Upside to Economic Downturn

Is it possible that the recent economic downturn actually spawned some good news? In procurement risk management, that might be the case.

By ·

Risk management in procurement remains “a white-hot topic,” say researchers at Accenture. In a recent “point of view” paper, analysts add that the global recession made companies significantly more aware of the need for advanced risk management practices.

It is Accenture’s position that the need for a structured risk-management capability within (as well as beyond) the procurement organization is significant.

To validate its view that risk management in procurement requires efforts beyond what most companies are doing—and to identify leading practices, metrics and solutions—Accenture partnered with Professor David Simchi-Levi of the Massachusetts Institute of Technology (MIT) in Boston on a Procurement Risk Management Research Study.

“Is it possible that the recent economic downturn actually spawned some good news?” researchers asked. “In procurement risk management, that might be the case.”

According to survey results, the global recession made companies significantly more aware of the need for such advanced practices.

Accenture’s survey, which was conducted last year, noted that 85 percent of respondents believe that volatility will remain high in the near future, thus implying that formal and sustained risk management efforts should be enacted to countermand that trend.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Private Fleet vs. Dedicated: Which one is right for you?
Having the right fleet for your business can give you an advantage over the competition and lower transportation costs.
Download Today!
From the April 2017 Issue
While adoption rates have remained relatively flat, yard management systems (YMS) are helping logistics operations turn that important space between the loading dock and the gate into a vital link in the supply chain.
Information Management: Wearables come in for a refit
2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...