| | March 20178CIOReviewIN MY OPINIONProactive Measures to Streamline ProcurementBy David Hammerle, VP Procurement and Contracts, Bechtel Corporation1) What according to you are the current market trends shaping the Procurement space?Procurement is undergoing substantial changes, with some industries affected differently than others. Here are some of the more notable trends that we have identified and are taking proactive measures to address in line with our emphasis on innovation at Bechtel: · Digital transformation: The EPC supply chain has not seen significant changes in the last 25 years, but digital transformation and relying on data instead of paper will result in an enormous shift over the next several years in terms of increasing efficiency and reducing costs. At Bechtel, we have already implemented a "digital supply chain" which has paid dividends through improvements to our productivity, data analytics, digital records to include drawings and procedures, and giving us the ability to engage in direct digital interface with suppliers. The end result being a more satisfied customer.· Innovation and technology: At Bechtel, we are taking pioneering steps in the innovation arena in order to ensure that we are bringing in new technologies and methodologies to lower costs and improve on quality such as the use of smart glasses, drones, and mobile solutions. 3D printing will certainly play a large role in our supply chain. And companies, no matter the industry, will need to continue to place greater reliance on suppliers to identify innovative approaches and seek out further cost reductions. · Market volatility: Markets have been fairly stable over the last five years, but going forward, there are large uncertainties related to trade, regulations, and other factors. Having experts who can follow trends to manage this risk is essential. We are also updating our tools and skill sets to be more resilient to external changes to ensure that we will be in a stronger position to effectively navigate through market shifts or when other unforeseen events occur.· Supply Chain Sustainability: Many companies, Bechtel included, are taking on the challenge of increasing their roles with respect to contributing to local economies, protecting the environment, and providing for the safety and health of workers. Chief Procurement Officers are advancing sustainability in their supply chain to have a positive impact on society. At Bechtel, we see this as investing within the communities in which we work. You can read more about our efforts in our just released sustainability report.
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