ReleaseWire Connect

Technology has a key role to play in transportation logistics planning and management - and can revolutionize existing processes and practices. As a result, the market for transportation logistics management software is expanding fast. Transportation logistics management software provides transparency when it comes to daily transportation operations, trade compliance information and documentation, and ensures the timely delivery of freight and goods. It can considerably reduce the burden of admin on organizations by streamlining paperwork. Technology-based logistics platforms also allow for more outsourcing of key elements to help save time and resources. There are many different projects currently entering the market for transportation management software. For example, Wal-Mart Canada Corp. has developed a blockchain-based supply chain management solution, which includes features such as freight tracking and payment processing for around 70 trucking companies. The innovative system integrates a wealth of advanced tech, from IoT sensors to GPS tracking systems.

As a procurement headhunter, DSJ Global is keenly aware of the challenges faced by those leading procurement teams today - and the demands placed on those teams to continuously improve efficiency and deliver more value through the supply chain. Equally key is engaging with the supply base to help organizations achieve vital ESG goals. Companies are increasingly looking to implement ESG targets more widely and that is feeding through into every area of the business, especially when it comes to working with supply chain partners with similarly aligned objectives. It's becoming increasingly important for a procurement team to be able to gain a better understanding of partner organizations to see where commonalities exist. Technology is a critical solution to many of the challenges procurement faces today - but so are people. Most firms see building team capability as an equally important investment when it comes to steering evolution in the coming years.

Renewable energy has very much become a seller's market with global corporate procurement setting records in 2021. Even though power purchase agreement prices continue to rise there seems to be little chance of this trend slowing down. In 2021, corporations worldwide purchased just over 31 GW of renewable energy, which was a record in itself and an increase of 24% on the previous year (which was also a record at the time). This puts renewables at the head of energy procurement demand among corporate buyers. There are many factors involved in these record-breaking numbers, including the fact that there remains a backlog in clean energy from the delays that were caused by the pandemic in 2020. In addition, the demand is being driven by the expansion of clean energy goals among corporate buyers, with many moving from simple improvement goals to the more comprehensive net-zero standard.

When the Infrastructure Investment and Jobs Act was signed into force in November 2021, it brought with it a new focus on hydrogen as a vital part of the energy resources of the USA going forward. The new law included specific provision for a number of measures to shift the focus onto hydrogen, including Section 813, which covers the provision of $8 billion for the creation of at least four Regional Clean Hydrogen Hubs and a new Section 816 to provide $1 billion for a Clean Hydrogen Electrolysis Program. The new law also put time frames in place in which the Department of Energy (DOE) will need to start actioning the provisions of the Act. As a result, it has now taken the first steps to implement hydrogen procurement programs, issuing requests for information from both the industry and energy users. The next stage in the process is for the DOE to issue a Funding Opportunity Announcement, after which the process of implementing the programs can get underway.

Leading the way in green procurement was at the center of an executive order recently signed by President Biden. The order focuses on ensuring the government is using public procurement to model sustainable, environmentally-sound purchasing to reduce greenhouse gasses and other forms of pollution. The order also established long-term goals in targeted industries, such as electric power and water, and as a result sectors such as these are likely to see stricter federal procurement sustainability requirements.

Green power in America has some of the firmest foundations that it has ever had to work from in 2022. An eco-minded president and some significant targets at both federal and state-level mean that US renewables procurement is a very hot topic right now. There is plenty of inspirational competition, too, from countries such as China, which recently took the title of largest offshore wind market from the UK. Key to the renewable future in America will be areas such as the Central Atlantic zone - and equally important will be the supply chains and procurement that support the way in which renewables projects evolve.

Supply chain infrastructure has become a key focus in the past year and now a new project is going to improve the situation in the Southeast. Named the 'Alabama-USA Corridor,' the program is designed to improve the infrastructure that connects the Port of Mobile to Birmingham and then the entire Southeast. The focus on improving rail connections in supply chain infrastructure has become increasingly important, as the past 10 years have seen a swift uptick in business at the port. A $231 million investment will be required to bring the Alabama-USA Corridor to life and the first phase is likely to cost somewhere in the region of $71 million.

Oversight and data are vital aids for any extensive organization today - especially the US military. For the US Air Force, the Integrated Logistics System provides this, whether you're looking for information on the number of aircraft tires or satellites. But the functions of the system go much further than that, as it also has a part to play in ordering, storage, tracking and movement of supplies, as well as organizational account management, financial reporting, inventory control and contractor-provided weapon system support.

Military procurement is a vital part of the sector when it comes to procurement jobs. It has been announced that Northrop Grumman has won a $354 million U.S. Navy contract to supply aircraft for the French Navy. The aircraft in question are three E-2D Advanced Hawkeye airborne early warning and control aircraft. The procurement is going ahead under a Foreign Military Sales (FMS) agreement between the French Defense Procurement Agency and the U.S. government. Production will start on the aircraft in 2024 and it is thought that the three planes could be the last ever E-2Ds to come off the production line.

As a procurement headhunter, we are always focused on incoming trends that could affect the landscape of procurement in the years to come. For 2022, there are some key developments to watch, including much more of a focus on risk management in order to protect supply chains going forward. Another big trend for this year is increasing investments in IT solutions, something that is being prioritized by businesses keen to ensure that the IT infrastructure in place is resilient enough and able to support swift change.