Procurement Bites - An ACG Expert Series

This blog series aims to touch on the primary challenges and opportunities facing the procurement and supply chain function today. The primary themes covered are critical success factors for all companies, namely innovativeness, operational & capital expenditure effectiveness and sustainability. Companies getting these factors right, from a procurement and supply chain perspective, will develop a competitive advantage over their competition. An overview of the blogs is provided below.

Budget Reductions & Procurement

This blog spot focuses on procurement’s critical role in maintaining the high-quality delivery of goods and services in budget reduction environments. Specifically, reductions in budgets do not have to translate into reduced quality or quantity of goods and services if procurement effectiveness can be enhanced.

Capital Procurement – A Critical Competency

Industrial companies must be in a position to select and execute capital projects effectively. Otherwise, they will suffer from a reduced revenue generating asset base versus their competition. Companies consistently delivering capital projects on time and on budget will lead the industry and be favoured by investors due to their ability to effectively manage funds. Procurement’s role in this is critical.

Procurement & Corporate Identity

Companies often focus their corporate identity programs on how they interact with their own clients. This is a good start, but only half of the equation. Successful companies have realized that their corporate identity will also be defined by the way they are treating their goods and service providers. Ensuring that there is consistency on both sides of the buy and sell equation is key to having a consistent and sustainable corporate identity and reputation.

Procurement & Sustainability

This blog spot examines how seriously companies are focusing on sustainability and its importance in supply chain. It reviews the concept that sustainability must be accounted for in a transparent manner during the acquisition of goods and services.

Procurement & Risk Management

Procurement was a latecomer to the risk management field and as such has only recently started to treat risk management as a core procurement competency. It is now time for procurement to make the next step and to begin actively weighing risk versus opportunity.

Critical vs Core Competencies – The Story of Two Bakers

Industrial companies are suffering as they have failed to distinguish between critically important business services and core competencies. The short story aims to demonstrate the difference and importance of critical and core competencies in an industrial environment.

The Author Ari Danilovic is a Senior Lead Expert in the Industrial Management Unit, with extensive international management and expert level experience on major capital projects covering upstream, midstream and downstream activities in the energy industry in North America, Europe, Russia and Central Asia. His core specializations include procurement, contracting, supply chain and business enhancement as well as project feasibility assessments and project portfolio management.