Tag Archives: covid-19

Do You Agree? 4 Supply Chain Influencers On What’s Changed Since COVID-19

In supply chain and procurement, what has changed since COVID-19? Find out what 4 influencers think here.


In every industry, there’s a few powerful individuals who drive the conversation. These fortunate few are the ones that propel industries forward; they are the ones who decide what’s trending, what’s next and what our future might look like. They’re influencers, and within the procurement professional, we’re blessed with many whom we all aspire to. 

And this year, with COVID ravaging our supply chains (and not to mention lives) as we know them, we’ve needed industry leaders and influencers more than ever to help guide us through and tell us what’s next. So that’s why, recently, we sought out the opinions of 30 of procurement’s top influencers. They shared some of their most profound and intriguing insights into what the COVID experience has been like for them, what they’ve learnt and what they expect to see in the future. 

Here’s what they told us: 

Inspiring supply chain stories 

There’s no doubt that the past few months have been challenging for procurement professionals worldwide, with many stories of interrupted supply chains, logistics issues and much more. Yet in among the mayhem has been some truly inspiring stories. Here at Procurious, almost daily, we heard of businesses, teams and people that were going above and beyond to help. 

This was something that our influencers noticed, too. One thing that caught the attention of Supply Chain Queen Sheri R. Hinish is the incredible generosity of suppliers. She explains: 

‘I was particularly impressed by Under Armour’s (clothing brand) sister company, Sagamore Spirits. They provided thousands of units of hand sanitizer for local businesses, communities, and residents.’ 

Indeed, there were hundreds of suppliers who, seemingly overnight, transformed their production from items such as high fashion to scrubs. But for Kelly Barner, Managing Director of Buyer’s Meeting Point, the inspiration came not from suppliers, but from the extraordinary efforts of procurement professionals who previously may not have been noticed: 

‘Businesses everywhere are sorting out tough problems. But behind those problems are armies of unlikely characters self-organising to make things happen.’ 

‘Business leaders should pay attention and notice who runs toward the fire. It might not be who they expected.’ 

Learning from COVID-19 

One quick Google search will reveal hundreds, if not thousands, of articles dedicated to what the supply chain profession should learn from the coronavirus pandemic. There’s been discussions of everything from the need to move manufacturing from China to Mexico, to better managing cash, dialling down just-in-time operations and everything in between. 

Dr. Marcell Vollmer, Chief Innovation Officer at Celonis, a process mining software company, believes that the pandemic has been a reminder of what we all already knew, but may yet to have embraced: 

‘The number one lesson I think we all need to learn from COVID is to prepare and leverage technology to get full transparency and control over your end to end processes.’ 

‘We all need to be using technology to prepare ourselves for unforeseeable events as much as possible.’ 

Marcell’s learning here is sound – for years, we’ve all known that Industry 4.0 is coming, yet COVID may have accelerated its onset. 

For another influencer, Diego De la Garza, Senior Director of Global Services at Corcentric, the COVID learnings were about the way we worked. Specifically, Diego thinks that the pandemic has made us more productive: 

‘Working from home, it has impacted productivity, for the better. My team has been able to dedicate more time to critical tasks, while at the same time balancing work with family.’ 

‘Still, it’s remained ultimately very possible for everyone to collaborate and perform efficiently.’ 

Aspirations for procurement post-COVID 

For seemingly as long as the procurement profession has existed, many of us have wanted more and better. We’ve wanted to be strategic, to have a voice and influence, and to finally add the value we know we’re capable of delivering. 

Will the pandemic represent the ultimate opportunity for us to do so? 

Sheri R. Hinish, Supply Chain Queen, thinks the answer is a big, fat resounding yes: 

‘Supply chain has never had as big a seat as the table as they do right now.’ 

‘My hope is that we embrace a paradigm shift from “lowest price” to shared value and responsibility. Everyone now sees that supply chains are the conduit that power the world.’ 

The performance of procurement throughout the crisis 

It may be true that we’ve never had as big a seat at the table as we do now. But how have we actually been using that seat. Kelly Barner, Managing Director of Buyer’s Meeting Point and one of the world’s most influential supply chain professionals, believes that procurement has done a great job: 

‘Procurement professionals have done an exceptional job of keeping the lights on, despite periods of great uncertainty and concern.’ 

‘Whether we were locating replacement suppliers with little to no notice, or identifying new suppliers so our operation could switch from clothing to PPE, we have been getting the job done.’ 

Do you think procurement has done a great job throughout the pandemic? Do you think a lot will change after the pandemic is over? Let us know in the comments below.

For more game-changing insights and inspiring stories from key players themselves, check out our COVID-19 Gamechangers whitepaper.

Supply Chain Globalisation: Is this Seismic Strategy Shift Possible?

59% of procurement and supply chain professionals say the Fortune 500 should reduce globalisation by bringing manufacturing back home. But is it practical?


The best way to describe the supply chain disruptions caused by COVID-19: pervasive and severe.

Our research found that 97% of the organisations experienced a supply chain disruption. Let that sink in for a second. We knew the supply chain impact of COVID-19 was extensive. This finding takes it up another level – indicating the disruption was near ubiquitous.

So what’s next? The majority of procurement and supply chain professionals (73%) are planning seismic strategy shifts post-pandemic – and rightfully so. Changes under consideration include expanding supply bases, adjusting inventory strategies, increasing financing for key suppliers and localising supply chains. The latter is the most ambitious, and will be the hardest.

Obstacles to Bringing Manufacturing Back Home

The idea of reducing globalisation in response to COVID-19 is both popular and logical.  Nearly 60% of those surveyed believe the Fortune 500 should reduce globalisation by localising supply chains and bringing manufacturing back home.

But as every industry veteran knows, doing so is easier said than done. Modern supply networks and production strategies were built to be global. Reversing this will require fundamental strategy, technology and financial changes.

Consider the core drivers of supply chain globalisation. First and foremost: it’s about costs. The never-ending race to the bottom has made low-cost country sourcing the norm for procurement. At the same time, products – especially smart technologies – are getting more innovative, complex, personalised and sophisticated by the day. This forces manufacturers to outsource critical components to other manufacturers, who outsource to sub-suppliers, and so-on. The sheer expertise and technical capabilities needed to produce smart and connected products (consumer electronics, cars, healthcare equipment, etc.) goes well beyond what one manufacturer could reasonably provide on their own.

