In this discussion, Luke van der Waals, Demand-to-Deliver Value Stream Owner at SLB, dives into the complexities of global supply chains in the energy sector. He candidly addresses how geopolitical tensions and inflation reshape procurement strategies. Luke highlights the necessity of resilience and balancing local sourcing with global factors. He also explores how data is essential for decision-making, emphasizing technology's role in enhancing efficiency and navigating procurement challenges amid international conflicts.
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Quick takeaways
Global supply chains are increasingly vulnerable to challenges from geopolitical tensions and inflation, necessitating resilient procurement strategies for organizations like SLB.
Leveraging data and technology is crucial for optimizing procurement, enabling proactive decision-making and improving efficiency in a complex global landscape.
Deep dives
Global Supply Chain Challenges
The complexities of managing global supply chains have intensified due to various geopolitical tensions, inflation, and post-pandemic disruptions. Companies in the energy sector, such as SLB, face heightened challenges in ensuring resilience and reliability in their procurement processes as trade barriers and shipping bottlenecks affect operations. The interlinked nature of these challenges means that procurement teams are tasked with not only sourcing materials at the best prices but also navigating unexpected crisis points that could disrupt the flow of goods. As businesses adapt to these evolving circumstances, there is an increased focus on the need for a resilient supply chain that can withstand both economic and geopolitical fluctuations.
Impact of Inflation on Procurement
Inflation has emerged as a significant concern for procurement organizations, complicating margin management and cost control. The interplay between international conflicts and inflationary pressures can lead to delays in product delivery, thereby escalating shipping costs and impacting the overall supply chain. Organizations are compelled to explore local content requirements within various markets as a means to mitigate logistical costs and ensure compliance with regional expectations. However, this local sourcing can be challenging due to supply deficiencies, underscoring the delicate balance procurement teams must maintain in managing costs while ensuring operational efficiency.
The Role of Data and Technology in Procurement
Leveraging data and technology is becoming increasingly essential for optimizing procurement processes in a complex global landscape. Organizations are moving towards structured data management practices that facilitate better supply chain design, cost prediction, and planning. Successful implementation of analytical tools allows procurement teams to respond proactively to market changes and identify future opportunities within the supply chain network. As automation and AI technologies evolve, they are expected to significantly enhance decision-making and operational efficiency, allowing procurement professionals to focus on strategic negotiations and supply chain optimization rather than routine tasks.
Today’s guest is Luke van der Waals, Demand-to-Deliver Value Stream Owner at SLB. SLB is a global technology company driving energy innovation for a balanced planet. They are the largest offshore drilling company by revenue as of 2022 and were ranked 349th largest company globally by the Forbes Global 2000 list that same year. Luke joins us on today’s show to explore the evolving complexities of global supply chains and procurement. He shares insights on the challenges of maintaining resilience amid geopolitical tensions, inflation, and post-pandemic disruptions—especially in the energy sector. Luke also offers a candid look at how global conflicts amplify supply chain risks and emphasizes the importance of balancing local sourcing with global constraints to control costs and ensure seamless operations. This episode is sponsored by Arkestro. Learn how brands work with Emerj and other Emerj Media options at emerj.com/ad1.
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