Dan Goodson, Head of Practice - Industrial, takes a look at some of the key areas for consideration for procurement within the sector this year.
- Supply Chain Volatility
- Trade Protectionism
The Industrial sector is responsible for 40% of global energy consumption and 30% of all greenhouse gas emissions.
The top of the agenda for procurement is to deliver decarbonisation, particularly through Scope 2 emissions (indirect from purchased energy) and Scope 3 emissions (indirect from purchased materials and services).
It is rightly argued that Scope 2 and 3 emissions should be controlled and targeted by procurement functions within organisations.
These are major contributory factors for many in increasing focus on sustainability and carbon-neutral goals within organisations in which procurement is a vital leader.
Supply chain volatility
Supply chains have been hit hard with Brexit in the Eurozone, the pandemic and the war in Ukraine.
Procurement functions have moved to ensure ongoing supply by supporting suppliers, diversifying their supply base, near-shoring to reduce lead times and renegotiating contracts to avoid unexpected pricing increases.
Labour shortages have impacted the ability to “bring production home” which has increased the need to create resilient supply chains and this has led to an increased demand for procurement expertise.
The supply chain volatility has led to governments imposing specific acts to encourage home manufacturing and ensure self-sufficiency, which is designed to reduce the over-reliance on foreign materials, particularly in precious metals and minerals.
Procurement must review its sourcing strategy and ensure supply base diversification and continually identify and manage risk throughout.
How does that relate to procurement recruitment in the Industrial sector?
Here at Procurement Heads, we have seen an increase in vacancies across the Industrial sector.
These vacancies are specifically in electronics, devices, defence and aerospace organisations.
Our clients are predominantly looking for Category Management specialists with excellent category strategy experts who can deliver robust supply chains for ongoing, uninterrupted production.
As decarbonisation, supply chain volatility and trade protectionism continue to be high on organisations’ agendas, the demand for top procurement candidates will rage on.
Are you looking to hire a Category Manager?
Our team of procurement recruitment experts is on hand to provide advice without obligation.
Get in touch with the team here.