Navigating Disruption with Data & Innovation

Building Global Procurement Networks: Mastering Data and Demand

At the heart of any successful global procurement strategy is a clear and comprehensive understanding of demand and the ability to manage data effectively. Gora emphasizes that the foundation of a robust procurement network lies in the company’s ability to analyze data accurately, get transparency, and categorize its material needs by different material fields.

“It’s all starting with data. If you don’t know your demand, if you don’t know what you are purchasing on a global basis, you have no ability to achieve a reasonable result”, Gora explains. For large corporations, this involves structuring purchases into distinct categories like direct and indirect materials, which allows for a better understanding of market needs and a more efficient procurement process. Smaller companies often face challenges in achieving this level of organization, which can hamper their ability to negotiate, manage supply chains, and risks effectively.

To develop a successful global procurement network, companies must first group materials based on technology and key market demands. Gora uses an example from healthcare, where specific materials like helium are critical for products like MRI machines. By focusing on these essential materials, businesses can establish relationships with suppliers and better manage their resources. This strategic approach to grouping materials and assessing demand allows organizations to optimize procurement processes, engage with suppliers more effectively, and create long-term cost savings as well as achieving a stable and robust supply chain.

Once demand is clearly categorized, Gora stresses the importance of early involvement from procurement teams in the product development phase. “If a bill of material has already been finalized, and you start procurement later, you won’t reach a good result”, he says. Procurement teams need to work closely with product development and engineering teams from the outset to ensure that sourcing strategies align with the company’s larger goals. This collaboration helps avoid inefficiencies and ensures that procurement decisions contribute to product success. Early involvement is key to achieve targeted and competitive product costs.

Overcoming Supply Chain Vulnerabilities: Lessons from the European Gas Crisis

In 2022, the European gas crisis posed significant challenges for companies operating in industries dependent on chemical materials, including Siemens. Gora’s experience in managing the procurement risks associated with the gas crisis offers critical lessons in how companies can protect themselves against similar supply chain disruptions in the future.

“It was clear early on that this crisis was not going to be short-lived, and the impact on the European energy markets would be severe”, Gora recalls. In response, Siemens launched a comprehensive risk mitigation strategy that focused on securing key materials, such as chemical resins, that were essential to production. The strategy involved building an emergency stockpile to ensure continued operations even during gas shortages.

This proactive approach allowed Siemens to avoid production stoppages during the crisis, a feat that many other companies struggled to achieve. Gora explains how his team identified which materials required additional stockpiling by analyzing which products could not afford disruptions. “We set up a plan for which resins should be stocked for one or three months, depending on how fast we could shift to alternative sources”, he explains.

Moreover, Gora’s team also leveraged relationships with key suppliers to escalate procurement needs when material shortages became critical. Establishing strong partnerships with suppliers and maintaining open communication were crucial in ensuring that Siemens was prioritized during shortages. “The management contacts you build in times of stability pay off during crises“, he says. This approach demonstrates the importance of long-term supplier relationships and proactive planning in managing supply chain risks.

Navigating Healthcare and Energy Management: Emerging Trends and Technological Disruptions

Gora’s extensive experience across multiple industries provides him with a unique perspective on the trends shaping healthcare and energy management today. With technological advances such as artificial intelligence (AI), digitalization, and automation gaining ground, industries must be prepared to adapt quickly.

In the healthcare sector, Gora notes that demand for diagnostic imaging is rising as populations age, and healthcare systems struggle to cope with increasing costs. “50% of the world’s population still don’t have access to affordable healthcare, and providers need to deliver products that can function even in resource-limited settings”, Gora explains. For companies involved in healthcare, this means developing technologies like MRI machines that can operate with limited helium, or diagnostic tools that leverage AI to assist in disease detection and reduce the cost of care.

AI is a driving force in healthcare innovation. “AI gives you a lot of means to forecast diseases and to analyze diagnostic images more efficiently”, says Gora. The use of AI in medical imaging helps physicians gain second opinions and enhances their ability to interpret complex data. As AI continues to grow, healthcare providers will need to focus not only on hardware innovation but also on developing software solutions that can deliver real-time insights and value.

In energy management, the growth of renewable energy sources has transformed how energy systems operate. Gora observes that the energy landscape has shifted dramatically from centralized systems to more decentralized models, with consumers often generating their own electricity through solar panels or wind turbines. This shift requires advanced software to manage and stabilize energy grids. “The traditional high-voltage energy system has become more unstable due to decentralized production, and software is critical in managing this complexity“, Gora explains.

Smart metering and energy management software are key trends shaping the future of the energy sector. Consumers now can manage their energy use in real-time, optimizing when appliances like dishwashers and washing machines run based on energy prices and availability. This level of control is revolutionizing how consumers interact with their energy providers and is driving demand for more sophisticated energy management solutions.

Harnessing Innovation: The Role of AI and Data in Business Transformation

Beyond industry-specific trends, Gora emphasizes the transformative power of AI and data analytics across all sectors. Companies that invest in these technologies are better equipped to handle disruptions and identify new opportunities. For Gora, integrating AI into procurement processes was a game-changer during his time at Siemens.

“We launched a robot for C and B demand, automating the process to cover the tail end of procurement where suppliers often aren’t interested“, Gora shares. The use of AI in procurement allowed Siemens to optimize efficiency, reducing manual interactions and automating routine tasks. This shift not only improved cost savings but also allowed procurement teams to focus on more strategic activities.
Gora’s advice for companies looking to leverage AI and data is clear: start by focusing on transparency and data accuracy. “If you don’t have data transparency, you can’t make informed decisions”, he stresses. By ensuring that companies have access to accurate data, they can make smarter procurement choices, identify cost-saving opportunities, and improve supplier relationships.