Tashkent, Uzbekistan (UzDaily.com) -- KPMG Caucasus and Central Asia presented the results of a survey of procurement function leaders in the annual CPO Outlook 2024 study. The material analyzes the state of the supply function in Kazakhstan and Uzbekistan and their readiness for future challenges by the end of 2023.

The survey involved 49 respondents from various sectors of the economy of Kazakhstan and Uzbekistan, including heads of supply departments, purchasing specialists, logisticians, economists and supply chain managers.

KPMG experts have identified seven key trends contributing to the development of the procurement function:

Supply chain sustainability. Modern supply chains are exposed to a variety of threats and risks, which can lead to supply disruptions and negatively impact business processes. The study indicates risks for the next 3-5 years.

Localization and shortening of supply chains. These approaches are becoming key trends driven by the current market situation. Companies are looking at localization and chain reduction as strategic measures to improve sustainability and reduce the risks associated with global logistics.

Digitalization of supply chains. This opens up a wide range of opportunities, making supply chains more efficient in volatile environments by responding to changing conditions in a timely manner.

Development of human capital. Employees are the company’s main asset. Employee skills and competencies require development in the digital age to effectively complete tasks and adapt to changing supply requirements.

Inventory planning and management. The optimal ratio of service level and inventory allows companies to ensure uninterrupted business operations, increasing inventory turnover and optimizing working capital.

Category purchasing management. This strategic approach allows businesses to systematically manage procurement by categorizing it to optimize costs and improve operational efficiency.

Green and circular supply chains. Integrating ESG principles into the supply chain promotes environmental efficiency, social responsibility and ethical management, which increases companies’ potential for sustainable development.

The CPO Outlook 2024 study found that supply chain leaders are facing unprecedented challenges such as the pandemic, geopolitical tensions, economic volatility and supply chain disruptions creating a new reality. However, new opportunities are also opening up for them, the success of which depends on the ability to adapt to changing conditions, master new technologies and methods of work, which increases the role of strategic procurement.