by Lourdes Coss, MPA, CPPO
Happy Procurement Month! During the month of March, procurement professionals celebrate each other and the procurement profession. This year, we celebrate the leadership and ingenuity of many procurement professionals. Procurement has been at the forefront of the pandemic, and its value became more apparent to those who considered procurement a back-office function.
“Money is of no value; it cannot spend itself. All depends on the skill of the spender.” — Ralph Waldo Emerson
After a year of Zoom calls, pivots, and remote work, not yet over, we reflect on many procurement professionals’ actions, leadership, and resilience. Many quickly adapted to new circumstances and fulfilled their mission in their respective organizations. While the experience may have brought a higher level of stress and uncertainty, it also presented opportunities to add value and provide solutions to those on the frontlines.
In some organizations, procurement suddenly emerged from the “back office” to do what it does best, provide solutions that enable the organization to deliver the necessary services to the community. Many of those that stepped up to the occasion will see the reward through a more active role in their organization.
Procurement professionals should seize the opportunity to step forward and be part of the solution. Those that see the opportunity are probably working on strategies to minimize the effect of a future crisis in the organizations that they serve. Some procurement professionals are already collaborating to establish contracts that can help reduce the impact of an emergency or unexpected condition. One such group is the Continuity of Supply Initiative (CoSi). CoSi is a collaborative effort seeking to encourage the implementation of resilient contracts for the benefit of government organizations.
As many ponder how to build resiliency in the process and the supply chain, procurement professionals are called to take action. There isn’t a single solution. The answer is going to take the collaborative effort of all parties involved. This task is not one that procurement professionals can solve alone. The collaboration of technical experts, finance, legal, and suppliers will be necessary to implement feasible, transparent strategies and provide a competitive environment.
“In today’s era of volatility, there is no other way but to re-invent. The only sustainable advantage you can have over others is agility; that’s it. Because nothing else is sustainable, everything else you create, somebody else will replicate it.” – Jeff Bezos, CEO, and president of Amazon
I see this as an opportunity to re-think the way we have done things. Yes, it may be time to re-invent the wheel! It is a matter of staying agile to respond to the ever-changing environment while fulfilling procurement’s core objective. The mission has not changed, in my opinion. How the services are delivered may be different. How can procurement perform under other circumstances? Many procurement professionals demonstrated their ability to adapt to the conditions, particularly those equipped with the tools to do so. Those organizations that did not offer procurement the tools to quickly pivot to a remote environment undoubtedly learn the lesson. I’d like to think that we are leaving this pandemic behind us, but we should not forget that this is not the last crisis. Mother nature has a way of reminding us that from time to time.
“You will not find difficult to prove that battles, campaigns, and even wars have been won or lost primarily because of logistics.” – Dwight D. Eisenhower
I believe that it will take a holistic approach to achieve the resiliency to which many in the field are referring. Public and private sectors felt the impact of the supply chain disruption. A challenge that procurement has been dealing with is the absence of adequate technical specifications or explicit scopes to procure the goods or services more effectively. Some procurement professionals’ challenges include inefficient processes, lack of sufficient data, decentralized procurement efforts, maverick spend, and minimal market research and analysis. Besides, some organizations cannot attract the right talent or develop the talent they already have. Combining all of these old problems makes it even more challenging to take on the task of creating a more resilient supply chain and procurement process that can withstand the type of crisis that we have been experiencing since last year.
Some organizations take an ad hoc approach to improvements. This strategy is rarely successful due to other unresolved problems. It is better than doing nothing, but it doesn’t guard the process against the vulnerability seen very early in the pandemic. The procurement issues will not be resolved at once but considered in any initiative undertaken to prevent more surprises in the next crisis.
“Put a good person in a bad system, and the bad system wins, no contest.” ~ W. Edwards Deming
Several experts and procurement associations advise on the adoption of best practices like (1) centralizing the procurement function to more effectively leverage effort and resources; (2) establishing a center for excellence where intelligence gathered through market research, spend analysis, and historical information maintained systematically;(3) implement category management to develop expertise within the procurement group; and, (4) developing the procurement team by equipping them with the tools necessary to offer solutions. Procurement professionals are much more than gatekeepers. They can be the resident procurement consultant that help deliver results to the organization.
In summary, the pandemic highlighted the relevance of the procurement function. It is an opportunity to become the organization’s strategic partner and be well-positioned in the organization with a seat at the table. It is up to each procurement executive to take advantage of the opportunity.
About the Author: Lourdes Coss is a former Chief Procurement Officer living her purpose. She’s the author of “Procurement Methods: Effective Techniques” and uses the lessons of her 27 years career in government procurement and transformation to coach, train, and provide consulting to leaders and aspiring leaders in the profession. Post-Pandemic, you may find her in a café writing her next book.