The 2008 financial crisis has triggered major changes in procurement operating models. Now, the COVID-19 pandemic is causing the next wave of change in procurement.
The current crisis has shown that traditional procurement models no longer work and are no longer feasible. It has created new procurement challenges. These include working with a remote workforce, working with service suppliers unable to work on-site, identifying service suppliers in unchartered categories and executing risk mitigation plans to minimize or prevent disruption. Thus, the priorities of procurement have shifted from sourcing and negotiating contracts to partnering with business leaders to ensure short- and long-term supply chain continuity.
Organizations are adapting to the new normal and their investments in improving sustainable capability provide several benefits. These include improvement in operational agility, streamlining of workflow execution, promoting collaboration across all business functions and building self-service processes.