Being Brave And Bold To Deliver The Change Required
Question: How can one build back better around a revitalised procurement experience?
This was discussed in a recent Keynote Panel under the moderation of Lucy Zhuang, Regional Procurement Head, Greater Asia, Intel. Lucy was joined by:
- Kai Ling Phui CPO DBS Bank
- Jane Marasigan Head of Strategic Sourcing AIA Philam Life
- Anu Srinivasan Head of Procurement Bupa
- Vijayanand Choudhury Global Head of Procurement Tata Technologies
- Indra Ariyanto Head of IT Strategic Sourcing Bank Mandiri
We penned down some of the thoughts and key takeaways of this discussion.
Challenges From The Front Line
As those responsible for maintaining supply routes and keeping organisations runnning, procurement leaders have been at the front line of dealing with the pandemic. There have been significant challenges to overcome.
Business continuity has been a major issue, particularly for service-based organisations that must rely in turn on external suppliers and service providers.
While many organisations may have had short-term Business Continuity Plans in place, few will have been prepared initially for a long-haul crisis like COVID-19. For longer term assurance of business continuity, procurement organisations must effectively collaborate with suppliers and end users, taking into account the needs and capabilities of all parties involved.
Organisations that rely on data sharing and online technology platforms must also contend with the issue of information security. This problem may be heightened by the increased exposure to attack provided by remote workers using potentially unsecured personal devices and collaboration tools. Some organisations have gone so far as to create information containment “bubbles” for key stakeholders, suppliers, and data repositories.
Organisations in the health care sector appreciate more than most the importance of protecting front line workers. This includes both sourcing and distributing Personal Protective Equipment (PPE), and the enabling technologies that permit these workers to effectively do their jobs.
Financial services providers must also look to the physical health and safety of their internal stakeholders, who are responsible for interacting with consumers and delivering these services. Provision of financial services also relies on the availability of essential commodities and technology. This can range from components like the digital chips on payment cards, to laptops and remote working software for employees.
For organisations across the board, cost management remains a pressing challenge. Supplier markets are shifting, with some vendors going out of business, and others becoming subject to mergers or acquisitions. Procurement leaders in all sectors must therefore continue to keep a close eye on the supplier ecosystem, and make informed decisions that enable them to extract maximum value, while keeping costs to a minimum.
Gearing Up For Future Success
Being brave and bold to nurture future success requires different approaches, for different industries. For some, it manifests as soft skills -- the ability to communicate well and collaborate with partners, or the power to negotiate effectively.
The pandemic has highlighted the importance of a resilient supply chain. To promote resilience, organisations must call upon the skills and resources of every relevant stakeholder in the supply ecosystem. Fostering collaboration, transparency, and trust are keys to this endeavour.
Procurement leaders also need to be in tune with the objectives and methods of the business at large. Procurement needs to speak the language of business, understand business metrics and KPIs, and apply its unique skill set to addressing business challenges. This may require procurement professionals to think more broadly, and laterally.
Procurement brings a unique viewpoint to the table: the ability to see an overview of prevailing markets and business conditions, relevant risks and opportunities, and a picture of what’s available and most appropriate to the needs of the organisation.
This vision also enables procurement to identify emerging practices and technologies that can contribute to organisational success. To this end, procurement must itself be willing to actively embrace these new technologies and techniques.
Procurement can also play a role in formulating strategy. These strategies may embrace operational efficiency, business continuity, supplier/stakeholder management, and innovation.
Technology has a role to play, as well. It’s no accident that many vendors are choosing to automate their operations. Automation can improve efficiency, reduce costs, and free up human talent to concentrate on businesscritical strategy and operations. For the post-pandemic era, procurement should also be looking to next generation technologies for automation and analytics.
Why Now Is The Time For Procurement To Shine
Pandemic response has expedited supply chain innovation. Organisations have realised that there’s a division -- Procurement -- which is uniquely skilled and positioned to manage supply in difficult times, and to pilot innovation.
Procurement has moved from a back end operation to become a critical front line process. Moreover, procurement now works as the centre of a hub that unites processes and departments of the organisation as a whole.
Closing off the discussion, which was streamed online to an audience of 300+ procurement professionals, the panelists also shared their thoughts to these questions from the floor:
- In Q1 2020, supply chain community was fearful of disruptions from China. Everyone is preaching China+1 strategy. However, the situation now looks like China supply chain is much more well-greased than the ROW. (rest of the world) What is your view of reshoring strategy?
- Would having a digitalized procurement system such as Procure to Pay or Source to Pay system help in the New Normal?
- The procurement community has to switch from competitive to collaborative mindset. How can we do this more effectively?
To find out the answers to these questions and more, download the full report ''Winning In The New Normal And Future Proofing Your Procurement Strategy'' here.