Decoding the Shift Towards Lean Procurement in 2024 

What’s Unique About Volume 2 of Voice of Procurement? 

The key takeaway emerging from volume 2 of the whitepaper is that lean procurement is the point at which continuous cost optimization meets continuous improvement.  

Continuous cost optimization across fortnights, months, financial quarters, and financial years can be achieved by fulfilling two necessary conditions: 

1. The right data governance to identify gaps between the current and future states of value stream maps .
2. A digital supply chain skeleton that can enable agile feedback loops for procurement teams to set sail on the path of continuous improvement or kaizen through progressive PDCA cycles

What’s Included in Volume 2 of the Voice of Procurement? 

Volume 2 of the Voice of Procurement brings 7 insights that tell how CXOs in procurement are responding to 7 critical questions in 2024 Vs 2023. 

Each such chapter contains:  

✅ a chapter summary capturing the trend 

✅ takeaways for CXOs on procurement & supply chain 

✅ user recommendations for procurement leaders and their teams 

✅ actionable frameworks for CXOs in procurement to get started on continuous improvement 

From Continuous Improvement to Continuous Cost Optimization: The Rise of Lean Procurement 

From work in process, inventory levels, and time to costs, the science of doing more with less is catching up with the community of procurement leaders and practicing supply chain managers is like never before.  

The job of engineers is to make a product or to build an infrastructure project. It is the job of the procurement people to enable its make or build at the optimum cost.  

But continuous cost optimization across months, financial quarters, and financial years calls for more than just negotiating with suppliers for the best price discovery. It calls for lean procurement.

Thoughts on Research Behind the Whitepaper 

The second edition of our survey in 2024 featured 130 respondents from a diverse cross section of industry verticals in the manufacturing sector and featured the same set of 7 questions that we had asked last year to assess the shift in perspectives of the procurement community.  

At the end of the data collection and analysis exercise, we have got 7 takeaways, analysis and insights on questions ranging from a holistic view of the supply chain, ESG compliance, digital procurement & supply chain transformation and procurement outsourcing. 

To access this whitepaper and all the latest research on procurement, become a client.  

Every day, CPOs and their teams from 1000+ manufacturing enterprises across the U.S, Mexico, the U.A.E, Singapore, and India plug into Moglix Business’s procure-to-pay operating system to continuously improve their performance. Get in touch with a Moglix Business procurement expert to know you can get started on the path to continuous cost improvement. 

Insights on Supply Chain Strategy and Procurement Digitization for Indian Manufacturing in 2023 

About the Release of the Whitepaper 

2023 holds significance for the Indian manufacturing sector and the Indian economy for multiple reasons. 2023 marks India’s Presidency of the G20, begins the countdown on our pledges on net zero emissions at COP26 and COP27 by 2070, and marks the beginning of the end of the COVID19 pandemic. Above all 2023 resumes the journey of CXOs in Indian manufacturing towards a USD 5 trillion GDP. Amid all the market dynamics, massive fiscal expansion by the Government of India under the aegis of the Union Budget for policies like the National Infrastructure Pipeline, PM Gati Shakti, Make in India, Bharat Mala, and Sagar Mala, CXOs need to answer to three questions to simplify procurement.  These questions relate to choices of: 

• Supply chain strategy 

• Procurement digitization and 

• Output metrics 

for the line items that they procure.  

This whitepaper is aimed at enabling visibility into what supply chain and procurement leaders are prioritizing in 2023.

Thoughts on Research Behind the Whitepaper 

Our first whitepaper “Voice of Procurement: Analysis and Insights on Supply Chain Strategy in 2023” is a simple statistical inferencing exercise that brings out which pain point has garnered how many pocket book votes in the true spirit of free market democracy.  We reached out 100 respondents from a wide diversity of our enterprise customers to seek their responses on questions pertaining to their priorities for 2023. We analysed their responses to arrive at what’s the priority that gets maximum votes and thereby decoded the trends in quantitative terms.

Audience of the Whitepaper 

The whitepaper is aimed at procurement and supply chain leaders of the Indian manufacturing supply chain ecosystem. The procurement and digital supply chain transformation trends that we have identified represent the collective responses and priorities of the following industry verticals and sub-sectors: 

1. Automobile 

2. Infrastructure EPC 

3. Electrical Switchgear 

4. Tyres 

5. Metals & Mining (Non-Ferrous and Iron & Steel) 

6. Wires & Cables 

7. Textiles 

8. Pharma 

9. Chemical 

10. Renewable Energy (Solar PV, Hybrid) 

11. Consumer Electronics 

12. Cement 

13. FMCG 

14. Footwear 

15. Real Estate 

At the end of our analysis, we leave you with a simple decision-making enabler for choice of supply chain strategy and procurement technology for diverse categories of line items.

Contents of the Whitepaper 

The whitepaper contains insights on: 

• Cost optimization as a procurement priority for manufacturers in India in 2023 

• Supply chain substitutions for fulfilment of the mandate for ESG compliance 

• Visibility into the supply chain and metrics for exhaustive supplier capability mapping 

• Value reengineering methods for enterprises and suppliers to scale up capacity 

• Procurement digitization essentials for business continuity and de-risking 

• Integrated procurement digitization models such as P2P cycle digitization 

• Kraljic matrix for choice of supply chain strategy and procurement technology for line items