The combined effects of the global epidemic and the world shakeout have had a huge impact on all sectors. Different attitudes will produce very different self-help results. After the epidemic is over, those companies that are well-prepared and do not complain will be able to quickly return to normal operations and even obtain development results beyond those before the epidemic, while those companies that fall into panic and just complain and wait passively will probably be devastated by the epidemic.
With the double whammy of the epidemic and the economy, how do procurement professionals gain a foothold and grow against the odds?
Keep a Normal Mind
It is important to keep a normal mind, reflect on the value of work to “be a work ace” and then “have a place” insourcing.
In the face of a severe situation, procurement staff should, first of all, put their minds at ease and not panic; secondly, they should practice their internal skills and let themselves grow up quickly; thirdly, they should work in a problem-oriented and result-oriented manner to highlight the value of their work, and only when they are able to do so can they have a place.
In the workplace, strength and value are always one’s greatest strengths. With the development of the market process, more and more companies and individuals agree that procurement is a very skillful job. It is said that there are specialties in the field, how can procurement improve their own abilities?
To be a connoisseur who knows the business
To learn and familiar with the procurement chain, supply chain and other knowledge, supplier development, management and maintenance of knowledge; materials market industry, the current state of competition, logistics, and other knowledge to understand and master. To sum up, we should strive to learn and master the 4 core competencies of supplier management, cost analysis, contract management, and negotiation skills.
To be a steward to care about departments
We must take the initiative, give full play to our subjective initiative, and link up the work of upstream and downstream departments, all relevant personnel, and related matters, as long as we can quickly and efficiently promote the procurement chain, the supply chain to run things actively to do, do not be afraid of trouble. Ask more questions, think more, and do more, and you will naturally grow faster.
To be a keen scout of the market
Collect market frontier information, actively develop suppliers and expand procurement resources; use supplier contacts to obtain business information for the company, to strengthen and extend the value chain of your work.
Strategies for Procurement in the Context of the Epidemic
The epidemic brought a severe test to the procurement work. Logistics time is prolonged and stalled; suppliers stop production and work, causing the delivery of raw materials and materials to be unpredictable; or the cost of raw materials rises, and suppliers demand price increases, and sometimes there are even prices without market. For procurement, how to do a good job in the epidemic environment? What targeted procurement strategies are needed?
Develop multi-regional suppliers, put eggs in different baskets
Suppliers are an important external resource for the survival and development of enterprises. Under the severe test of the epidemic, whether suppliers can still produce and deliver normally is a key consideration for procurement.
It is important to learn to prepare backup suppliers so that even in the case of epidemic control in different regions, we still have a chance to be able to achieve normal production and on-time delivery.
If we start looking for suppliers again after the fact, it not only increases the time cost but also wastes time and makes production more stressful.
Increase the maintenance of strategic suppliers
For purchasers, establishing an excellent long-term relationship with suppliers can lead to stable and competitive prices, especially in times of epidemics.
Establishing and maintaining a good relationship between purchasing and suppliers is the first priority of supplier management, and can bring many direct potential benefits to the purchasing company as well as avoid any potential problems. For example, the purchaser may suddenly ask the supplier to increase the supply quantity or shorten the delivery cycle, and these problems can be easily solved if the purchasing enterprise and the supplier have a good cooperative relationship. With a good purchasing and supply relationship, the negotiation time between the two parties will become shorter, problems will be simpler, and disputes between the two will be easily resolved or even absent.
Develop contingency plans for procurement in times of epidemics
Appropriately lengthen the material procurement cycle to cope with unexpected situations such as supplier shutdowns and poor logistics channels due to the epidemic. Through digital procurement and online logistics tracking, both procurement departments and demand users can track the shipment, logistics, and arrival of goods online. Through online monitoring, users can clearly understand the logistics status during the epidemic, and even though it cannot help shorten the logistics time, it can identify problems and assist in solving them in a timely manner. It can also be open and transparent internally, which can effectively reduce frequent telephone chasing and face-to-face contact.
Online and digital procurement means that online research, business communication, business negotiation, and problem communication with suppliers can be conducted, which can effectively reduce or even avoid face-to-face contact between procurement practitioners and suppliers during an epidemic. Procurement should master and make full use of the online office system, and work from home to ensure that procurement is not interrupted if you are unable to work normally due to the epidemic.
Procurement is a tough, high-pressure job, and the various adverse effects of the epidemic have made it even more difficult for procurement staff to climb up and over the hills.
We need to accept the impact of the epidemic psychologically, strengthen our core skills, make ourselves irreplaceable, and think more about procurement in the context of the epidemic, we will definitely overcome the winter of the epidemic and usher in a bright spring.