Redefining Procurement Strategies In a Post Covid-19 World

There is no question that we face an increasingly volatile world, but in adversity lies opportunity. The COVID-19 pandemic has ushered in a time of great uncertainty, defined by volatility across the economy and supply chain. As we manage through and learn to cope with the challenges presented by the COVID-19 pandemic, we thought it was important to dig deeper to understand the mindset, strategies, and challenges that are facing CPOs and procurement leaders.

With the pandemic and associated economic slowdown, nearly all industries are viewing cost and cash management as essential. In addition, organizations are addressing and managing extreme risk and supply continuity issues For example, hospitals have adjusted their capacity of personal protective equipment (PPE) for spikes in infection and mortality rates as they continue to fluctuate, procurement and distribution of the vaccination, while working in sync with the directives provided by the Government Bodies.

The COVID-19 pandemic has provided a unique opportunity to gain insight into what the most effective procurement leaders do to respond during times of uncertainty and thrive in the long term. While many CPOs have not had much time to pause and reflect on which systemic, long-term changes they will need to make in order to adapt and thrive,

A focus on the following areas will be critical for success:

• Developing smarter ways to illuminate and act on risk intelligence regarding suppliers (at all tier levels)
• Rethinking sourcing strategies based on risk and building more robust mitigation plans
• Increasing risk-sharing and/or performance-based contracting
• Enhancing value delivery from strategic partners through collaboration and supplier development programs
• Building a flexible and connected digital infrastructure supported by clean and accurate data
• Establishing scenario modelling capabilities to enhance planning and resiliency

Your organization’s ability to reallocate resources as and where necessary, maximize supply chain visibility, and establish robust yet adaptable supplier relationships allows you to drive effective and rapid decision-making and not only manage disruption as it arises, but thrive in it.

The Post graduate Diploma in Management, Executive, with specialization in Procurement and Contract Management offered  by AIMA and technically supported by the World Bank,  aims to equip the working executives with requisite tools and personal skills much needed in these times. From being able to strategize of making the organisation’s supply chain more efficient and assist in better understanding of procurement contracts. This is a program initiated and designed with the technical support of the World Bank. For more information about the program you may visit https://pgcourses.aima.in/programs/pgdm-executive-in-procurement-contract-management