Mondelez International shifts procurement strategy toward supply-chain resilience in…
What happened
Mondelez International is adjusting its procurement operations in sub-Saharan Africa based on strategic work from McKinsey. The company's procurement function is moving away from a traditional model focused solely on tenders and price cuts. Instead, the new approach emphasizes supply-chain resilience, continuity of supply, and shared risk with suppliers.
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Why it matters
The shift means that the best commercial outcome is defined by more than just the lowest price. It now includes factors like quality, speed of response, and the supplier's ability to support the business during volatile times. This change reflects a broader need to understand risk across the entire supplier ecosystem.
Mondelez International is concentrating its efforts on sub-Saharan Africa and is appointing leadership for Central Africa growth.
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Who's involved
- Mondelez InternationalConducts procurement operations and business in sub-Saharan Africa.
- sub-Saharan AfricaThe region where Mondelez International conducts procurement operations.
- McKinseyProvides strategic consulting services that inform Mondelez International's procurement strategy.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- sub-Saharan AfricaSpeculative
The shift to resilience-focused procurement could change economic dependency and investment structure in sub-Saharan Africa.
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The entities involved
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Mondelez International
American multinational confectionery, food and beverage conglomerate
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sub-Saharan Africa
area of the continent of Africa that lies south of the Sahara Desert
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McKinsey
family name