As Harvard Business School professor Willy Shih puts it: “A consequence of these complex interdependencies is a deep tiering of supply chains, with manufacturers dependent on their first-tier suppliers, which, in turn, are dependent on a second tier, which are themselves dependent on a third tier, and so on. Visibility into third, fourth, and more distant tiers is challenging, making wholesale replacement of anyone in the chain, let alone the entire chain, extremely difficult.”

In other words: reversing decades’ worth of low-country sourcing strategies, supplier specialization and network expansion will be complex, time-consuming and costly.

While organisations will take the necessary time to evaluate the brand, supply chain and product ramifications of such a change, the national implications are more urgent. Nations across the world – including Australia, the UK and the U.S. – are making big investments to bring manufacturing, especially for critical healthcare supplies, back home. This problem erupted early in the COVID cycle due to global shortages of masks and ventilators, and has become more pronounced as countries prepare to develop vaccines, once approved.

The issue: According to the Financial Times, World Bank data shows “manufacturing’s share of the economy in the US, UK and Australia has shrunk to its lowest level in more than 30 years to 11 percent, 9 percent and 6 percent respectively.” In a time of crisis, where life-saving equipment is needed as soon as possible, the delays creating by strained, outsourced supply chains are highly limiting, to say the least.

What’s Next for Procurement and Supply Chain Leaders?

The pandemic was a wakeup call. But what happens next remains uncertain. Will enterprises invest to reconstruct supply chains, or decide to make more targeted strategy and resource tweaks? Will they see this pandemic as a black swan event or a fundamental course-changer? Only time will tell.

We want to hear what you’re planning. Share your thoughts below.

For more insight, download the How, Now: Supply Chain Confidence Index today.

Out Of Africa – Procurement News

On the cusp of a groundbreaking Procurement event, in the wake of catastrophic pre-COVID events, and despite grim economic outlooks and stifled Supply Chains, Africa is proving itself to be an innovative, resilient force in World Procurement


It’s an exciting time for Procurement in Africa! Two leading influencers in the African Supply Chain and Procurement profession have created AFRICA SUPPLY CHAIN IN ACTION: the largest ever online learning, knowledge sharing and networking event for the profession focusing on Africa. SAPICS, The Professional Body for Supply Chain Management, has joined forces with Smart Procurement, Africa’s leading supply chain and procurement information service, to present this ground-breaking event on August 19 and 20 2020.

More than 1000 delegates are expected to attend: a significant proportion will no doubt be the thousands of Africa-based Procurious members! Join SAPICS and Smart Procurement along with Procurious’ greatest minds and register here.

AFRICA SUPPLY CHAIN IN ACTION will help African Supply Chain professionals position themselves and their businesses to adapt and thrive, now and beyond COVID-19. Their exciting packed programme will examine what Africa has learned from the COVID-19 pandemic and how individuals and organisations must work together to change the dialogue, strategies, and operating models in response to the new tomorrow.

This happens just as Africa is currently pioneering very positive developments in Procurement Technology. Africa’s pains during the COVID-19 pandemic have been well-documented: the lockdown of key countries’ exports, closure of borders and factories, and poor healthcare facilities. However, despite the doom and gloom, there is a general level of optimism and enthusiasm for innovation by people across the continent. Entrepreneurs in Nigeria, South Africa and East African countries are developing digital applications to solve our 2020 supply chain problems. 

While fruit, vegetable, meat and seafood exports into Europe have taken a temporary hit, agritech solutions, such as remote sensing of crops and data- mining and analysis using e-platforms, are successfully being adopted by commercial farmers as part of their digital future. Nigeria is leading the way in applying technology to improving regional logistics: the transportation start-up Kobo360 is now in most countries in West Africa.  Kenya and Uganda lead the way in affordable mobile services to support small business. The South African government is using WhatsApp to run an interactive chatbot which answers all types of queries about COVID-19, including business-related issues.   

While Africa as a whole has recorded relatively few deaths from the disease, the numbers are rising and African countries are struggling to contain the spread. McKinsey has proposed different scenarios for Africa’s economic growth in the wake of the pandemic, the most likely being an annual growth rate as low as -3.9 per cent. This is based on the most realistic scenario: a lack of containment both globally and in Africa. The health of Africa’s Supply Chain and economy rests significantly on whether or not the spread of COVID-19 can be contained so trade can resume.

Africa’s trade with China

China’s exports to Africa over the last two decades have remained steady with South Africa, Nigeria and Egypt its three largest trading partners. Africa’s exports to China have been increasing, but are heavily dependent on commodity prices; the main products exported are raw materials including copper, iron ore and oil coming from Angola, South Africa and the Republic of Congo. While the data is not 100% reliable due to China’s reporting process, it is accurate enough for us to see the trend before this current crisis.

Figure 1


Foreign direct investment and agricultural investment in Africa by China has also been increasing over the same period but the trend was already slowing before the current crisis. There are still some high-value engineering and construction projects happening, especially in North and East Africa.

That was then …. this is now

Most of Africa is closed for business right now. Seaports are mostly closed, air cargo and other transport routes are limited and business lockdowns are in effect, halting exports. In China, Mass production shutdowns and supply chain disruptions due to the current crisis are causing problems. For example, 85% of South Africa’s mobile phone imports are from China, their largest import category by value. Not only does this impact the end consumer, it also affects the wider telecommunications industry and many service sectors.

The Chinese economy is not likely to bounce back from this pandemic as quickly as in previous similar episodes (Bird flu 1997, SARS 2002-2003, Swine flu 2009). Despite this, China will probably continue to be one of Africa’s biggest trading partners after the worst of this crisis has passed.  

Africa’s global trade  

Global law firm Baker Mackenzie notes that “over three-quarters of African exports to the rest of the world are heavily focused on natural resources and any reduction in demand impacts the economies of most of the continent”.  They identified such countries as the DRC, Zambia, Nigeria and Ghana as being significantly exposed to risk in terms of industrial commodity exports, such as oil, iron ore and copper.  They expect that once COVID-19 is brought under control it could lead to an increase in the demand for raw materials from Africa, especially from China.

 Figure 2 – Africa’s commodity exports to the world

 

Source:  Chatham House 2020


Africa’s Exports to Europe

Africa’s exports to the European Union stood at around US$133 billion in 2016. Most African countries have duty-free access to the EU market.  Raw materials normally account for 49% of the value of Africa’s exports to Europe. It is expected that this will return to near normal when mining activities resume at full capacity.  It is not that clear whether manufactured goods such as textiles and machinery will get back to current levels of 35% of exports. Food products and beverages make up the other 16%. 

