Procurement and supply chain software and services provider GEP surveyed their clients that are negatively affected by the COVID-19 pandemic. They found that despite efforts to maintain normalcy, most of their clients fail to improve efficiencies and reduce costs. Some of them even reported incurring higher costs just to maintain supply.
GEP offers suggestions on what supply chain and procurement leaders should do to prepare for an impending recession.
Procurement leaders should ensure supply continuity by creating scenario plans and multiple redundancies or keep excess capacity to maintain operations in case of disruptions. They should also improve future cash flow through supply chain cost reduction and ensure long-term supply chain agility through geographical diversification of their suppliers.