
What Changes to Expect in Procurement in a Post-COVID-19 World
The importance of procurement has never been greater. Procurement and commercial teams need to utilize this opportunity to reposition itself as a critical function of any part of the organization that involves external suppliers.
By
CIO Applications Europe | Friday, August 21, 2020

The importance of procurement has never been greater. Procurement and commercial teams need to utilize this opportunity to reposition itself as a critical function of any part of the organization that involves external suppliers.
Fremont, CA: The COVID-19 pandemic has disrupted the usual way of life like no one could have imagined. The impact of the pandemic resonates across all aspects of life, from businesses to daily life. Businesses across all sectors have been forced to rethink their business strategies to be able to function again. Social distancing and no contact preferences have set new standards in various industries. Business owners need to comply with a plethora of new rules and regulations if they want to stay in business. The retail sector has also been severely impacted by the virus and is adopting new methods to overcome the challenges posed. Technology holds the key to the future, and businesses need to leverage the newest industry trends to ensure their business can thrive under the new challenging market conditions. The same goes for the procurement sector.
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Here are a few changes that the procurement sector must undergo to do business in these changing times.
Business Mission and Vision
The evolution process must start with the renewal of the business’ mission and vision and clarify the why and how. The importance of procurement has never been greater. Procurement and commercial teams need to utilize this opportunity to reposition itself as a critical function of any part of the organization that involves external suppliers. It is necessary to ensure that procurement is not just seen as a cost-cutting function, but as a peer to supporting risk and operations management, with board access and management.
Roadmap to Change
Procurement departments need to agree upon a renewed vision and mission. Once this is done, it is necessary to note down each of the ROI operating model areas to help build a detailed roadmap for change. While the goals should be to take the company forward, it is also unrealistic to strive for absolute perfection. These are changing times, and the road ahead will be laden with challenges. Firms should instead focus on transitioning to an operating model that fully accommodates the extreme levels of uncertainty.
Relationships and Skillsets
The way employees interact with colleagues will have changed. Localization, transparency, and collaboration will be the new normal, and these require different skill sets in addition to the current supplier management approaches. Empathy will emerge as a critical skill in managing suppliers. A detailed understanding of the commercial and operational reality for the whole supply chain is necessary, and people move beyond self-preservation as that has been proven not to work.
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