New trends, uncertainty, and challenges have irrevocably marked the procurement sector. Lockdowns, the blockage of a ship in the Suez Canal, natural disasters, labor shortages, the war in Ukraine, rising energy prices… The last few years have been truly challenging for all aspects of business operations. However, throughout this period, supply chain issues have been particularly affected. Procurement is becoming increasingly challenging, and alongside this, a new shift in the sector raises questions of digitalization and sustainability.
We are hearing more about the challenges in procurement this year at the 18th Leader’s Procurement Conference, which was opened by Mirela Senica, president of the Croatian Association of Procurement Professionals (HUND).
In her introductory lecture, Senica presented the work of HUND, as well as the global association IFPSM, of which HUND has been a member since 2007. She also introduced the members of the association’s management and emphasized that the association gathers procurement professionals not only from Croatia but from the entire region.
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‒ I hope you will have the opportunity today to expand your network of contacts, find colleagues, and raise awareness about the possibilities and importance of procurement in companies ‒ said Senica.
Markku Henttinen, CEO of IFPSM (International Federation of Purchasing and Supply Management), also delivered his introductory lecture to an interested audience, praising Croatian and regional colleagues, stating that he is extremely pleased that ‘a country that is small in population is not so small in this global alliance’.
– You are the engine of growth and progress for every organization; you have the whole world ahead of you. Today, you are not just looking for the cheapest products but the best that the world can offer your organization and your users – said Henttinen, adding that one must never forget partners such as suppliers, as without them and without maintaining good relationships, there is no progress.
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– Procurement should be the leading sector in every organization, whether private or public, and it should hold an important place in the internal hierarchy of the organization – claims the CEO of IFPSM, who emphasized that one must not forget and must be aware of the value that procurement brings to companies.
An exceptionally interesting lecture on the evolution of procurement and market trends was delivered by Petteri Nisonen, CPO of Fazer Group, who stated that it is precisely procurement that must ensure the company’s future. As he said, there have been significant changes over the past twenty years, and climate change has also had a major impact.
Nisonen, like Henttinen, comes from Finland, a country where companies place exceptional focus on sustainability, which, no matter how important it is today, will have even greater significance in the future. Procurement today, he claims, is undergoing an evolution and revolution because while its function in the past was to provide support, today it is an equal business partner in the company that certainly provides added value.
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Speaking about supply chains, Nisonen conveyed that there has been a global shortage of raw materials and added that due to climate change, trends are likely to continue at this pace, and for this reason, procurement needs to be in constant communication with other departments in the organization.
– It has become important how procurement can offer innovations, and this requires many new talents – says Nisonen, adding that a new space is being created for young people in procurement who will certainly bring changes and take a step further in this area of activity.
The CPO of Fazer Group provided examples from his own practice, stating that his company began a procurement revolution long before the crisis and therefore was well-equipped to handle all the challenges brought by the latest crises, from the pandemic to the current geopolitical upheavals in the east. This highlights the importance of proper preparation not only of the organization but ultimately of its employees.
– In the end, there are also suppliers; talk openly with them, but also listen to them because they are full of wisdom, meet your competitors, and may know even more than you – concluded Nisonen at the Hilton Garden Inn.
