We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Procurement & Finance Executives Anticipate Negative Effects from Geopolitical Issues
Press releases are provided by companies as is and have not been edited or checked for accuracy. Any queries should be directed to the company issuing the release.

Upload your press release

Procurement & Finance Executives Anticipate Negative Effects from Geopolitical Issues

June 5, 2019
No Comments

A new report, What's Now and Next for Finance and Procurement? by The Economist Intelligence Unit and sponsored by Basware, has been released today. Conducted in February and March 2019, the report is based on the survey responses of more than 400 procurement and finance professionals in the U.S., UK, Germany and France. The report examines which emerging dimensions of three broad trends—shifting trade dynamics, automation and digitization—finance and procurement executives expect will affect their companies most; what their impact will be; and how they have prepared.

A key trend that surfaced was the concern of diminished company performance due to current global trade dynamics, namely due to increased procurement costs and greater supply-chain complexity.

Geopolitical Issues are Expected to Have Greatest Impact
When it comes to expectations regarding future trade trends, the two most widely expected to have the greatest impact within the next two years are post-Brexit trade negotiations (23%) and the escalation of the US-China trade war (21%). One respondent even expressed his fear of the lack of free markets in 10 years, seeing these trends as undercutting the progress made to date for globalization. Another source of concern is national barriers to digital trade, including censorship, localization measures and privacy regulation, which was cited by 13% of respondents.

Preparation is Driving Improvement in Internal Processes
Respondents expect trade dynamics to have negative effects, most commonly an increase in procurement costs (35%) and greater supply-chain complexity (29%). In preparation for these emerging dynamics in international trade, many respondents have focused on ensuring their internal processes and information gathering is as robust as possible. The most common preparation that companies have taken to meet the challenges arising from changes in global trade is to review internal controls and procedures (39%).

"With trade dynamics in constant flux, it's encouraging to see that finance and procurement executives are indeed taking proactive steps to avoid negative consequences to every extent possible," states Klaus Andersen, CTO and interim CEO, Basware. "Forward-thinking companies are seeking greater transparency in their supply chains," states Andersen.

"Basware is here to help companies gain visibility and control of their entire source-to-pay process, which enables companies to navigate trade complexities and changes," adds Sami Peltonen, Vice President of Products and Business Management of North America, Basware.

Optimizing Talent & Automation Trends
The report also highlighted trends in talent and automation:
• Digitization will reduce overall costs but also intensify competition for talent, respondents believe. Just under a third (32%) expect digitization to bring down costs, the second most commonly expected impact, but almost as many (31%) agree that recruiting employees with specialist digital skills will be critical to unlocking digital transformation in their organizations. Another trend is to train existing staff to expect and adapt to change.
• Procurement and finance executives expect that the automation of various finance and procurement processes will have the biggest impact on their organization, more so than AI-driven decision-making. When asked which automation trends were likely to have the greatest impact over the next two years, survey respondents most often selected "automation of payments" at 16%. Respondents think that higher-order functions such as decision-making are more immune from automation, for now at least. Only 5% of respondents selected the automation of supply-chain decision-making as having the greatest future impact.

More Info: https://www.basware.com/en-us/cpn/whats-now-and-next-for-finance-and-procurement

Submit your logistics, material handling, or supply chain related company news in Supply Chain Quarterly's's Industry Press Room section or New Products section
  • Related Articles

    Sandvik Material Technology re-engineers procurement and finance operations with Medius

    Three Executives from Elemica Named Supply Chain Pros to Know

    DISASTERAWARE ENTERPRISE UNVEILS NEW FEATURES - SmartAlert™, Geopolitical and Chinese Language

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Container prices continue to drop

  • How to resolve your inventory dilemma

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing