PLANET
Weise on Weise
“ I joined BCG in 2003 , just after the tech boom and bust . Since then , the world has experienced some turbulent times : the financial crisis which led to the Great Recession , the UK ’ s departure from the European Union , the US-China trade war , a once-in-a-century global pandemic , and now , with the war in Ukraine , the first conflict between neighbours in Europe since the Second World War .
During this time , BCG has grown exponentially , as demand for its consulting advice has increased , and I have taken every opportunity to work across different industries ( in particular the industrial goods and energy sectors ) and different regions . Above all , I have specialised in procurement and supply chain management , and now serve as BCG ’ s global leader for procurement .
I studied procurement at university as part of my degree in business administration . But the big triggers for my developing interest in procurement were two separate events . First was Russia ’ s annexation of Crimea , Ukraine ’ s peninsula on the Black Sea , in 2014 : this foreshadowed some of the global supply issues we ’ re now seeing – for instance , the price of neon gas , a by-product of the Crimean steelmakers that is essential for the manufacture of semiconductors , increased by 600 per cent . The second was the United Nation ’ s Paris Agreement in 2015 : this set a new benchmark for carbon emissions that completely changed the game for business and made climate change a CEO imperative .
I realised that on both of these issues – the resilient supply chain and sustainability – procurement needed to have a bigger voice around the boardroom table . It is only there , where the big decisions are made , that procurement can make a meaningful contribution to the strategic direction of the company .” by appointing the CPO on their first day in the top job , choosing someone who could be their successor , and installing them in an office next to or near their own . Also , CEOs should revamp their procurement function .
BC : How important are procurement and supply chains in 2022 ? DW : I would say : Is there anything more important for business , and indeed political , leaders this year ? The world is facing a potential humanitarian crisis , with some 400 million people reliant on the grain produced by Ukraine , the bread basket of Europe . Meanwhile , with factories closed , and vital ports ( such as Shanghai and Los
Angeles ) either closed or severely impaired , companies are struggling to get the raw materials , oil and gas , and essential parts they need to make their products .
In the automotive industry , for example , the shortage of semiconductors is having a severe negative impact . In 2021 , automakers cancelled plans to build ten million cars . This year , we forecast that they will cancel a further seven or eight million vehicles . And that won ’ t be the end of it . Next year , we anticipate that they will cancel four million automobiles , as demand for semiconductors outstrips supply by 10 per cent . It all goes to show that without functioning supply chains , the global economy grinds to a halt .
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