In sub-Saharan Africa, South Africa is the strongest and the most engaged when it comes to trade with the EU, supplying fuels and precious metals and other mining products, as well as machinery and transport equipment. The main destinations are Germany, Netherlands, Italy and the UK.  West Africa is also a leading exporter to Europe.  Animal products, vegetables, tobacco, and textiles are mainly imported from Benin, Senegal, Ghana and Guinea. Other countries, like Niger and Sierra Leone export commodities such as diamonds, uranium, and precious metals primarily to France, Italy, and the Netherlands.

What is next for Africa?

Normal business operations, as we know them, will be irrevocably changed as a result of this current pandemic. Many companies were not prepared for the level of disruption this unforeseen crisis would bring. We may not ever return to “normal” practices or to the marketplace as it was. What is clear is that companies that gave scant regard to managing their supply chain risks have received a wake-up call!  Companies are advised to consider a range of different possible scenarios and develop plans to deal with each eventuality.

How did your Procurement Team handle the crisis so far? 

As activities start to normalise, we need to reflect on how well we have been able to navigate the previous 3–6 months. A study of the success, or otherwise, of procurement events will highlight areas of improvement. 

  • How well did we execute emergency sourcing events?
  • Did we make the best use of our available technologies?
  • Did we act at the right time and in the right way with our suppliers? 
  • How could we have managed our sourcing processes better?

AFRICA SUPPLY CHAIN IN ACTION aims to answer all of these, 19-20 August 2020. Read up on the latest Procurement news and game-changing ideas on Procurious before registering here.

The path forward for Africa will no doubt be challenging, but it’s up to us to pave it – and together, we can.


Here Are 5 Of The Most Life-Changing Career Tips Of 2020

2020 has been a year like no other. Which of course means we need an update in our go-to career tips…


Unfortunately, careers often look better with hindsight. If only I hadn’t taken that role, we often think, or perhaps, I could be better off if only I’d learnt to better negotiate my salary. 

Fortunately for you though, those types of concerns or regrets might not be something you have to worry about after you read this article. We all need some good news right now, so to bring you five of the most life-changing career tips of 2020, we chatted to one of the most-experienced supply chains recruiters in the world, Tim Moore. As the President and Owner of Tim Moore and Associates, has single-handedly placed thousands of high-ranking supply chain executives into roles all over North America for the best part of almost three decades. 

He sat down with us to share ‘something money simply can’t buy’- hindsight. 

Tip 1: Stand out – you may soon have some competition

When it comes to global supply chains, it’s fair to say that the coronavirus pandemic has changed absolutely everything. From food to medical supplies, the crisis has caused all of us to consider just about every element of what we do, from how we manage suppliers to what technology we use and why. 

It has also brought significant awareness to the importance of a resilient, secure and reliable supply chain. This, in turn, says Tim Moore, has led to an increased interest in completing your supply chain qualifications: 

‘Thanks to COVID-19 and the awareness of Supply Chains there will be a long overdue “spike” in the number of new students enrolling in supply chain courses.’ 

‘Fortunately, I think there are now many degree programs ready to cater to this boom and help rectify today’s shortages of supply chain talent.’ 

Is an increased interest in a supply chain as a career going to pose a threat to today’s seasoned supply chain professionals? Not really, says Tim, but if you are at a more junior level, standing out when applying for jobs will become more important than ever. 

Fortunately though, more qualified junior talent in supply chain will be of great support to teams this year who have a lot to grapple with throughout the pandemic and beyond. 

Tip 2: Your profession has skyrocketed in importance and awareness – make the most of it  

Prior to writing this, we Googled whether there was such a thing as the ‘Year of the Supply Chain’ (sort of like the Chinese Zodiac “Years Of”). Sadly, there wasn’t. 

But if there was, undoubtedly it would be 2020. 

At no time in history has supply chain management been as crucial and all-defining as it has been this year. Suddenly, procurement and supply chain has gone from an overlooked ‘function’ to the crucial heart of the organisation. If ever you wanted to be strategic, get noticed and truly ‘take a seat at the executive table,’ now is the time to do so, says Tim.  But you have to be strategic and proactive.

He truly believes that this year will be career-defining for many supply chain professionals who step up and take the initiative: 

‘There has never been a time since the second world war, when the supply chain profession, and the techniques they bring, have been so important and visible to the senior executive within the firms that employ them.’ 

‘Every supply professional has learned lessons about the vulnerability of their particular supply chain(s) – and should be proactive taking steps to reduce the risk of disruption in the future.’ 

‘You can’t afford to wait and gamble that it won’t happen again…it will.’

Tip 3: Salary surveys may give good insights – but be careful how you use them

With the supply chain profession being elevated in importance, and businesses (hopefully) edging towards recovery as the year continues, opportunities may increase for people in the hunt for a better salary. But Tim cautions everyone to be very careful when it comes to the old ‘grass is greener’ salary argument. 

Tim has seen many supply chain professionals become disgruntled because they believe they are being underpaid. Yet the places they get their information may not be what they seem: 

‘I’ve heard some people say that “money talks” and they’ll crack open an industry salary survey to try and determine whether they’re ahead or behind others in terms of the salary curve.’ 

‘The thing is, those surveys can be almost impossible to fully interpret, and are often misleading to the casual reviewer.’ 

Especially this year, Tim says, salary survey results may not be able to tell you much as many companies are freezing pay levels and asking employees to take pay cuts. The ‘greener grass’ may in fact not be green at all when it comes to pay. 

Yet should you still use these salary surveys as leverage in your own pay discussions? Tim says:  

‘In any salary discussion, it’s important to know what your range should be, based on firms of the same size, in the same industry and of the same profit level. But really, it’s hard to glean this information from a survey so likewise, hard to use this as leverage.’ 

‘Pay discussions should be based more on your achievements and your tenure with the firm, whether the firm has been profitable and frankly, whether or not there has been recent layoffs or downsizing.’ 

Tim cautions, though, that now might not be the right time to ask for a salary increase: 

‘In some cases, people should be happy to have a job, let alone be seen as gouging their employer for demands for a salary increase.’  

Tip 4: Consider the big picture – and put your negotiation skills to good use

The coronavirus pandemic has wreaked havoc on economies, lives and jobs losses, and that means that inevitably, some supply chain professionals might find themselves without work  this year. This is a terrible outcome, of course, but when the market picks up Tim does genuinely believe there will be more opportunities than ever. 

