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She notes that procurement teams typically purchase components rather than commodities directly, leading to a lack of visibility over raw material costs embedded within those components.
Tilley emphasises the importance of upskilling procurement professionals and equipping them with digital solutions to navigate this complex environment. These tools, including generative AI (Gen AI), can automate market monitoring, making it easier to identify potential price spikes and take swift action.
“Companies can achieve significant cost savings by gaining a comprehensive understanding of their supply chains,” adds Lina.
However, investment in high-quality data, system integration and employee training is essential for these technologies to deliver meaningful results.
Beyond digital tools, Lina highlights the value of involving procurement teams early in product development. This proactive approach ensures raw material considerations, such as price stability and supply security, are factored into product design.
As supply chain dynamics continue to evolve, procurement teams must be empowered to add strategic value. Through better training, enhanced tools, and closer collaboration across business functions, these teams can help companies mitigate risks and seize opportunities in the face of rising material costs.
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