The COVID-19 pandemic posed significant challenges for supply chains globally forcing business leaders to quickly shift from a posture of growth to survival. As a result of the disruption, cost management and supply continuity were suddenly top of the agenda and all eyes turned to the procurement function to help companies reach their goals.
According to Gartner, “Procurement’s influence naturally increases during a recession. For example, immediately following the Great Recession in 2009, 85% of procurement leaders reported having significantly more influence over business decisions than prior to the crisis”. However, outside of these major economic events, procurement is not being taken seriously and kept in the dark on critical business decisions.
Gartner finds that “less than one-third of procurement organizations maintain intelligence about business partners’ priorities and when or how they change, limiting procurement’s ability to remain aligned with business priorities as economic conditions fluctuate”. There is a perception among business leaders that procurement is only required when exclusively aligned with cost management and supply continuity. Procurement leaders need to capitalize on today’s moment and sustain influence coming out of the recession.
Regardless of economic conditions, to ensure they have a seat at the table in discussions that impact the business, procurement need to map the value of procurement projects to business priorities. Procurement leaders must challenge the misconceptions of procurement’s value and demonstrate its ability to keep supporting business priorities, given that they have the right tools and support.
Source: Gartner, 4 Tactics Procurement Can Use to Sustain Influence as Economic Conditions Improve, Ryan Polk, 5 August 2020
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