The 2024 state of Agile in Procurement and Supply has now been published!
Download the full report here: global annual Report State of Agility in Procurement & Supply — LAP Alliance (lap-alliance.org)
Join Mirko Kleiner, President & Thought Leader LAP Alliance and Simon Reindl, Executive Board Member LAP Alliance and Eric Naiburg, COO Scrum.org as they discuss the findings and what it means in the year ahead.
Register for the webcast here: Procurement and Supply Chain in Agile Transformations: Emerging Trends 2024 | Scrum.org
We will also reflect on future trends in Agility in Procurement, Supply and Finance.
Key Trends
The key trends that we observed from this years survey is that there is growing recognition that coordinated supply networks, or ecosystems will enable flexibility and adaptability for an organisation. Many products and services require collaboration with multiple partners, and building a contractual model that supports each company achieve success is mutually beneficial.
The people who responded to the survey were from around the world, and a range of sectors. It was roughly balanced between buyers and suppliers.
Many of the organisations are at some stage of agile adoption, and this is now being applied to finance, procurement and supply.
Agile contracts
This remains as an area that will need more investment in order to improve adaptability. Roughly three quarters (73%) of contracts are not updated after the initial issue. 98% of contracts are never updated or reviewed every 6 months.
If your team is requiring change every Sprint (less than a month, typically 2 weeks), and your contract is never updated - this will hold back your organisation in delivering time to market.
Mobilisation
Over half of the respondents need several months, to over a year to mobilise a multi partner system.
The top 3 factors that are affecting this are Trust, Cultural and Social fit, and concerns over Intellectual Property.
This creates a massive delay in getting started.
Executive Support
There was a very low number that were including strategic partners in their agility adoption. Only 13% of the respondents were supported with their agility adoption efforts at the c-level. The significant majority were at team or project level. This results in agile "bubbles" within the organisation, not a strategic adoption.
Where there were efforts to work collaboratively across organisation, the top activities were to improve knowledge sharing, education and coaching across companies.
Conclusion
There are huge parallels with the State of Agile report, particulary in the need for executive support, and building the skills and confidence to implement agility effectively.
It is clear that the commercial benefits of adopting agility in procurement and supply does deliver significant Return on Investment by enabling faster time to market, and greater adaptability once in place. It is also clear that this is a novel approach for this business area.
There will be time for questions during the session.
Looking forward to hearing from you then!