But when and if we all decide to accept an offer of employment, Tim believes that we should consider the ‘big picture’ of what an employer is offering; as it will be more important than ever before: 

‘When considering a new opportunity, of course look at the salary range, and compare this to your competitors and your industry at large.’ 

‘But remember, as your supply chain training  has taught you – salary, like price, is only one element to consider. Think long and hard about other benefits, for example: educational reimbursement, membership in your local supply chain association, bonuses if any, (and how frequently they’re paid), stock options, and healthcare and dental coverage.’ 

‘Post-COVID, increased benefits may be  easier to achieve than a dramatic salary increase..’ 

When it comes to negotiating your package, however, Tim believes that supply chain professionals need to remember their training: 

‘I’ve always maintained that you never get paid what you’re worth, but you ALWAYS get paid on how you negotiate and how well you have interviewed.’ 

‘It’s surprising that so many supply chain professionals go blank and completely forget their negotiation training when presented with a job offer.  After you feel confident that you’ve checked all of the boxes and know you’re the right fit, just like with negotiating with vendors, you can always ask for:  1. Time to consider it further,  2. For the offer to be put in writing, and for those adventurous  3. “Is that the best you can do?”’

With the final request, Tim says, if you execute it politely and professionally, you may be able to leverage up your offer. 

Tip 5: Ask the hard questions

With unemployment approaching an all time high, many of us may be forced into a ‘beggars can’t be choosers’ type situation, where we simply take the first job we can get. But nonetheless, Tim says, you should research the company you plan to join, because if you do end up having to leave after a short amount of time, it may not look great on your resume. 

In order to research the company you plan to join, Tim recommends the following: 

‘Find out about everything. Look up the organisation’s products and services, read their financial reports, look at their social media accounts. Make sure you take detailed notes in all of your interviews, and don’t be afraid to ask why they’re interested in you and how you might fit exactly within the role in their eyes.’ 

‘But more than that, ask some harder questions. Ask WHY the position is available, and what happened to the previous individual in the role?  Enquire as to how long they were in that role?   You’d be amazed at what you can uncover!’ 

There’s very few professions that will be able to claim that 2020 was a great career year. But for many of us in supply chain and procurement, we might just be able to surprise ourselves. 

Will you negotiate harder for your salary increase or greater benefits this year? Or are you concerned about competition? Let us know in the comments below.

Join Procurious to connect with 40,000 other ambitious procurement professionals and get free access to networking, industry news, training and much more. 

How To Lead Through Difficult Times

How do you lead through difficult times? What four key roles should all leaders play?  


This year has been one of the most challenging in modern times for business leaders, organisations and employees worldwide. And as many famous quotes allude to, nothing is tested more in challenging times than leadership. Many leaders step up and shine, yet just as many fall victim to stress, anxiety and frustration, leaving them a shadow of their former selves. 

So how do you make sure you’re the former? 

One person that knows how to lead in the best of times, as well as in the worst, is Vice-President of AI Applications and Blockchain at IBM, Amber Armstrong. Amber’s illustrious career at IBM started when she joined the company as an MBA graduate 13 years ago, and she’s quickly risen through the ranks. 

Amber joined us for our latest podcast episode in the IBM Career Bootcamp series to delve into all things leadership and in particular, how to lead through difficult times. 

Here’s what you’ll learn in the podcast:

What does being a great leader actually mean and how would you define your personal leadership style? 

Over the years, the definition of leadership has evolved enormously. Leaders, recognising that the more authoritarian styles of leading are no longer effective, have begun to diversify their styles away from command and control and towards a more inspiring vision of what leadership should be. But is inspiring others the sole role that leaders need to play nowadays? 

Not at all, according to Amber. Amber thinks that there are four things every leader needs to do in any organisation. In fact, Amber believes that these four things are so important that she had her team of executive managers agree to them as part of a leadership pact. 

Amber is clear on what she thinks these four things are: 

‘Leaders should, in my opinion, set the vision, communicate clearly, prioritise relentlessly and finally, coach.’

Throughout her career, Amber has used these four priority areas to not only lead others, but also to gather feedback and learn and what is and isn’t working. Beyond these things though, Amber has also put considerable thought and effort into her leadership style and has come up with a personal mantra that describes how she personally wants to lead: 

‘From a personal brand perspective, I aspire to be known as someone who is passionate, focused and kind.’ 

‘And in moments when things get particularly tough, there’s one particular thing I try to have more of.’ 

Discover what this is for Amber in the podcast.

How do leaders develop their own personal style? Should they do this through experience or through someone like a coach?

Amber’s personal leadership style is well-known and admired at IBM. But how do we all go about developing our own unique version of that? Amber has developed her style through a combination of experience and also through working with an executive coach, and she believes both of those things helped her get where she is today. 

From an experience perspective, Amber believes that it was through making mistakes and having empathy that she came to develop her current style: 

‘I joined IBM 13 years ago after I graduated from business school, and fortunately, I’ve been given a lot of opportunities here. This has led to many successes and also countless mistakes, but I’ve taken the opportunity to learn from each and every one of them.’ 

Amber remembers one particular period in her career where she came to understand the critical importance of kindness as an element of her personal leadership style: 

‘At one point, I was told I have to give a lot of people bad news, news which would affect their personal lives.’ 

‘I put up a sign at my desk with my mantra, the words passionate, focused and kind. I felt such comfort having those words there, it helped me to turn them into a reality throughout that difficult time.’  

Recently, Amber also started working with an executive coach who has further helped her shape her leadership style. This has been beneficial for one specific reason, she says. 

Find out what that reason is in the podcast.

Can you lead without necessarily having a leadership position? 

Amber has had an extremely successful career, and now manages a large number of people, including fifteen other managers. But for those of us who may not be in such senior positions, or perhaps those of us who may not be leading anyone at all, is it still possible to be a leader? 

Absolutely, Amber says. 

In fact, there’s one thing she thinks all leaders need to do, regardless of our level of seniority: 

‘If you want to lead, you need to take care of yourself first.’ 

‘For me, I do three things to take care of myself. Firstly, I run a mile, I make sure I sweat. Secondly, I walk 5,000 steps every day and then thirdly, I meditate for ten minutes. Self-care is so important.’ 

Beyond self-care, Amber also wants to let us all in on a little secret, and it’s an important one. In a nutshell, even leaders with a great amount of authority (those who are senior and have a lot of responsibility), don’t really have authority unless they can garner respect. Amber explains: 

‘To be a leader, you need people to respect you, you need them to trust you. So even if you’re an authority figure, sure, you can force people to do things but that isn’t leadership.’ 

