The future for procurement risk management is data-driven

Speaking to The Hackett Group’s Nicolas Walden, Procurement Magazine uncovers the future of risk management in procurement, and it’s data-driven

WRITTEN BY: GEORGIA WILSON

No stranger to risk, the procurement function has to battle many day-to-day challenges from a variety of sources. Such challenges can come from suppliers (financial stability, quality of product, service provided, delivery times, regulation compliance, ethical standards); markets (volatility, supply chain disruptions, demand changes, price fluctuations); operations (inefficiencies, inadequate controls, lack of transparency); and compliance (fraud, data privacy, labour practices, environmental impact).

Whilst there are many methods to mitigate risk, an emerging approach within procurement is ‘cognitive data-driven risk management’. Empowering businesses to make smarter decisions when securing their supply chain, “data-driven risk management is the future”, with there being “no feasible alternative”, according to Nicolas Walden, Associate Principal and UK & Europe Practice