How Procurement can help companies emerge stronger post-pandemic

How Procurement can help companies emerge stronger post-pandemic

During the COVID-19 pandemic the vulnerability of supply chains has been exposed. And while a few companies have experienced growth spurts as a result of the pandemic, many more have seen significant declines in turnover. We have also seen how vulnerable people are to disruption, as most employees have been forced to work from home while managing very challenging personal situations. So, is there anything Procurement, as a profession, can do to help organisations and employees facing these challenging circumstances?

Yes, there is! Making the supply chain more resilient and responsive is well within Procurement’s grasp. Over the years there has been lots of talk about digitising the supply chain in a way that integrates process into a holistic digitally enhanced ecosystem. And while many companies have adopted e.g. cloud technologies, the Internet of Things, big data and 3D printing, the supply chain remains one of the least digitised areas of most businesses.

A “new” way of working with suppliers

And that’s a great shame, because a digitised supply chain brings with it more transparency, seamless communication, new insights, more flexibility and speed. All things that would have been useful to enable companies to react quicker and more effectively to the challenges presented by the pandemic. For those companies that now want to do things differently, Procurement is well placed to advice on the way forward, including how to avoid some common pitfalls when starting the supply chain digitisation journey.

Lack of proper alignment between the digitisation initiative and corporate strategy is one such pitfall. Another pitfall is trying to digitise too much too quickly. That approach increases the risk of failure. Instead start with the areas that matter the most to your business and make the organisational changes necessary to fully capitalise on the new data and insights that emerge. Yet another pitfall is introducing unnecessary complexity by going overboard with “world class” technology purchases, rather than purchasing right-sized solutions that are fit for your unique purpose.

But Procurement can go further than facilitating digitisation of the supply chain. The whole way we interact with suppliers need to shift away from a transactional approach, towards developing value-creation systems. These systems are inherently more resilient because multiple stakeholders are collaborating to co-create value around a particular key offering. Procurement’s role is to build and manage these constellations of value, where the individual participants may simultaneously act as buyers, partners, sellers, producers, etc.

What about the people?

Those employees whose wellbeing has been compromised and who are finding it challenging to remain resilient – what can the Procurement profession do for them? Helping procure technology that ensures staff is effectively supported in their day-to-day work would be a good start. Accessibility is an important consideration when deciding what the “right” technology is. So, a cloud-based solution where data can be securely stored, shared and accessed from anywhere is key.

Remote workers also need solutions that support clear communication. This could be company wikis, instant messaging and chat apps. For staff involved in project work, an easy to use project management solution is important. Companies may also want to consider technologies that attempt to replicate the office “water cooler” effect. This could be company social media pages where employees can also share non-work-related stuff.

To feel supported, remote workers also need to receive the right amount of training to keep up with new job demands. So, the selected technology platform must be able to handle those continuous training requirements.

For those that need to be trained remotely on performing physical tasks, Procurement now has the option of sourcing Virtual Reality (VR) technology that’s pushing the boundaries of what’s possible. Traditionally the problem with teaching physical task sequences in a class room or two-dimensional virtual environment was that only 10% of the learning was retained. Contrast that with a retention rate of 80% when people are taught on-the-job.

With the latest VR technology, however, you can become fully proficient in performing a task that you have not actually performed yet in the real world. And the virtual world is now so “real” that you can actually feel virtual objects. That’s made possible thanks to a fully immersed body suit. When you wear it and try to touch a virtual object, electrical pulses allow you to feel it.

But training doesn’t just support the individual employees, it supports the entire company as it:

• reduces staff turnover and, therefore, recruitment costs;
• helps develop leadership talent;
• supports a culture of innovation; and
• maximises return on your technology investments.

Procurement can make a case for digitising the supply chain, building value-creation systems, building empowering remote working environments, including taking remote learning to a new level. However, the decision as to which direction the company takes ultimately lies in the C-suite. Will this pandemic be enough of a nudge for visions and strategies to change?

Armand Brevig is the Managing Director of Procurement Cube. Through our strategic-practical approach, we offer fresh perspectives on your procurement challenges and creative solutions that work. The Procurement Cube approach is direct and business focused.