World leader gets to grip with global uncertainty
The global credit crisis led Pernod Ricard, the world leader in wines and spirits, to review its strategic sourcing training to ensure that procurement professionals were able to focus effectively on the impact of recession.
The programme was needed to help procurement professionals better manage their global contracts in the face of uncertain commodity pricing, the risk of inflation and/or deflation, and the potential for labour unrest in the supply chain.
ADR International, recognised as a leading authority in global procurement, was called in to lead the project.
ADR Learning, the training and development division of ADR International, designed a tailor-made course to enable procurement staff to deal with supply chain risk and to manage cost and currency.
The training identified new approaches to supplier management through the use of supply market and financial analysis tools and included workshop sessions on how to analyse financial statements to plan for negotiations.
Participants were shown how to examine real-life financial accounts to understand the market from the supplier’s perspective and learned how to spot sources of concern and opportunity.
They were enabled to analyse risks related to uncertainty over deflationary or inflationary pressures and given practical guidance on contracting in multiple currencies and managing the risk of fluctuation.
User-friendly workshops also gave participants real insights into demand and contingency planning in the event of civil or labour unrest in countries where their supply chains are located.
As a result of the project, Pernod Ricard was positioned more strongly to deal with the potential risks facing global organisations in uncertain economic conditions, and their procurement executives were able to approach the crucial business issues of financial risk analysis and contract planning with confidence.