Procurement management in times of crisis

Managing procurement in times of crisis isn’t an easy task. It’s true that the current scenario has concerned many company leaders and, with that, several uncertainties are arising.

What measures are required to prevent shortages in times of crisis? What should procurement teams prioritize in case of instability scenarios? How to find suppliers in case of urgent need?

These and other questions were answered by Luiz Gastão Bolonhez, VP at Mercado Eletrônico, and Genésio Couto, VP of Supplies, IT and Communication at Atvos, during the live meeting that took place on April 9th.

Now you will be able to see a summary and the main insights of this conversation, here at ME’s blog.

Keep on reading!

Communication is vital in times of crisis

In B2B procurement, the first step to mitigate impacts of a crisis is to talk and listen to buyers. Clear communication is required to dispel doubts and have proper feedback.

It’s important to see them too, to understand the mood of each professional. Therefore, meetings held through videoconferencing can help a lot here.

Working remotely isn’t easy, but it’s a challenge well accepted by everyone.

The home office model drives professionals away and brings them closer together at the same time; it all depends on how active the leadership is and what actions will be taken to define the team’s work habits. Daily or weekly alignment meetings are well seen in this case.

Digitization of the procurement area

We all know that the world won’t be the same after the Coronavirus pandemic. But to minimize the changes, the procurement area must be digitized and the buyers must be well informed and committed to the business. This digitization will prevent the company’s operation from stopping, and mitigate the problems faced due to this difficult moment.

Technology promotes automation and makes this area more fluid, allowing to take actions remotely, without hindering the progress of business processes. We can say that companies that are already digitized are in a privileged position in this crisis.

Compliance x emergency purchases

In view of the period we are all experiencing, it’s common that some products or raw materials may be lacking. This causes insecurity, as companies may possibly have a hard time finding certain inputs from their suppliers, to keep on operating.

For this reason, it’s only natural that the companies look for new suppliers on an emergency basis, to remedy this deficiency. However, transparency is a must during such process modification, along with communication and integrity.

There is no problem looking for new suppliers for raw materials, as long as compliance is observed throughout the process, to ensure agility and compliance of operations.

Circumventing difficulties to find supply alternatives

The routine of businesses has changed. If you continue to act as you did before all this happened, you won’t be able to adapt to the new scenario. That is, you must think differently.

To overcome difficulties, having a digital platform is vital. With it, you will have control of certified suppliers on your base, and will be able to alert them about your needs, thus arousing interest from the market. You will only be able to relate and do new business if you inform suppliers about yours every new need.

This action will enable interested companies contacting each other, decreasing impacts in the areas, and overcoming the difficulties of doing new business.

These were some insights from the conversation between Luiz Gastão Bolonhez, VP at Mercado Eletrônico, and Genésio Couto, VP of Supplies, IT and Communication at Atvos.

Click here to watch this chat in full!

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