The spread of Covid-19 has brought about a great deal of uncertainty for many businesses and companies. Their operations have been affected by the pandemic in one way or the other. Companies are having to battle with labour shortages, production delays, disrupted supply chains, and more. The economic impacts of the pandemic are certainly going to be huge, and if not handled appropriately, they can easily cause the downfall of a business. That is why business owners are advised to put in place contingency plans that ensure the continuity of their business operations amid the pandemic.
The procurement field is among the most affected especially with movement cessations. Here are five strategies that companies can implement now to lower risks and increase revenue.
1. Digitize and Automate Processes
Business process automation and digitization are critical for any business setup. It has especially proven beneficial amid the current coronavirus outbreak.
Digitization can enable you to track your supply and demand chain in real-time, allowing you to identify potential risks and mitigate them before they have a detrimental impact on your business.
Data science and analytics are also used to model scenarios that help to identify your customers’ behavioral patterns and predict their future trends. This way, you can identify the market forces before making any procurement decisions.
Need inspiration? Find out how Altera Infrastructure (formerly Teekay Offshore) moved from emails to a secure, efficient and auditable data exchange platform in just 2 weeks.
2. Encourage Transparency in your Network
If your current networks and suppliers have been affected by Covid-19, the only way to ensure continuity for your business is by finding alternatives that can serve you efficiently. You should reduce your reliance on markets that are struggling amid the crisis and diversify to countries that are less affected by the coronavirus outbreak.
This is easier to manage if you have great visibility on your supply chain, both with your existing business relationships and future ones. At DeepStream, we make complex procurement easy with a flexible and personalized workflow. There’s one source of truth and an audit trail downloadable at a click of a button, making it easier than ever to have full visibility over your network.
Need inspiration? Discover how visibility is crucial to achieving a green supply chain here.
3. Hire a Risk Management Specialist
If you have a risk management strategy for your business, the time to implement it is now. If you don’t already have one in place, you can set one up by finding a specialist skilled in assessing and understanding the risks that you are likely to face and finding ways to mitigate them.
The risk management consultant should set clearly defined goals to ensure the company’s continuity, even in these uncertain times. His primary responsibilities should be to ensure supply chain continuity, protect the employees, set up accurate demand plans, produce contingency and financial impact plans, provide vendor risk management, and optimize sales and marketing strategies.
Need inspiration? Download our free whitepaper Reducing Compliance Risk in Manual Tendering now.
4. Team Up With a Broker
A broker or procurement service provider can help your employees to carry out a variety of tasks, including; benchmarking, procurement transformation, vendor risk management, strategic sourcing, and supplier identification.
As procurement manager, you need to ensure that you maintain internal procurement expertise across all areas of your direct and indirect transactions. However, this may be expensive, especially if you are hiring an internal team for your organization.
Using external services eliminates the need to establish and maintain procurement infrastructure for transaction categories that aren’t core to the business. They supplement the existing procurement department by providing support for specific categories.
Need inspiration? In this article, we show you why brokers are important to us and how you can easily add a collaborator to an RFQ while you maintain full control and visibility over the entire tendering process.
5. Pivot When Needed
It is safe to say the market conditions are likely to experience dramatic changes in the months and years to come. You need to embrace this change and consider all the factors and variables that could affect their business. You also need to embrace technology so that they can access timely and accurate insights on the market forces and act on them.
Need inspiration? Discover the seven steps to digital transformation here.
This is not the time for your business to stand still! Act now and make the most of the opportunities that come from teaming up with lean and agile technologies, and your business will come out stronger out of this crisis.
Find out more about how DeepStream can transform your business by booking a demo now.