Join our latest panel discussion on “Procurement Challenges During COVID-19” on August 18th at 2 PM EST.
Click on the link to register: https://zoom.us/webinar/register/WN_7tbPfaKyQm20QwBOdTtVQw
As the COVID-19 Pandemic brought the economies of the world to a screeching halt, world is now preparing for its fallout. We are embracing a new dawn of business realities; every organization is adapting to survive.
World economy is restarting, organizations have yet again opened doors, we are embracing the ‘new normal’ and the challenges is bringing with it, a simple definition of economy states “Economy is a system of Buying, Selling and consumption of goods and services being produced.”, ‘Buying’ being a quintessential part of the same. Procurement specialists are working continuously with the government and corporate sectors to cope up with challenges such as market availability, border restrictions, broken supply-chains, etc.
The government agencies’ readiness to deal with the heightened attention on procurement processes, and to find the solutions in the unprecedented times, when home-based work is a prerequisite should be considered.
At the same time, maintaining transparency in costs across categories, suppliers and facilities are vital to avoid unnecessary spends during the outbreak. Here, procurement leaders need to keep a tab on savings, and they can achieve it with the adoption of digital technologies.
At vTech Solution, Inc., you’ll experience highly scalable IT solutions that will enable you to take care of your procurement requirements while you focus on making purchases and track progresses.
So, what procurement challenges are we facing in the ‘new normal’?
1. Supply chain
Companies may continue to face supply chain challenges for a prolonged period. It is an ordeal for managers and procurement specialists for coming up with emergency plans for upcoming delays and manage risks.
2. Conflict of preference
Accenture stated, 94% of Fortune 1,000 companies suffered supply chain disruptions due to the pandemic.
Some projects might not be in priority. Here, procurement managers need to make the organization understand why their projects need to be in high priority.
3. Quality issues
Even if the procurement specialists manage to get the products, their quality might not be as expected. This might need amendments in the project deadlines or clarification to the clients regarding the quality of your deliverable.
4. Price fluctuation
COVID-19 has left the market extremely volatile. Imagine that the procurement manager has secured the products, there are chances that the prices may have increased or decreased, leading to recalculate your project budget. Since there are global supply shortages, some companies might afford to pay the increased costs, while some may turn down the projects altogether.
5. Maintenance and Support Issues
Customer support and maintenance is facing the wrath of COVID-19. It would be agonizing for government agencies as well as corporates and their customers. Here, transparent communication is the key to calm down clients and customers. Though solving each customer query through phone or chat might become tedious, one can also take resort to social media platforms in order to broadcast an information or answers to general queries. This will help to retain customers.
How vTech Solution, Inc. can help solve Procurement Challenges during COVID-19 pandemic?
A 2019 CPO survey by the University of Mannheim, 83.9% of Chief Procurement Officers (CPOs) consider the adoption of digital technologies as important to improve procurement performance.
Only 65% of respondents are utilizing cloud solutions, and only 15% are using emerging technologies like Machine Learning (ML), blockchain, predictive analytics, etc.
a. Automating operations through IT – Move your sourcing workflows on cloud and reduce your cycle times and operating costs.
b. Using intelligent technologies – To achieve the expected level of the business outcome when other businesses are struggling for survival, using analytics and machine learning to get a uniform view of expenses across organizations is the right move.
c. Excellent customer experience – Through collaborative tools like cloud and Microsoft applications, lakhs of invoices are handled with a few clicks, making the procurement process easy and cost-effective.
Role of IT in the procurement process –
In the future, the procurement process will evolve as an autonomous entity with the help of advanced technologies. Whichever way an organization chooses, understanding key business challenges, tapping opportunities for technological innovation, and standardizing a vision is inevitable.