GEP Outlook Report 2021

The latest GEP Outlook 2021: Supply Chain and Procurement Report highlights some of the issues that will dominate the boardroom this year and beyond…… 

Amid exceptional uncertainty, the global economy is projected to grow 5.5 percent in 2021 and 4.2 percent in 2022, according to the latest International Monetary Fund (IMF), World Economic Outlook Report. (for more info see source: IMF World Economic Outlook Report)

According to the latest GEP Outlook Report 2021 for Procurement and Supply Chain, “the global economy appears to be on a revival path after a year of pain, and a partial recovery from the ongoing recession is expected in 2021.”

Amid this more optimistic environment, the latest GEP Outlook 2021: Supply Chain and Procurement report discusses the priorities that will dominate the boardroom this year and beyond. Interesting to see how these progresses as we move into, what we expect to be a fast-changing procurement and supplychain environment in 2021 and beyond… Beaumont Select



GEP Outlook 2021: Supply Chain and Procurement report executive summary key points (source: GEP Outlook Report 2021):-

 

• Supply chain resilience is emerging as a competitive differentiator, but it requires a fundamental shift in the approach to collaboration. 

• A new balance between flexibility and efficiency. As firms expand supply sources, broaden supply networks, increase redundancy and strike a new balance between flexibility and efficiency, complexity will skyrocket.

• Risk management capabilities to navigate this complexity will be a priority upgrade. 

• The very notion of what is essential for a business has changed. Businesses have secured work-from home systems and invested in more flexible and scalable technologies — thereby changing how they value assets and supply networks. A business that is nimbler and more flexible will have different priorities. 

• Sustainability is now a board-level topic. Priorities have shifted for this year Sustainability has long been an objective for activists, consumers and a growing majority of business leaders; compelling leading companies to report and credibly track sustainability priorities. 

• Momentum is also building for diversity and inclusion. The social outrage and protests of 2020 will leave a lasting impression on procurement and supply chain leaders, who hold some of the keys to real change. Efforts to select and manage a different supply base will unlock and reinvigorate this movement. Leaders will integrate this directly into their procure-to-pay and supply chain systems. 

• CFO’s and CEO’s will challenge procurement and supply chain teams to operate differently. Many leading companies are entering 2021 as changed businesses — some as smaller entities, others wounded. After tough choices last year, leaders will find that the investment choices this year are even tougher. One clear but challenging task is coming to grips with a cost structure that reflects a post-pandemic world. 

• Procurement and supply chain teams will need to strike a new partnership model with finance, upgrading the teaming that normally occurs only in the budget process. Businesses need real-time budget availability to inform decisions, especially in a world where decisions need to be made rapidly and with more flexibility. We are also approaching the era of automation. Digital technologies have advanced far enough for even core functionalities to be automated. 

• An ecosystem of partners must connect and exchange information easily to enable better, faster choices and decisions. Transparency is imperative to facilitate real, resilient improvements. A more resilient supply chain is, regrettably, a more complex one.

See the GEP Outlook Report 2021