Tag Archives: operational risk

Three Ways Businesses Can Emerge Stronger From The Pandemic

Three main trends will positively impact the Procurement space post-COVID-19 and beyond and help in responding to unexpected challenges


What a strange year it’s been. As we marked the start of 2020, and news started to circulate about a virus in China, no one could have anticipated the global health crisis that was on its way.

As more countries ease lockdown restrictions and business find new and creative ways to meet the needs of their customers, there are many learnings we can take from the pandemic. These range from critical changes to growth plans to adjustments to company culture to operational improvements to increase supply chain agility.

Like many companies, we recognized early in the crisis the difficulties we would all face in this new reality. To get ahead of the curve, our co-founders Samir Bodas and Monish Darda, along with our leadership team, developed a framework based on our values of Fairness, Openness, Respect, Teamwork and Execution—FORTE—to help everyone at Icertis make decisions to meet the demands we faced.

We call that framework our four rings of responsibility—taking care of self, taking care of family, taking care of community and taking care of business—and prioritize them in that order. We see the Four Rings of Responsibility as our way of amplifying our FORTE values to ensure we do our part to help win the battle against COVID-19.   

COVID’s Impact

Outside of our own workplace, I’ve been speaking with our customers about how the industry is coping with the upheaval. Their experiences map closely with the findings from the ‘How Now? Supply Chain Confidence Indexfrom Procurious that show only 1% of procurement/supply chain professionals felt ‘frozen’ by the COVID crisis. This is a testament to the rate of innovation across the profession and the strong role technology is now playing in helping drive speed and agility within procurement.

There’s no doubt that the pandemic exposed weaknesses in modern supply chain strategies as evidenced by the survey’s finding that 38% of respondents plan to expand their supplier base over the coming months. One of the main lessons that we are hearing from customers and prospects is that businesses need to create stronger, more flexible and diverse supply chains. To do this, it will be essential for businesses to identify areas in their supply chain where efficiency improvements can be made.

Leading brands are increasingly realizing this work starts with contracts, which define how your supply chain runs. By harnessing the critical business information in their contracts, companies can quickly address areas like value leakage and regulatory compliance, while accelerating the pace of supplier onboarding and reducing business risk.

Three Post-COVID Trends

In fact, a greater focus on risk management is one of the three main trends that will positively impact the procurement space post-COVID-19. Risk management used to be an abstract concept in the C-suite, only a concern for the CFO or the audit committee; now it is painfully tangible to everyone in the organization. Every business now recognizes (or should recognize!) that they need to take a programmatic approach to responding to black swan events. This underlines the need for having solutions in place that will allow organisations to clearly understand the risk/reward trade-off in all business processes. For example, being able to identify and manage risk throughout the contract lifecycle, is enabling procurement teams to examine their sourcing strategies to ensure they are not overly dependent on a single supplier. In the current business environment, where unfortunately many businesses are still struggling to survive, having a multi-sourcing strategy in place is a business imperitive.

Secondly, we will see greater alignment between the CFO and CPO. By the nature of their roles, CFOs have always been focused on those technologies that can give them business oversight of income and spending. However, the impact felt by COVID on that cashflow—from supply chain failures to shift in demand—has increased their focus on working with other areas of their organisations to identify and mitigate risk. As a result, they have become more invested in being able to structure and connect all of their company’s contract data, applying Artificial Intelligence (AI) tools to enable them to quickly surface and respond to threats, growth opportunities and challenges.

And finally, it’s well documented that the pandemic has forced an acceleration of digital transformation efforts. Satya Nadella put it best when he observed, “We’ve seen two years’ worth of digital transformation in two months.” It is clear that innovation will take a front seat in the post-pandemic business world. Companies have seen the benefits of having cloud-based technologies and processes such as contract lifecycle management available to them when working remotely. I anticipate that we’ll start to see increased investments across the board as businesses look to protect themselves for future disruptions and reinvent how they do business.

Then beyond digitisation, a greater focus will be placed on investing in technologies that can enable advanced data analytics, so that businesses are able to use this insight to keep out in front. This is where contracts will take a central role, providing more intelligence and connecting to key business processes so they are able to provide the right foundation for growth and evolution, and allow organisations to respond to unanticipated challenges and changing marketplace dynamics. 

It’s been a challenging few months for everyone, but I am more confident than ever that if we keep our four rings of responsibility top of mind and take the lessons learned from COVID seriously, we will look back at this strange time and realise that it transformed the way we do business for the better. 

