The pandemic and following recession have taught businesses an important lesson: it is essential to plan for the unexpected and for the long term. While COVID-19 may prove to be a temporary situation, its impacts reach far and wide—and those changes are likely here to stay. The economy closing (and reopening) affected consumer demand and all aspects of the supply chain, particularly lead times and budgets. As a result, several procurement trends emerged that may test your business resilience—and subsequently help you build your adaptability.
With the threat of climate change looming over us, sustainability is a high priority for businesses and customers alike. When it comes to procurement and supply chain management, specialists will need to move away from simply ensuring that their vendors comply with eco-conscious practices. They will be expected to proactively collaborate with businesses on how to ensure sustainable practices at each step in the supply chain and lower carbon footprints.
2. Social Impacts
Businesses (and by extension, their procurement and supply chain partners) will need to ensure an ethical supply chain due to consumer demand. There is an increased social pressure for proof of local sourcing, fair employment practices free of exploitation, ethical business practices, and following sanctions. Organizations need to be prepared to adjust to these consumer demands in order to maintain their client base.
3. Market Volatility
As businesses and countries continue to reopen after the pandemic shocked our global economy, we will continue to deal with the extensive market volatility that emerged. While many businesses tend to focus on supplier consolidation, this technique leaves little room to adapt to changes like the pandemic. That means your business needs to find ways to track vendors, proactively anticipate problems, and handle sudden changes when they come. The ability to effectively manage risk will be even more necessary.
Many organizations had to cut back on resources during the pandemic. That meant letting staff members go and losing essential tools. Businesses had to get resourceful to find ways to work smarter with new budgets and the tools they already had. This creates the need to train existing staff members and leaders in areas of professional development such as time management for greater efficiency. Businesses will also need to find ways to automate their processes to save time and increase productivity.
Outsource Your Purchasing Process and Call Teknik Today
At Teknik, we are constantly innovating and finding new tools to simplify the purchasing process for our clients. With the number of changes in the procurement industry, we want to be sure your business can stay up to date and keep your clients happy. By taking over the procurement and sourcing process, we have consistently helped our clients simplify their work day, reduce their lead times, and boost their savings. As your procurement expert, we can help you acquire any product line you need, ensure order accuracy, and manage the delivery from origin to destination.
For stress-free procurement, talk to us today at +1(305) 592-1512.