#1 - compri bene reveal 🍿

If you thought procurement was boring--well, prepare to change your mind! In compri bene you'll find all the tips to turn procurement into a strategic adventure (without giant Excel and without yawns). In this first edition, we bring you news, insights with a hint of levity to make procurement smart, effective and, why not, fun!

Buckle up (or strap on your ERP), we're off! 💺🛫

🌍 Global Look

Choke Points: the bottlenecks that control global trade 🌍🚢

In maritime trade, there are obligatory passages called choke points (or bottlenecks) that are critical to the movement of ships between seas and oceans. These narrow channels, such as the Straits of Malacca or the Suez Canal, are crucial to the supply chain: having visibility into their status is key to minimizing risk.

Map of the world's eight major choke points (Source: Geopop)

Remember March 2021? The Ever Given cargo ship blocked the Suez Canal for seven days, halting about 400 ships and crippling $9 billion of maritime trade per day. We all hope there will be no repeat of such surprises, but in the meantime, given the criticality and complicit with climate warming, new routes, such as those Arctic routes, could become increasingly relevant, opening up new possibilities for trade, but also new challenges and competitions between global powers. Don't worry, if something happens, we will update you!

Strait of the moment in the spotlight 🔦

The Bab el-Mandeb Strait, just 20 nautical miles wide, is one of the most strategic points of world trade, located between the Arabian Peninsula and the Horn of Africa. Up to a quarter of global goods, including critical energy supplies for Europe, transit through here. However, recent attacks by Houthi rebels in Yemen involved in the regional conflict have forced many ships to make the long circumnavigation around Africa.

Fortunately, traffic is picking up: as of August 2024, 988 ships passed through Bab el-Mandeb, a 10 percent increase over the previous month, though still 60 percent below pre-pandemic levels. Freight rates from Shanghai to Genoa dropped 12%, but still remain 200% higher than a year ago. A sign that the situation is improving, albeit slowly.

Source: Geopop; National Geographic; The Maritime Gazette

💻 Tech in Procurement

SCALE: The tool that reveals critical points in the U.S. supply chain 🔍

The importance of supply chain monitoring is a fast-growing theme, so much so that the U.S. Department of Commerce has launched SCALE, a new tool to identify bottlenecks and hidden vulnerabilities in the U.S. economy.

Learning from past mistakes (recall the mask and semiconductor crises during the pandemic), the Department has gone all in on a proactive approach to strengthen supply chains. SCALE analyzes data on an industrial and geographic scale, taking into account geopolitical, environmental, and health risks.

An interesting example? The tool found that not only chips, but also cooling systems could become critical to national security, as they are essential to the proper functioning of the datacenters that train AI (and thus increasingly drive the global economy). Through these findings, SCALE is helping to ensure that supply chains are robust, primarily for these high-impact products!

With new strategic partnerships and a plan to expand its use, SCALE could become the hidden superpower of the U.S. supply chain. 🇺🇸

Source: Financial Times; US Department of Commerce

📊 ProcureStat: The Number That Counts

According to a survey by the Chartered Institute of Procurement and Supply (CIPS), 68 percent of procurement professionals believe their work is not adequately valued within their organizations. However, there are positive signs on the payroll front : 53% of respondents have received a pay raise, and of these, 27% have seen an increase of more than 9%. 📈

It seems that even if procurement does not always get the recognition it deserves, the numbers show an economic increase that suggests a greater appreciation for the profession! Let's go Procurement Superheroes!

Source: CIPS