Many would argue that COVID-19 has changed the way we work, especially in procurement. We have had to move in and out of our offices, conduct virtual  meetings, and use our great negotiation skills to get the best deals. Supply chains became more complex and having a single source has turned into a risk. 

Is there any aspect of procurement that has not been affected? Is there any aspect of procurement that could have been done differently, and maybe, better?

Without the need to have the team in one single office, teams today have enabled a distributed way of working, adjusting to different cultures and time zones of our partners and suppliers. A couple of years back I heard a story of a Canadian manufacturer. Their main suppliers were in Southeast Asia. Hence, the procurement manager was sitting in Australia with her team of 6 buyers, located in 6 different countries, taking care of quality control and ensuring that goods were delivered on time. They were constantly monitoring the local market for new potential vendors, which was quite a challenge from halfway around the world.  Today, this has become a norm. 

While I have seen the presentations of 3D virtual conference systems, I still believe that real meetings are not replaceable with technology. After all, we all know that the best deals are made over lunch, and not in the boardroom. However, technology has enabled us to connect faster and more often. Instead of meeting three times a year in person, now we can meet six times online and once in person, which you have to admit, helps build relationships and enable collaboration in the long term. 

Procurement needs to change – both internally and externally. More than ever, the teams must be flexible. We have to re-write our procedures and processes to adapt to the new realities around us and be ready to quickly give up our old habits. Finding the “sweet spot” between flexibility and control was always difficult. Now, with all factors constantly changing, we have to live with the fact that the change will never stop. 

I believe that 5-year contracts will not come back for a long period. We have to learn who is critical in the process and could lead our operation to a halt. You must learn and adapt that your entire 5000 person factory depends on a small factory in the middle of another country, producing a small, yet crucial product. If they stop, your Tier-1 single source also stops. To eliminate supply chain risks, we must reach out to Tier-2 vendors and monitor their operations.

When it comes to vendors, the job of procurement is, now more than ever, to think globally. COVID-19 is a scary reminder of how critical running of our supply chains is and how we must remain connected no matter where we are.