Procurement’s Time To Lead Is Now. Here’s How to Take Advantage.

A new survey of 500+ professionals reveals where procurement must focus to establish leadership and earn executive trust.


Procurement: it’s your time to lead. New research from Procurious and Coupa, released today, reveals that nearly two thirds of professionals have seen trust increase with the c-suite over the past three months. Similarly, more procurement leaders report having a seat at the executive table today compared to May, when we asked the same question as part of our Supply Chain Confidence Index.

“Procurement leaders continue to step up and executives are taking notice,” said Tania Seary, Founding Chairman of Procurious. “Procurement plays a critical role in navigating the uncertainty we face today. The function’s stellar performance opens the door for more – more recognition, trust, and opportunities to lead. It’s time to take advantage.”

Procurious and Coupa surveyed over 500 procurement and supply chain professionals in July to assess the state of the function and what’s on tap for the second half of 2020. Reflecting on procurement’s strategic position within the organisation, just one-fifth (21%) report that they are still being viewed tactically internally. While that number is still higher than we’d like, most would agree that for a function that’s historically struggled to stand out and get the recognition it deserves, we’re moving in the right direction – in a big way. Consider that over the past three months, only 7% said they did not see trust increase between procurement and the c-suite.

“Procurement today has a clear opportunity to capture our seat at the table. The findings of this survey highlight how important it is for us to think strategically and ensure our objectives are aligned to the board and our peers in the c-suite,” said Michael Van-Keulen, CPO, Coupa. “We must step up to help our organizations not only control costs, but also mitigate risk, maximize value, and increase the agility needed in today’s business environment.”

These results build off Procurious’ research findings from earlier this year. “In June, we uncovered clear indicators that the c-suite was paying more attention to procurement and supply chain. This trend is accelerating as executives recognise procurement’s unique and essential position in the ongoing recovery,” said Seary.

Procurement leaders looking to capitalise on this newfound opportunity should focus on delivering results that increase resiliency and continuity, and improve the bottom line. According to our research, the top three areas the c-suite wants procurement to contribute to are mitigating supply risk (70%), containing costs (69%) and driving business continuity (64%).

“At first glance, we’re seeing a back-to-the-basics approach for procurement teams, with a laser focus on savings, spend visibility, resilience and risk mitigation. However, when you step back you quickly realise this approach is anything but traditional. The desired outcomes may be similar, but companies are investing more strategically, aggressively and intentionally,” commented Seary.

Second Half Procurement Priorities: Controlling Costs and Risk 

Procurement’s top three priorities for the second half of 2020 are similar to what we referenced above: containing costs, mitigating supply chain risk, and supplying the products and services needed to maintain operations.

Naturally, managing supply chain risk remains front and center for organisations across the world. But risk takes on many different forms. What are executive teams most concerned about right now? The top five areas, in order of concern, are:

·       Operational risk

·       Supplier Risk

·       Business environment risk

·       Reputational risk

·       Cyber risk

Interestingly, the most prominent risk differs geographically. In North America and Asia Pacific, executives are most concerned about cyber. In Europe, the primary concern is operational risk. Either way, stronger investments in supply chain risk management will undoubtedly become one of the lasting marks of COVID-19. Mature procurement teams will never take supplier health, collaboration and risk lightly again.

When it comes to business risk, there’s often more than meets the eye. The survey also found that more than 80% of organisations have significant gaps in spend visibility, which is its own risk. This finding poses an important question: How can procurement teams lead and control supplier risk if they lack full visibility into where money is being spent?

Equipping Procurement to Lead and Thrive

Looking at the next 6 – 12 months, economic uncertainty was the number one concern for survey respondents, followed by cash and risk. Given the stakes – and procurement’s proven ability to add value in business-critical areas, including risk, resiliency, and cost containment – the majority of organisations (93%) are investing big to propel procurement forward. The top three investments organisations are making in procurement leadership are:

·       Data and analytics

·       Talent development

·       Technology

“COVID-19 continues to act as an accelerant for procurement transformation. The business case is right in front of us, and organisations are investing accordingly.” said Seary. 

While organisations are finally stepping up to fund procurement initiatives, the function still has an important role to play to shape the future. 

“We need to ensure the investments are strategic, and not tactical. We need to set the agenda, and ensure the c-suite’s vision for procurement is aligned with what we know is possible. It’s our time to lead, and we need to do it right,” said Seary.For more insights – including details on procurement priorities, operational gaps, investment strategy, supply chain risk and more, join Procurious and get the full report: Procurement’s Time to Lead.