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Sustainable and ethical procurement emerges as a key business pressure

Sustainable and ethical procurement emerges as a key business pressure

RS Components has launched the 2021 Indirect Procurement Report ‘From Disruption to Recovery’ – the resulting report of responses from the fifth annual survey produced in association with the Chartered Institute of Procurement and Supply (CIPS). It explores how the category of supplies for maintenance, repair and operations (MRO) is managed. The survey was the biggest yet, with more than 1,300 global respondents from the procurement profession.

These respondents are from sectors including manufacturing, public sector, energy, logistics and retail, transport and defence and technology, covering job roles from operational through to senior and director level.

While reduced operational budgets and the need to reduce inventory costs remained in the number one and two spots as the top business pressures, for the first time sustainable and ethical procurement emerged as a business pressure among the top three. Some of the main themes emerging from this year’s survey included Covid-19, sustainability and digital technology enabled growth.

Emma Botfield, managing director for the UK and Ireland at RS Components, said: “This comprehensive and insightful report has highlighted that while the MRO procurement profession is still feeling the impact of Covid-19, a post-pandemic procurement world is starting to emerge. With a bigger than ever survey sample, we’ve been able to really get to the heart of the issues affecting MRO procurement and how firms are dealing with it. We’re pleased to be able to share this valuable insight and help drive best practice across the whole industry.

“It’s great to see that despite the additional challenges indirect procurement has faced over the last year, sustainable and ethical procurement has been put back firmly on the agenda, and technology adoption continues to grow, providing opportunities for organisations to drive efficiencies. The procurement profession clearly plays a key role in survival for many organisations, and we look forward to continuing to support them in their mission to navigate the Covid-19 impact recovery and embrace automation and digital tools that will enable them to do more with less.”

Helen Alder, CIPS group head of knowledge, added: “Forecasting a pandemic probably didn’t appear on most organisations’ business continuity plans - and the impact could never have been predicted – but most are now reacting and maximising relationships and adapting to working online where they can to get things back to normal.

“It’s understandable that supplier rationalisation has decreased as organisations have to buy the goods and services in to keep the business going. More enlightened organisations realise it’s not just about the price paid, but the total cost, including process costs, and cost of buying and storing the goods. Also, it’s important to factor in the additional value suppliers can add can to help mitigate risk, improve efficiencies and help with continuity planning. The pandemic has certainly highlighted how we should evaluate new suppliers.”

 

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