and the solution provider landscape along the way.

CLAIM YOUR FREE COPY: Supply Risk Management and Compliance Landscape Definition and Overview

The series kicks off with Paul Noel, senior vice president of procurement solutions at Ivalua Inc., which works with leading manufacturers such as Meritor, Whirlpool and Michelin. Noel’s analysis of the direct procurement renaissance points to the confluence of four trends: slow global growth, dwindling opportunities for savings in indirect spend, the rapid pace of technological innovation and the increasing importance and centralization of procurement in the enterprise.

All of these, Noel continues, indicate that procurement is ideally placed to help businesses manage the trade-related supply risks they’re facing.

“In cases of shifts in trade and tax policy, technology can provide total cost and cost breakdown analysis to better plan and adjust the tax-adjusted supply chain. It can capture manufacturing and procurement knowledge in case of supply chain shifts and relocation, and it can bring about improved insight and management of supplier and subcontractor practices and risks. In addition, technology can provide enhanced prior alerting of economic and geopolitical risk events — and the impact of changes in the supply chain on supply risk.”

To learn more about this and related direct procurement topics, check out Part 1 and Part 2 of Noel’s interview, and be sure to check back for additional installments from this series in the coming days.

Please follow Nick Heinzmann on Twitter @n_heinzmann.

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.