Strategic Procurement as a Driver of Supply Chain Resilience in the United States: Frameworks for Cost Efficiency and Risk Mitigation

Abstract

Recently, we've experienced a lot of turmoil in our global supply chains due to things like pandemics and the conflict between Russia and Ukraine. Many supplies and services are available, but when something goes wrong in the supply chain, it can cause large disruptions. Strategic procurement has become a key factor not only to save money, but also to make sure that companies are able to meet their customers’ needs. This research looks into how procurement strategies can be designed in a manner that achieves a balance between risk and cost in complex supply chain networks that are interdependent with each other. The study uses both Transaction Cost Economics and Resource Dependence Theory to evaluate centralized, decentralized, and hybrid procurement approaches in the US. In addition, this study explores how digital procurement processes, approaches to diversifying supply chains and approaches to risk analytics may contribute to creating resilient supply chains. The authors argue that hybrid methods of procurement supported by advanced data-driven accountability provide the optimal framework to achieve efficiency and flexibility. This study develops both an empirical and conceptual framework to evaluate procurement performance in resilient supply chains.

Keywords: Strategic Procurement, Supply Chain Resilience, Risk Mitigation, Cost Efficiency, United States.