CPO Outlook 2024

KPMG Caucasus and Central Asia has unveiled the results of its annual CPO Outlook 2024 survey, focusing on procurement function leaders. The report includes an analysis of the state of procurement functions in Kazakhstan and Uzbekistan for 2023 year, as well as their readiness for future challenges. A total of 49 respondents from various sectors of both countries participated in the survey, including procurement department heads, purchasing specialists, logisticians, economists, and supply chain managers.

According to the research results, KPMG experts have identified several key trends directly affecting the development of procurement functions. There are some of them:

The current situation reveals that supply chains are exposed to a growing number of threats and risks, which can lead to unforeseen supply disruptions with negative impacts on business processes. The results of our research indicate the existence of a number of risks over the next 3-5 years. Among them are threats of supply disruptions, rising prices for goods and logistics, economic problems and a decrease in demand for goods. To meet these challenges, it is essential to transform the supply function so that to ensure its greater flexibility, adaptability, and sustainability.

Localisation and supply chains optimisation are becoming key trends driven by the current market situation.  Many companies have been increasingly using these approaches as strategic measures to enhance resilience and reducing the risks associated with a supply chain disruption. Localisation allows to reduce time and cost of delivery and improve control over delivery time. Shorter supply chains ensure higher flexibility and adaptability, which is especially important in a rapidly changing environment.

Digitalisation of supply chain offers a wealth of possibilities to access a diverse range of supply chain capabilities. In volatile environment it can play a pivotal role in enhancing supply chain performance by enabling a swift and effective response to rapidly changing conditions. Automated systems and use of algorithms to accurately analyze data can also contribute to greater transparency throughout the end-to-end supply chain process.

Employees are the company’s greatest asset in the digital age. Therefore, it is essential to develop their skills and professional competence to prepare them for effective performance of their tasks and adaptation to changing supply chain requirements. It is crucial to focus attention on continuous training and personnel growth through the adoption of contemporary educational programs and technologies.

The CPO Outlook study identified several key challenges faced by supply function leaders, including the risk of a pandemic and associated quarantine measures, geopolitical tensions, and high economic volatility, all of which necessitate rapid adaptation to new realities. Concurrently, our research highlights new opportunities that can be seized by adjusting to these changing conditions and embracing innovative technologies and working methods, thereby reinforcing the critical role and importance of strategic procurement.