Digital supply chains
Digital tools help most where goods wait. The World Bank LPI 2023 found that most time is spent in shipping but that the biggest delays occur at seaports, airports and multimodal facilities. Ask each supplier how it tracks an order and how fast it reports a delay.
Sustainable supply chains
Sustainability has moved from the annual report into the contract. The OECD notes that laws and regulations with environmental objectives affecting supply chains may cover almost half of global economic output. ISO 20400:2017, Sustainable procurement gives guidance to organisations of any size on building sustainability into procurement.
Risk management and resilience
A resilient chain is not one where nothing goes wrong. It is one that keeps working when something does. The OECD review found that the number of products sourced from a limited range of suppliers is 50% higher in the early 2020s than in the late 1990s. ISO 31000:2018, Risk management describes a common way to identify, analyse, evaluate, treat, monitor and communicate risks.
Procurement on total cost
The headline price is what a supplier quotes first. The total cost is what you pay for as long as you use what you bought. Directive 2014/24/EU, Article 68 of EU procurement law lists the parts of life-cycle costing: acquisition, use, maintenance and end of life. The total cost of ownership page works through an example, and the supplier comparison checklist puts the offers side by side.