The ever-evolving landscape of procurement requires businesses to continuously adapt and innovate. Thomas Gaengler, Chief Procurement Officer at Mondelēz International, offers valuable insights into the current challenges and opportunities in the procurement sector. His perspectives cover organisational cost-cutting, talent recruitment and retention, sustainability issues, and sensitivity to regional differences.
Guarding Against Vulnerability
In the view of Mr Gaengler, effective procurement management is largely about mitigating risk while facilitating talent maximisation and improving performance on ESG-related metrics. “Before you do anything else in procurement,” Mr Gaengler advises, “you have to understand the environment that you’re in.” With current challenges such as inflation, climate events, and regional conflicts, uncertainty is a significant factor. This means simplifying the value chain ecosystem to reduce potential points of failure is crucial.
To navigate cost pressures from both governments and retailers, Gaengler recommends moving procurement to lower-cost locations. Near-shoring, off-shoring, and reshuffling suppliers can also strengthen business continuity. However, interactions with suppliers should be welcoming and generous. “Form close partnerships with your suppliers,” he says, “as relationships inspire loyalty, lowering the risk of trade disruptions even when unforeseen events occur.”
Providing a Home for the Best Talent
Successful procurement strategies hinge on having the right people. Gaengler notes a huge demand for project engineers, site management personnel, and AI-proficient talent. While remote work is popular, Gaengler pointed out that it can hinder meaningful integration within the corporate structure, necessitating compromises on both sides.
Globally mobile employees offer flexibility and long-term value to companies. Gaengler suggests that companies make preferences for mobility known and reward employees willing to relocate. Additionally, procurement departments should encourage DEI (Diversity, Equity, and Inclusion) initiatives at all levels, particularly in senior management. Understanding and sensitivity to varying cultural norms are key to successful DEI efforts, which can yield major benefits throughout the leadership pipeline.
Following Through on Healthy Values
Businesses attract hard workers and loyal customers by upholding responsible practices. Responsible procurement can set the tone for company operations, as waste reduction and other sustainability efforts improve brand reputation, reduce energy consumption, and enable future-proof supplier ecosystems. DEI initiatives also enhance community relations and corporate performance.
Good governance ties these efforts together. At Mondelēz International, procurement is central to business strategy, with the CPO engaging in daily meetings with the CEO to coordinate activities and enhance organisational agility.
“Not only do we follow the precepts of ESG,” Gaengler said, “but we also mandate our suppliers to know their suppliers and to drive ESG improvements on their side as well.” This ripple effect of positive influence enhances the broader operating environment.
Industry Adaptation and Future Outlook
Improved corporate governance means different things to different people. However, Gaengler’s approach demonstrates that a strong procurement strategy can drive significant value and resilience within an organisation.
As procurement continues to evolve, professionals must stay abreast of these changes, leveraging opportunities and mitigating risks in a dynamic landscape. By prioritising risk mitigation, talent maximisation, and ESG performance, procurement can drive significant organisational success.
Note:
This article is part of an ongoing series exploring trends in the procurement sector. Next, we’ll explore how modern management approaches. Can’t wait? Download the entire series as a report here.
About the Author:
Ben McDonald is a Co-Founder and Partner at Connexus Global. With a 20-year track record in recruitment, particularly in Supply Chain & Logistics, Ben partners with clients to secure top talent, driving their success in the Asia-Pacific region.
About Connexus Global:
Connexus Global is a specialised recruitment firm operating in Singapore, Bangkok, London, and Austin, focusing on the industrial, consumer markets, commodity trading, and renewable energy sectors.
