Monthly Round Up: May 2019
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Can We Make Procurement Relate-able
Walgreens the Latest Company to Appoint Supply Chain Leader
Walmart Plans to Roll Out One-Day Shipping, Too
Procurement professionals have all been there: glossy-blank stares and awkward smiles after you finish explaining what you do for a living. I’m sure we’ve all tried to explain procurement and strategic sourcing in many creative ways over the years, and somehow we still struggle with getting it to resonate. This blog explores that struggle and calls for a more human Procurement profession.
The United Kingdom (UK) is looking to depart from the European Union (EU) this October and that could be a big problem for the country's public health supply chains. The EU allows 28 member states to trade interchangeably with each other and has shaped UK’s trade since 1993. With a separation from the EU, the UK could become a ‘second tier’ state for pharmaceutical imports, potentially leading to a medication shortage for the country. To make matters worse, the European Medicines Agency (EMA) has relocated from London to Amsterdam due to the departure. The EMA has been forced to abandon key initiatives due to staffing since many employees left the agency after refusing to relocate. The exact state of the UK come October is uncertain, but costly consequences seem imminent.
Companies everywhere, from Walgreens to Macy’s are putting a focus on their Supply Chain Management. Acquiring over 1600 Rite Aid locations, Walgreens has filled at least three new executive roles this year to cover the rapid change in business areas, one of which was a Chief Supply Chain Officer.
The sweeping trend to eat clean is heavily influencing the fast-food and restaurant industry. Many restaurants like White Castle and Red Robin have already introduced Impossible Foods’ plant-based burgers—Burger King is the latest to include an Impossible burger on their menu. Fifty-nine Burger King locations are currently test driving the Impossible Whopper and assuming a positive embrace from customers, BK plans to optimize its supply chain to make the plant-based burger available to everyone in the country. While not many Americans have completely converted to a plant-based diet, about half have declared an increase in eating more fruits and vegetables. With this ongoing trend, the food industry will have to respond accordingly.
Walmart responded to the pressure put on by Amazon's free, two-day shipping announcement with an announcement of their own. Breaking the news through Twitter, Walmart made an obvious dig at the fact that Amazon only offers such a service to Prime members paying over $100 a year. The retailer has a huge footprint and only needs to add eight more distribution centers to make next-day a reality, according to Bloomberg.