‘Leadership is about creating clarity and building respect. You need to be able to influence others in a positive way.’ 

Also in the podcast: 

  • What needs to change about our leadership styles in these challenging times 
  • The pink recession 

And much more. 

Amber Armstrong’s podcast on leading through difficult times is part of our IBM Sterling Career Bootcamp. Designed to power your mind and help you excel, the Bootcamp consists of 6 electrifying podcasts with internationally renowned experts and speakers. Sign up here if you haven’t already.

Navigating The Next Normal With Outsourced Service Providers

What are the decisions to make when planning for the next normal in outsourced services?


As we slowly and cautiously, masks on and two meters apart, think about emerging from the COVID-19 crisis, there is quite a bit of uncertainty about what the world will look like when we step back outside. Knowing there is no cure or vaccine on the near horizon means workplaces will be different. The economic impact of the virus has changed the corporate landscape. What we thought was temporary just may be permanent.

For procurement teams managing outsourced services categories, there are more questions than answers. While we grapple with this uncertainty in our own companies and careers, we must also set expectations with suppliers. It’s a double challenge.

Early in the crisis, the focus in services was enabling a transition to work from home. While that may have been a small speedbump for office roles in developed countries like the US and Australia, certain offshore locations faced additional challenges. Offshore service centres scrambled to enable workers who used fixed desktop computers and worked in clean room environments to ensure data security. MSA waivers were given to service providers, and large firms compromised a bit on standards as we rushed into what appeared to be a short-term fix.

For the most part, providers managed to keep the virtual lights on; while reports varied, most services were stabilised within two weeks. Providers of voice services struggled a bit more, but end-consumers also adapted and accepted an online solution as a sufficient substitute for a call. We dug in and started to think about the next stage – what if the virus infected so many people that a significant percentage of workers were out sick or caring for loved ones? We talked about talent resiliency and resource continuity planning. Save for a few heavily impacted areas (New York City, Mumbai), the lockdown worked, the curve was flattened, and there has been no significant productivity drop (yet). In fact, some buyers and suppliers are claiming productivity is up in this new work from home world, and that’s changing how we view the future.

So, what’s next? At Everest Group we see two paths in play: a scramble to reduce costs and prop up financials in light of the recessionary environment, and a reset to what we call the “next normal” in outsourcing and offshoring. Where your company and your procurement team fall on these paths will vary quite a bit by industry, corporate strategy, and even timing.

The coronacrisis is changing outsourcing and offshoring very quickly


Shoring up cost structures

While some industries were hit exceptionally hard by the crisis (retail, travel, energy), some seem to be weathering the storm with a more limited impact (banking, food and beverage, life sciences), and others are thriving (high tech, home media). Regardless, the drop in consumer spending and high unemployment will have a ripple effect across all markets.

Smart CEOs and their boards have started to buckle down. In a late April 2020 survey, 71% of companies were looking at operational costs, while 62% were addressing external spend. Since then I’ve had contacts in procurement say “I thought our costs were competitive, but my leadership wants more.” Outsourced services spend tends to be a significant cost, so expect to hear that knock on your door if you haven’t already.

Where to start with cost cutting? We shared tips to optimise and modernise delivery in our “5 Cost Levers To Pull Right Now With Your Outsourced Services” webcast on Procurious. That advice still stands, and you can hear more directly from our pricing assurance practice leader in this new session on “Outsourcing Pricing: Key Opportunities to Improve Costs Now”. As we said in both sessions, this is not a time for hard line, tactical negotiation. It’s a time to look at modernising your model and making structural changes that benefit both buyer and service provider. Regardless of where you are in the term of your contract, it’s a time to arm yourself with knowledge of the market and have a serious conversation with providers about how to take costs out of the system.

What are you doing to prepare for the “next normal” (or to return to some sort of business as usual)?

Everest Group 2020

Planning for the next normal

The other path is nearly universal to all organisations: navigating next steps as we struggle to emerge from the crisis. While these decisions stand on their own, they are also deeply intertwined with cost takeout initiatives. Through many conversations with service providers and buyers we have outlined six key areas of focus. No one knows all the answers to these questions yet, but for each component there are targeted questions to ask within your organisation and to your service providers.

Sourcing strategy and provider portfolio

  • Do we need to prune our portfolio to strengthen the core?
  • Shall we consolidate providers or diversify our portfolio?
  • Which activities should be brought in-house?
  • Which new activities could be outsourced?
  • Are there changes in the scope of our agreements we should consider?

Solution design

  • Should we shift more work onshore or offshore?
  • Where are we too geographically concentrated?
  • Which countries would diversify our portfolio?
  • Where do we need multi-location mitigation plans?
  • How will office space restructuring affect service centre output?
  • Will remote work be allowed or encouraged by providers?
  • What new skills are required? Where is retraining needed?

Pricing and cost

  • How should we change our pricing model?
  • Are we paying the right rates?
  • Are we getting enough value?
  • Where can innovation reduce operational costs?

Performance management

  • How do we measure productivity in a remote environment?
  • How do our SLAs and metrics need to change?
  • What new relationship management techniques are required?
  • How do we build in incentives for innovation?

Policy and contracting

  • How do we ensure information security and compliance in the new environment?
  • What policies need to change to support this new strategy?
  • What flexibility needs to be built into contracts?
  • How has liability changed for either party?

Risk management

  • How should our business continuity planning change?
  • Which new data sources do we need to improve monitoring and mitigation planning?
  • How can we enable more agile sourcing decisions?

Decisions to make when planning for the next normal in outsourced services


In our recent discussions, the greatest focus has been on planning for solution design, risk, and governance. Of course, the path for each of these areas will dictate cost models and price. A few significant decisions set the foundation for others and seem particularly tricky. The first is partner strategy. Balancing a multi-country strategy to mitigate risk seems to contradict the desire to bring down costs by concentrating work with fewer providers. While this seems counterintuitive, we’re at a point where everything is on the table. It makes sense to reconsider location models while reassessing the partner portfolio.

Even the concept of pushing for cost reductions feels a bit tacky for some vendor management folks, given these are strategic partners and we’re all weathering the same storm together. That’s why we need to think win-win in modernising delivery and reshaping solutions in a way that benefits both parties. Simply asking for line item discounts for crisis-related shortcomings will not get us there. We often talk about “strengthening the core” – that means letting go of lower-performing providers to focus efforts on high value relationships with strong partners. Keep in mind that most of the top 25 service providers are in a relatively good place financially. While they don’t want to give up margin, they do want to do the right thing for their clients, including structural and digital improvements. They can even enable these initiatives both financially and with a different level of expertise. While these may not be the easy, short term cost take-out tactics we might want, they leave us with a stronger and more cost-efficient portfolio longer term.

