In an unpredictable global landscape, procurement and supply chain management are more complex than ever.
RLB’s Head of Supply Chain & Procurement, Jake Bush, talks to Emerging Risks about how clients can manage this risk in their supply chain and what strategies they should put into place.
The complexity of procurement and supply chain risk is resulting in many clients leaving opportunities on the table revealed RLB’s latest Procurement Trends report.
While those who manage their risks are seeing cost savings up to 20% or more, and procurement timelines cut by up to 40%, those who do not risk being left behind.
RLB’s Jake Bush comments:
“With a volatile global environment, the stakes are high and for many the risk too great, resulting in them passing up potential projects. However, research shows that managing a supply chain enables decision makers to take up opportunities that were previously seen as too risky and save up to 20% costs or more in the process and achieve 95% or higher on-time delivery.”
The research found more than 40% of contractors are seeing an uptick in collaborative procurement practices, and 25% increased appetite for sharing risks. Whilst both are increasing, the rate of increase is slowing since last year, which suggests that the market is maturing and embedding these new found behaviours.
The drive for greener, more sustainable construction is increasingly evident in tenders. Nearly a third (31%) now set clear sustainable targets, up from 23% last year. But translating targets into delivered results is patchy, with one in three projects that define targets missing them, and that proportion largely unchanged year on year.
Jake adds:
“Sustainability is still a key criteria for many investors and developers, which is being seen clearly across the supply chain process. However, not integrating these objectives into the supply chain often means failing to fulfil or measure their sustainability targets.”
This year’s report highlights how supply chain uncertainty is stalling progress across the industry. Organisations that treat each project as a standalone transaction are particularly vulnerable, missing out on strategic opportunities due to a lack of long-term supplier engagement. The upside is that by building a value chain rooted in strategic partnerships, supported by experienced teams like RLB, businesses can secure the right partners, manage risk more effectively, and ensure their projects are both viable and future-ready.
This is an abridged version of an article that first appeared in Emerging Risks.
RLB’s Supply Chain and Procurement Management service is designed to help organisations navigate complex procurement challenges and build resilient, efficient, and sustainable supply chains.
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