Earlier this week, CIPS released the all-important “theme” for next month’s L6M4 Future Strategic Challenges for the Profession exam. This time round the theme is: Digitalisation of Procurement & Supply Chains, and once again CIPS has chosen a key forward-looking disruptive technological influence on procurement and supply chain processes. This one should be a belter!
Last time round, Cordie achieved an unprecedented 100% exam pass-rate, and naturally we are ambitious to repeat this again. We have updated and modernised our approach to research and study for this exam, with a two-day interactive study workshop plus tutor-led homework and coaching support.
Remember, CIPS offers zero support to its learners for this module: you will be flying solo with no study guide or supporting learning content to work from.
Naturally, digitalisation is an increasingly important theme for procurement. It relates to the automation of key procurement and supply chain processes, using digital data and technological solutions. The benefits are obvious: efficiency, speed, traceability, auditability, etc. However there are risks and potential drawbacks too.
Choice of technology partner and technology solution(s) is an obvious challenge. Investment costs, total costs of ownership and switching costs provide another challenge making for an interesting “cost vs. reward” business case.
Other challenges relate to data integrity, processing security and data ownership issues. Already these are major challenges in today’s inter-connected global world, but how much more so for a fully digitalised supply chain?
Does the ability for digitalisation ‘readiness’ start to prohibit some suppliers and change markets? Particularly smaller or less formalised organisations, such as small and medium-sized enterprises (SMEs) or those in the third sector. The rapid progression of digital capabilities and technological solutions could risk a shrinkage of capable suppliers in certain key markets, unless the technology has built-in some kind of accessibility safeguards against this.
There are then additional considerations regarding the nature of supplier relationships, the role of the procurement function and the future skill-set of procurement managers, category managers and contract managers. Moving to a fully digitalised supply chain is a transformational change for many.
All of these issues will be discussed in our first study workshop next week! It proves to be a fascinating subject of discussion and one that will bear significant fruit in next month’s exam.
Remember, CIPS is not looking for technical experts in whatever the subject-matter of their published themes is. They are looking for your thoughts and deductions as to the impact that these themes have on the procurement profession. Over the years, procurement has re-positioned itself as a critical forward-looking valued-adding business partner - but it needs to continue to do this, and digitalisation is one of those opportunities to continue adding value to our organisations.
Please feel free to get in touch if you would like to be involved further in these discussions.
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