I wish I could end this blog post with a very simple recommendation for surviving the crisis and thriving in the next normal, but that just isn’t realistic. There is no one right answer. Of course, it depends on your industry, your current portfolio, and many other factors. You can, as a procurement professional, arm yourself with the tools to facilitate the development of a plan with all stakeholders. Start with the checklist above to make sure you don’t miss critical decisions. Dust off your make/buy model, category strategy, and any previous location analyses. Check in on your rates and contract competitiveness, performance data, and risk profiles. Ask your service providers their proposed plans, see how they mesh with your MSA and policies. Your team has decisions to make, your role is to make sure they are fact-based and all possibilities are on the table. If you’re missing parts of this list or need a sounding board, the Everest Group team is available to help.  

Assistance for services buyers

During the COVID-19 crisis we are offering pro bono assistance to services buyers in the procurement community:

  • A locations data check comparing two global locations on key factors such as size of entry level talent pool, market landscape of providers, financial attractiveness, and operating and business environment risk – consider whether geographic diversification is a smart move.
  • A service provider risk profile covering four key parameters (finance, governance, operations, reputation) –  find out if there are underlying concerns with your provider beyond the immediate crisis.
  • Complimentary price checks on up to three standard roles in three different locations – a pulse check to see if your rates are in line or out of line with the market.
  • A conversation with one of our analysts on any global services related topic – ask questions, test your strategy, or get feedback on what others are doing from our senior team.

The Everest Group team is excited to be working with Procurious, and we look forward to helping members create value for their organisations.

Amy Fong

Vice President – Strategic Outsourcing and Vendor Management
Everest Group

Job Cuts: Is There Light At The End Of The Tunnel?

COVID-19 creates new career opportunities for procurement and supply chain professionals, despite recent job losses and pay cuts.


COVID-19 wreaked havoc on the job market. The most recent U.S. analysis reveals that 21.5 million Americans remain unemployed. In the European Union, 397,000 people lost their jobs in April, according to the EU’s June report. Globally, Citi projects that 44 million people around the world, excluding China, could lose their jobs due to the pandemic.

The procurement and supply chain function is not immune. Our research, which was conducted between 4/28 – 5/12, found that 20% of supply chain and procurement departments experienced job cuts due to the crisis. Diving deeper into those numbers:

  • Nearly half (48%) said the job cuts were limited to about 10% of the team
  • 15% said their teams experienced cuts of 50% or more

Similarly, 23% of respondents said they were forced to take pay cuts. Of these:

  • 38% saw pay cuts of about 15%
  • 32% saw cuts of about 25%
  • 10% saw cuts of about 33%
  • 19% saw cuts of 40% or more

Millennials took the most pay cuts (32%), while Boomers took the least (18%).

While these numbers are alarming on the surface, they may not be as severe as they appear. A recent U.S. survey from the Census Bureau found that 47% of adults said they or a member of their household had lost employment income since mid-March. This may indicate, on a comparative and anecdotal level, that procurement and supply chain practitioners have somewhat been spared.

The harsh reality: Given the magnitude of job loss across the world, it was always a matter of how much, not if, procurement and supply chain functions would get hit. Across many industries, it simply did not matter how talented you are, or the results you produced. Many organizations saw revenues drop by nearly 100%, which naturally (and unfortunately) affects employment.

The good news comes in what’s next. Our research found that the majority of organizations are valuing procurement and supply chain like never before. More than ever, procurement and supply chain leaders play a critical role in organizational resiliency, recovery, cost controls and business continuity.

Go-forward job confidence reflects this thinking. On a scale of 1 – 5, weighted job confidence for the next 12 months is 3.96—meaning procurement and supply chain practitioners are more confident than not. Nearly half (43%) said they were extremely confident they would have a job 12 months from now, compared to only 5% that said they were not confident. We see this confidence mark as an incredibly positive sign considering the employment turmoil around the world.

Could this confidence – along with the newfound appreciation for procurement and supply chain – lead to more promotions? While it’s safe to assume most organizations will take a tepid approach to compensation and spending for the foreseeable future, we believe this crisis will create fresh career and financial opportunities for Generation Next. If anything, this crisis – and the strong performance of teams across the world – crystalizes the importance of investing in people, technology and the overall function, which should open up more (and new) doors.

Building on this dynamic, the majority (73%) of organizations we surveyed are planning seismic shifts in supply chain and procurement strategy post-pandemic, including supply base expansion, inventory management changes, and reductions in supply chain globalization. These changes represent fundamental shifts to traditional approaches, and will require substantial smarts, experience and an immensely committed and results-driven team for success. All of this points to higher demand for great people. 

There’s no escaping the chaos caused by COVID-19, especially when it comes to jobs. But for procurement and supply chain leaders, the light at the end of the tunnel is bright.

Big changes ahead for supply chain and procurement strategy. What are they, and how do we get ahead? Find out now in our ‘How Now?’ report.

Supply Chain And Procurement Leaders Anticipate Seismic Post-Pandemic Strategy Shifts As Executives Brace For Peak Of Impact

Confidence levels remain high, despite widespread disruption


Today we released the results of our How Now? The Supply Chain Confidence Index. The research reveals that nearly all (97%) of the 600+ professionals we surveyed experienced a supply chain disruption related to COVID-19. In response, the majority (73%) of organisations are now planning major shifts in supply chain and procurement strategy post-pandemic, including supply base expansion (38%), reductions in supply chain globalisation (34%) and increases to inventory levels (21%).

When asked where COVID-19 had the biggest single impact on their supply chains:

  • 31%: Decreased demand for products and services
  • 26%: Lack of available supply due to production downtime and shutdowns
  • 21%: Logistics and transportation slowdowns and delays

“We expect to see seismic strategy changes in the months ahead that fundamentally alter the makeup of global supply chains,” said Tania Seary, founding chairman and CEO of Procurious. “For decades, low-cost country sourcing and offshoring was the foundation of global supply chains. The pandemic has many executives considering reducing globalisation—and for good reason. But these changes won’t come easy.”

Reflecting on lessons learned, 39% of those surveyed said they were blinded by a lack of supplier and geographic risk and 29% said they didn’t understand the upstream supply chains of their suppliers. Fifty-nine percent of respondents believe the Fortune 500 should reduce globalisation by localising supply chains and bringing manufacturing back home.

