RALEIGH, N.C., Aug. 30, 2023 /PRNewswire/ -- In an era marked by unprecedented challenges, the procurement function in leading organizations has demonstrated resilience, innovation, and strategic foresight. These teams have not only ensured business continuity but have also played a significant role in contributing to shareholder value, according to the latest analysis by Beroe.
Overcoming Supply Chain Obstacles
The global business landscape has been rife with disruptions, especially since the onset of the Covid-19 pandemic. Procurement Organizations have been at the forefront, addressing:
Soaring Inflation: With Western economies experiencing inflation rates at levels unseen in four decades, Procurement has adeptly recalibrated pricing and contractual terms.
Two-speed Inflation: As commodity prices stabilize, service sector inflation remains high. Procurement professionals are now tasked with balancing cost optimization strategies between direct and indirect categories.
High-interest Rates: Elevated interest rates worldwide have impacted the supply chain, especially small suppliers. Procurement teams have been proactive, offering accommodating supply chain finance solutions to these suppliers.
Geopolitical Sanction Threats: Rising geopolitical tensions have introduced uncertainties in supply chains. Procurement has been instrumental in navigating these challenges, ensuring businesses steer clear of blacklisted entities.
The Shift to Nearshoring/Reshoring: The pandemic has prompted businesses to re-evaluate their extended supply chains. Many are now
favoring suppliers closer to their operational bases to avoid logistical or geopolitical challenges. Procurement's role has been central in facilitating this strategic shift.
Addressing the Challenge of Scope 3 Emissions: Procurement's commitment to reducing a company's Scope 3 emissions is noteworthy. They have been at the forefront, making pivotal choices and partnering with suppliers to reduce carbon emissions throughout the value chain.
Beroe's Best-in-Class (BIC) Index 2023
Highlighting the significance of Procurement in today's business environment, Beroe's Best-in-Class (BIC) Index for 2023 showcases companies that have excelled in optimizing the "Cost of Goods Sold" (COGS), inventory, and payables. This year, 51 companies from 17 industries have been recognized. These companies have collectively outperformed global benchmark stock indices such as the S&P 500, FTSE 100, and DAX over a four-year period.
Procurement's Undeniable Influence on Profitability
Procurement's role in a company's profitability is often underestimated. However, as the challenges of the past years have shown, their contribution to efficiency, cost savings, and risk mitigation is critical to a company's bottom line. Their collaboration with finance departments ensures alignment with overarching business objectives, streamlining operational processes, and enhancing cash flow visibility.
Conclusion
The role of Procurement in shaping the financial success of companies is undeniable. Beroe's findings underscore the importance of investing in Procurement Teams and Operations for greater shareholder value. It's imperative for top-level executives to recognize and amplify the vital role Procurement plays in today's complex business environment.
For a detailed list of Beroe Best-in-Class Award Winners and an in-depth look at the BIC Index methodology, please visit https://www.beroeinc.com/best-in-class-companies-2023 .
About Beroe
Beroe is a global SaaS-based procurement intelligence and analytics provider. We deliver intelligence, data, and insights that enable companies to make smarter sourcing decisions – leading to lower costs, reduced risk, and greater profits. Beroe has been a trusted intelligence source for more than 15 years and partners with 10,000 companies worldwide, including 400 Fortune 500 companies.
Learn more about Beroe - https://www.beroeinc.com/
Press Contact:
Debobrata Hembram
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