In the early months of 2020, procurement organizations were busy focusing on reducing costs by 3 to 5 percent annually, driving self-service through catalogs, and placing more spend under management. In the middle of COVID-19 and its economic disruptions, these goals still hold, but now there are new challenges. Today, procurement is also being asked to:
- Assess contractual liabilities, such as minimum order quantities, to address fluctuating demand
- Ensure resource continuity and reduce supply risk
- Address the challenges of working remotely—and supporting a remote workforce
- Obtain scarce resources to support the business due to increased market demand
These challenges place your procurement organization in the spotlight, involving it in the most strategic areas of the business. As a procurement leader, you have deep knowledge about spend, contracts, payment terms, IP rights, and risk throughout the supply chain—all critical areas for ensuring business continuity.
Now, forward-looking procurement leaders are examining the operating model, the skill sets, and the technology platforms they need to stay strategic. Because the procurement function is so critical to business continuity, the time is now to implement modern, agile solutions. By transforming, you will be better able to extract knowledge out of data—improving how you manage contracts, supplier risk, and collaboration.