Confidence Remains High, Despite Looming Uncertainty  

Uncertainty around when the disruption will peak continues to loom. Procurious found that while 34% of business leaders believe the worst has come and gone, nearly half believe the peak impact will occur within the next six months.

“The message from frontline practitioners is that the end to these supply chain disruptions is not near. Most professionals believe the crisis will peak in or after June,” said Seary.

As a result, supply chain and procurement teams will continue to play a key role in recovery and resiliency initiatives. During the crisis, 40% of respondents said their recommendations were solicited more than usual internally, and 22% said they now have a seat at the executive table.

This growing platform has inspired a new generation of professionals to further pursue careers in supply chain and procurement. Procurious found that 62% of all respondents and 71% of millennials said their interest in procurement and supply chain has increased as a result of the pandemic.

“We found that most practitioners stepped up in a big way and responded effectively to a crisis that literally brought the world to a halt,” said Seary. “The spotlight on performance will lead to increases in budgets, tech investments and board-level involvement, and create new opportunities for practitioners to make their mark at the executive level.”

Analyzing employment trends, Procurious found that 20% of supply chain and procurement departments experienced job cuts and 23% of departments were forced to take pay cuts. However, go-forward job confidence remains high. On a scale of 1 – 5, weighted job confidence for the next 12 months is a 3.96—meaning employees are more confident than not.

The full report, which dives deeper into COVID-19’s effect on supplier payments, technology investments, jobs and supply chain and procurement operations, as well as plans and predictions for the future, is now available for download.

Big changes ahead for supply chain and procurement strategy. What are they, and how do we get ahead? Find out now in our ‘How Now?’ report.

Methodology: 605 survey responses were collected via SurveyMonkey between Apr. 28 through May 12.

How To Train Your Brain To Cope With Covid Strain

As we emerge from lockdown and leave the safety of social isolation, we will need to drain what’s left of our almost empty resilience reserves to return to – or look for – work. Feeling anxious? Well, you are not alone … but the good news is that resilience is a learnable skill and boosting it could help you cope with the current crisis in confidence caused by the coronavirus.


If your resilience reserves are running low, you are not alone.

Mental health issues were already at epidemic levels before the coronavirus pandemic – and Covid-19 has only made them worse.

So, if you are worried about losing your job (or no longer have one), are feeling isolated and unsupported or are fearful about your health or that of a loved one, you will inevitably be feeling stressed – in the UK alone, half the population say their anxiety levels are “high”. 

In the USA, 33 million Americans have already lost their jobs as a result of the pandemic, and although 8 in 10 are hopeful they will be re-hired, the coronavirus crisis has left 9 in 10 stressing about finances.

While in Australia, 1 in 4 say they are overwhelmed by loneliness when working from home, -with half of those economically impacted due to reduced hours or loss of job and stressed about job security.

So, this is a global problem – and one that affects professionals across all sectors. Those working in procurement and supply, which have seen dramatic shifts in supply chains as well as working practices, are not immune and are understandably feeling the strain.

Accept that this is the ‘new normal’

Right now, the only thing that is certain is uncertainty. So, it’s important to be kind to yourself and understand that the coronavirus crisis will inevitably take its toll on your mental wellbeing.

This is not a sign of weakness. It’s biology. In response to high levels of stress and anxiety, cortisol and adrenalin will pump through your body and your brain will start to function differently.

Blood flow will be directed to your flight or fight system priming you to run way from danger and, as a result, you will become more reactive and emotional and make decisions that are less rational and logical. No wonder we are all feeling unsettled.

Awareness of your mental state is key

So, the first step is to understand that there are physical – as well as psychological affects – of the coronavirus crisis.

To really understand how this is impacting you, use the heart rate monitor on your fitness tracker (if you use one) to see when your pulse spikes. Is it just before those chaotic conference calls where everyone is clamoring to be heard? Or does it spike when you wake up, check your emails and realize that you face yet another day of uncertainty?

According to Track Record, which uses Olympic training techniques to teach execs about stress, the key is to look at your heart rate variability not just the heart rate itself.

A sleep tracker is another useful tool. Poor sleep is a key indicator of high levels of stress and also shows that your body and mind is not getting a chance to recover from the pressures of the day. Recovery is key to boosting resilience but it is hard to find time to “get away” from the Covid crisis particularly as news of the latest infection rates and deaths is streaming 24/7.

Accept that your mental resilience important

At the same time track your mental state – many of us are hooked on fitness right now logging our times on the running machine etc. So just add this to the list. Note your feelings and what triggers you to feel stressed and anxious.

This will help you to monitor how your resilience is fluctuating. As with any exercise program (mental or physical) it is important to know where you are starting from so that you can track your progress as you build your mental toughness.

That’s why The Road to Resilience: Mental Toughness leadership series for The Faculty Management Consultants starts with self-awareness, to measure your MTQ (using a mental toughness questionnaire).

The Faculty (which works with Australia’s leading procurement teams and – like many of us – has adapted to the “new normal” by running everything online), now has a special focus on emotional resilience, in addition to technical skills, because it’s so important as we navigate this period of uncertainty.

So why does it matter? Well, being aware of where you sit on the resilience scale enables you to not only improve your score, it enables you to be more emotionally intelligent.

“You can become more aware of how tough or sensitive you need to be in any given situation – when to flex the toughness muscle, or give it a rest,” says Sally Lansbury, memberships director at The Faculty. “Remember, there are circumstances where having mental sensitivity is required… particularly right now.”

In addition to being self-aware and adapting your mental toughness to different situations, it is important to be risk-aware – something that the intrepid explorer Charlie Walker talked about in Procurious’s recent Virtual Future Leaders Roundtable in the UK.

Called “Rapid, Risk Aware and Resilient”, Charlie talked to procurement professionals about training to have fast reactions and training to deal with moments of risk. And while procurement professionals are not facing the challenge of a 43,000 mile bicycle ride across 60 countries (just one of Charlie’s many feats of endurance) they can train to boost their 3Rs, including resilience.

…and that you don’t have to struggle

We all know that some people are more resilient than others. However, what you might not realize is that you can change where you stand on the mental toughness scales – that’s because resilience is a plastic personality trait which means it can be developed.

So, in addition to being aware of how mentally tough you are – and how tough or sensitive you need to be at any given time – you should also understand that mental resilience can be learned and that now is the ideal time to start boosting your MT score.

