Procurement, early warning systems, and the next disruption

By Felix Kaiser, Marc Sommerer, Stefan Thimm and Jan Vandaele · McKinsey & Company · 2022 · CFE201-106-25

A McKinsey article of May 2022 on how procurement leaders at industrial companies can avoid product shortages and mitigate the effects of price volatility. It says procurement departments need a comprehensive view of their supply chain vulnerabilities, organized around their companies' product lines, and describes an approach built on three potential problems: absolute-shortage risk, supplier risk and inflation risk.

On the syllabus

Exam CFE-201 — outcomes 3c.

First risk scenario: Absolute shortage

Second risk scenario: Supplier defaults

Third risk scenario: Out-of-control inflation

The end goal: A business continuity heat map

Sources

Procurement, early warning systems, and the next disruption (McKinsey & Company, 19 May 2022) — the document: title, authors, date, opening paragraphs and section headings; read through McKinsey's Brazil site, which serves the same article, because mckinsey.com refused automated fetches (mckinsey.com.br copy)
CFE 201 Syllabus, Mar 2027/Jul 2027 (SOA) — the reading (CFE201-106-25: Procurement, Early Warning Systems, and the Next Disruption) and its learning outcomes
CFE 201 Introductory Study Note, March 2027 (SOA) — the study-note code CFE201-106-25 and its title