Digital transformation of procurement: A supply chain risk perspective

Abstract

In an era marked by geopolitical tensions, global supply chains confront challenges that demand a proactive approach to risk management. The success of digital transformation relies on enhanced collaboration across functional areas and robust technological support. Leading companies are integrating supplier relationship management with risk management capabilities while leveraging digital tools for supplier risk intelligence. The adoption of data analytics tools enhances supplier visibility and facilitates the transformation of raw data into actionable insights. This approach allows for more targeted sourcing strategies that align with global regulatory changes. Moreover, the implementation of economic supply chain risk capital alongside modern supply chain finance solutions empowers companies to define their risk appetite, allocate risk capital to business units and assess performance on a risk-adjusted basis. This paper outlines a comprehensive approach intended to equip organisations with the tools and insights necessary to effectively manage the complexities of modern supply chain risk dynamics.