How UK is fighting the Procurement Challenges of COVID-19?

How UK is fighting the Procurement Challenges of COVID-19?

Prepared by: Procurement Freelancers

Introduction

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The COVID-19 pandemic outbreak has affected the lives of every individual on this planet, with the economic sector dealing with the major downturn.

Unemployment is at its peak, supply chain officers are dealing with maximum disruptions, quarantine measures are laid down everywhere, business owners are dealing with lost revenues, and shutdown of factories, the pandemic has shown the worst side of nature that the world has never experienced before.

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With the recession already in progress, the procurement experts in UK are looking for the optimal ways to deal with the critical situation.

Typically, at these times, organizations find it easy to drill deep into the sourcing plans and search for ways to mitigate the risks related to spend management, analytics, and supply chain processes. The CPOs of UK are following the same path and focusing on the spend management practices to overcome the crisis.

In this context, you will learn about three strategies optimized by UK business leaders to fight procurement challenges.

Build a Robust Procurement Team To ensure a fluent procurement system, the sourcing agents are trying hard to make the procurement strategies right. They are focusing on building a strong procurement team capable of handling and mitigating the worst effects of a declining economy by assisting firms and helping them to maintain a smoothly operating and financially stable supply chain system.

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Whenever any organization has experienced a declining environment, the employees have always looked upon the procurement team as their lifesaver. It is no different this time as well. The procurement agents in UK are stepping in to help to reduce the overall spend of an organization to weather the storm.

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Focus on Emergency Planning There is uncertainty everywhere including the market conditions that can rise or experience a downfall anytime. Investing in making a plan that can work in emergencies is the best investment any organization can ever do to thrive in an uncertain market.

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The only way to mitigate dangers during critical times is to factor contingencies into the procurement strategies.

The procurement experts in UK are sketching roadmaps considering the possible operational and revenue costs. They are making business plans depending on the current market outcomes and future disruptions, thereby enhancing the spend control and auditing the targeted savings to respond to crises efficiently.

Discuss Terms on Contracts The procurement leaders in UK have taken the road that does not lead them to handle suppliers proactively.

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To deal with an emergency you draw contracts that do not have simple terminations. You need to kick start renegotiation by clearly stating your requirements to your suppliers. Familiarize yourself with the rights of both parties when renegotiating any contract, understand what is more important for your organization, differentiate between the negotiables and non-negotiables before contacting the supplier team. This is how you can influence the negotiation while understanding the external factors and spend trends.

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