COMPANIES STRUGGLE WITH POLY-CRISIS AND AIM TO RESTRUCTURE THEIR SUPPLY CHAINS
The global business environment is entering a new phase of uncertainty. In this new paradigm, risks are no longer isolated but interconnected, forming a complex web of equally critical challenges. This shift is the central finding of our recent ‘Risk Management in Procurement Study’, which surveyed 260 participants across various industries, in Europe and the UK.
Unlike previous years, when specific risks dominated procurement strategies, companies now face a poly-crisis where many issues – inflation, geopolitical instability, supply disruptions, compliance and environmental concerns – all hold equal significance.
These multifaceted challenges are forcing businesses to rethink their approach to risk management. Over the next five years, most companies surveyed plan to restructure their supply chains, adopting regionalisation and supplier consolidation as key strategies.
The study results indicate significant growth in taking a structured approach to risk management (from 56 percent in 2022 to 76 percent today) as well as in the definition of countermeasures (from 76 percent to 82 percent). Not as common is the use of digital tools and methods, with only 46 percent of survey respondents saying they use them to a large extent, and 40 percent describing their use as “partial”. The main technologies that companies invest in here are AI-driven analytics and early risk detection systems.
Emergence of poly-crisis
For years, procurement risk management has been shaped by only one or two dominant concerns, particularly inflation, energy costs or supply chain disruptions. While these issues remain relevant, companies now face a diverse range of additional threats – including price volatility, geopolitical tensions, regulatory changes and compliance obligations – that are equally important, making it difficult to establish clear priorities.
Apr-Jun 2025 Issue
Inverto