Kim Myung-hwan of LG Energy Solution says that the “rising cost of construction, shortages of skilled personnel and volatility in the price of the materials needed for batteries are all barriers to rapid growth“. Such an observation, affecting high level policy, might be heard from a top executive or corporate analyst. Other than that, what is remarkable about it?
Mr Kim is the company’s Chief Procurement Officer and his statement demonstrates something unnoticed in many organisations. Procurement is uniquely positioned to understand the future and to guide the leadership team on corporate strategy.
Most discussions in Procurement circles tend to be about transactions: price, digitised automation, leveraged value and that sort of thing. People get nervous and anxious when it comes to boardroom decisions, marking them out as tradesmen, rather than professionals. Not Mr Kim…obviously.
They seem to be missing something, don’t they?
Mr Kim’s statement is reported in an Economist article, ‘A battery supply chain that excludes China looks impossible‘, July 17th, 2023.