The first step is to understand what it really is:

Mental Toughness describes the quality which determines, in large part, how we respond to stress, pressure and challenge … irrespective of the prevailing circumstances. – Dr Peter Clough.

Much of what we do is habit and that includes our response to stress and pressure. In the definition of MT “how we respond” are the three key words.

As part of your awareness exercise – which will help you to identify when you feel less resilient and when your stress levels spike – also take a note of how you respond to change and challenge.

Do you feel hopeless? Or overwhelmed? Perhaps you are angry or anxious?

Once you are more aware of your default setting in terms of “how you respond”, then you can start to change these automatic behaviours to the ones you want to adopt.

Changing any behaviour pattern takes time, but right now you can start with the first step: awareness.

This year’s Career Bootcamp is designed to ‘Power Your Mind’ and set you up with the skills to innovate, play to your strengths, and be more resilient. Register for your digital ticket here.

You Ask All Of Your Suppliers For A 5% Discount. What Can Possibly Go Wrong?!

What does best practice supplier relationship management look like? Not like this…


With sales at her company in freefall due to the Covid-19 crisis, the pressure was on for Sally’s* procurement team to reduce costs. In a desperate pitch to do what she could, Sally decided to issue a letter to all suppliers, asking for an overall price reduction of 5%. In exchange, Sally dangled the carrot of ‘to-be-determined’ commitments that the business would fulfill post-Covid. These could include, she thought, accelerated payment terms, additional volumes, or contract extensions.  

What could possibly go wrong, she thought, as she hastily finalised the letters and forwarded them on. Even if most say no, some might say yes and procurement will be lauded as heroes. 

We’ve all been in Sally’s position – or if we haven’t, we certainly can imagine being put in it. When faced with the pressure that a crisis brings, isn’t it always the best idea to at least try to reduce costs by asking for a discount? On the surface, it seems like a logical approach – all you need is for one supplier to agree and your effort pays off. But is it possible that taking such a black-and-white approach can end up costing you more than it saves you? 

Issue 1: Vague notions of success can’t be measured 

In Sally’s situation above, you could argue that ‘success’ looked like one supplier agreeing to discount. But what if they agreed to a 1% discount, would that suffice? Or if they agreed to a 5% discount without complaint, would you ask if you had done more? 

The problem with a strategy of ‘doing something and hoping for the best’ is that there really is no benchmark for what ‘the best’ is and whether it has been achieved. This leads to issues with measuring success internally, and naturally, the same question is always asked: how has procurement added value here? 

Issue 2: No discount is as simple as asking – negotiation will be required 

If achieving a 5% discount was as easy as sending a letter, then procurement would likely be out of a job. Herein lies another problem with Sally’s strategy – it’s unlikely that vendors would respond with a simple ‘yes’ or ‘no,’ leaving her to need to negotiate for whatever she could get. 

And these negotiations would not be simple. Those suppliers who may be inclined to agree would expect more clarity and certainty on any future commitments from the company, which could turn discussions sour, quickly. 

Those on the other end of the spectrum, however, may feel the need to explain why they can’t offer a discount, and may enter the conversation feeling defeated or exposed. 

Whichever way these discussions transpired, they would certainly be time-consuming. In an environment where time is money, you have to ask yourself what the small percentage gains you might secure are really worth. . 

Issue 3: Your supplier is in a crisis, too 

Supplier Management 101 tells us that we should treat our suppliers like we’d like to be treated. But is sending out a generic request the way we’d like to be treated, especially if we’re in crisis too? 

The answer is a resounding and obvious no. Any suppliers that Sally is dealing with would also be deep within this crisis, and may in fact be considering a price increase to save themselves. On top of this, a lack of personalised correspondence could be perceived as insulting to the relationship. The request might net a discount, but it would cost far more than that in future relationship capital. 

If Sally’s plan wouldn’t work, then what would? 

Step 1: Shore up your fundamentals 

In times of crisis, and indeed, in ordinary time procurement must have a clear goal and an execution plan for what is needed for the business operations to continue undisrupted (or minimally impacted) and more importantly, for creatively increasing value to the organisation. 

These are essentially the fundamentals required to maintain a strong supplier base and elevate procurement. From a pure supplier relationship perspective, engaging strategic suppliers to assess their crisis preparedness and ability to continue to serve the organisation is the first step. 

Step 2: Creatively and empathetically engage your suppliers

Once you’ve got your fundamentals organised, you need to engage your suppliers in strategic conversations about how to creatively increase efficiency, optimize processes quickly, reduce waste (of time, resources and costs), and where possible, decrease costs and deliver additional value. 

Beyond this, you also need to discuss with them what value is added,  how much, for how long, what are the contingencies. This will help you establish a win-win approach with short and long term impact. 

The idea is that a continuation of a growing partnership will drive the right behaviours, not just during this crisis but in the future. Supplier-driven innovation should always be a top priority to both procurement and the entire organisation. 

After you’ve finished your initial discussions (and note, these type of discussions should always be ongoing) use learnings from them across all other supplier segments. The behavior you want to drive here is ensuring suppliers not only want to continue doing business with you but are eager to strategize with each other during the crisis.

Going back to Sally’s situation, this approach works for a number of reasons. Even if suppliers couldn’t immediately offer reductions they will be clear on expectations and will be committed to perform at a high level and produce ideas for the company, while increasing supplier engagement and value as a byproduct. Suppliers will be willing to explore solutions to avoid disruption, which is exactly what the business needs. In addition to this, the effort expended is targeted so no time will be wasted and in fact, the time spent may even produce market intelligence that can be brought back to the business to refine their own mitigation strategies. 

Also, finally and perhaps most importantly, the role of the procurement will be elevated to a truly strategic function (with lasting impact) to the organisation.

Continue supplier relationship best practice? 

For procurement professionals that realised early that Sally’s approach wouldn’t work, none of the advice here on how to rectify it should come as surprise: it is, quite simply, supplier relationship best practice to treat your suppliers in this way. 

In fact, for organisations that already implement supplier relationship best practice, they may not even need to take these steps – throughout this crisis, their suppliers may already be knocking on their door with creative mitigation strategies. They may even be using this crisis to bring the relationship to the next level. 

But for those who are yet to establish supplier management best practice, this example provides the perfect reason why you need to. Supplier relationships are a key enabler to business success, and when they are strong, the risk of business disruption is greatly reduced. 

What have you done to strengthen supplier relationships throughout this crisis? Let us know in the comments below.