“Innovation” is far from a mere buzzword across so many industries, given the integral role it plays in the ability of all manner of organisations to survive and thrive.
An organisation that practises the highest standards of innovation – including through the development and implementation of new technologies, processes, and products – will be advantageously placed to enhance its competitiveness, bolster its adaptability, and further its growth.
This is before we even specifically mention the benefits that a culture of innovation can have for a given organisation’s efficiency and sustainability.
Indeed, this article will be placing a particular emphasis on how these aspects of a business’s operations can be optimised through ongoing innovative efforts by engineers and procurement leaders, and what the future likely holds.
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How Are Engineering and Procurement Interlinked, anyway?
There will always be a close relationship between engineering and procurement. After all, it is effectively engineers who provide the blueprint for what needs to be procured.
To elaborate slightly: engineers’ work to design products, systems, or projects dictates the particular components and materials that will be required, thereby providing a foundation for procurement activities.
By referring closely to the in-depth technical specifications that engineers develop for required items – encompassing such vital aspects as performance criteria, quality standards, and compatibility requirements – procurement teams can work to ensure they source the right components and materials from suitable suppliers.
5 Ways in Which Procurement Leaders and Engineers Are Bringing About a More Efficient and Sustainable World
Working together, here are some of the key approaches engineers and procurement personnel are taking to help deliver more efficient and sustainable outcomes:
- They’re Making Sustainability A Ground-up Priority
From the very beginning of the product design stage, today’s engineers are embracing sustainability as a central element of what they do. This is leading to innovative new methods for minimising energy consumption, drawing upon recycled materials, and making products easier to disassemble and recycle in turn.
- They’re Making Use of Relevant Online Tools and Calculators
Eschewing manual calculations, note-taking, and recordkeeping that can be time-consuming and isn’t always well-organised – and that can heighten the risk of lost, inaccurate, or out-of-date data – engineers are taking steps to improve efficiency with industry-standard calculators and measurement tools. Many such resources are easy to find online.
- They’re Integrating Artificial Intelligence Tech, Including Generative AI
AI continues to permeate almost all conceivable aspects of how organisations operate in the mid-2020s. Chief procurement officers (CPOs) are certainly among those, with a recent report having suggested about seven in 10 (68%) such professionals regard it as a top focus area.
In the words of Gartner’s Kaitlynn Sommers: “AI and generative AI offer transformative potential for procurement by automating routine tasks, enhancing decision-making, and enabling predictive insights.”
- They’re Partnering with Sustainable Suppliers
When procurement leaders are whittling down potential suppliers, they are increasingly favouring companies that have a track record of strong environmental and social responsibility practices.
If a given organisation only works with suppliers that have ploughed considerable investment into recycled content, renewable energy usage, and fair labour standards, this can help boost the sustainability credentials of the procuring company, too.
- They’re Upgrading or Optimising How They Use Existing Technologies
No responsible organisation should only ever be in “preparing” or “waiting” mode. In other words, they should not solely prioritise the future innovations that they might still be months, or even years, away from being able to fully adopt and implement.
This is why the work that engineers and procurement staff do to extract greater value from their current investments is so important. Such efforts to fully leverage present solutions can help the given organisation maintain efficiency and competitiveness. This, in turn, also better ensures it has enough resources to invest in new technologies.
