Klaus Katzer, Partner at h&z Management Consulting, took the “Hot Chair” at BME’s 53rd Symposium Procurement and Logistics in Berlin, laying out three key challenges for Supply Management yesterday.
Geopolitics. The global economic shift to China, Brexit and trade wars find companies unprepared. Contingency plans must be developed rapidly or chaos will rule. In the case of Brexit, Katzer pointed out, Great Britain is already hiring additional customs officers at the Channel and is reserving shipping and storage capacities for imported EC goods. h&z Consulting has therefore qualified experts for planning and coaching no-deal-Brexit strategies for customers.
Seller’s markets. Procurement is caught in the purgatory of seller’s markets with supply risks and price hikes. Dark clouds are looming on the economic horizon: Katzer cited Austrian economic scientist Mark Thornton and his book “Skyscraper Index”: Whenever a highest skyscraper in the world is finished, it is followed by an economic crisis. Beware: The Jeddah Tower will be opened in 2020…
Katzers conclusions and recommendations: Put focus on …
- cost value analysis,
- supplier collaboration,
- integrated demand planning and forecasting,
- process efficiency and contract and claim management.
Digital transformation… is more than just IT and software, Klaus Katzer says. Supply Management must focus on …
- process digitization (e.g. reduce errors and speed up cycle times),
- E2E-collaboration (e.g. collaborative planning and P2P with suppliers),
- advanced analytics (e.g. for better management decisions and faster insights from data),
- articifial intelligence to augment human skills (e.g. support in rule-based analysis).
Klaus Katzers demand: Do it with focus, become more strategic and collaborative – with head, heart and han.