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Author's profile photo Rajesh Raj

Navigating outcomes for your procurement and supply chain transformation during Covid-19

Navigating outcomes for your procurement and supply chain transformation during Covid-19

Covid -19 has not only disrupted the procurement process and current supply chain value system but has also become unpredictable with the upcoming risk of second waves in many countries. In a recent study done by SAP in collaboration with Oxford Economics, only 23% of procurement and supply chain executives can gain a clear view of overall spend automatically in real-time. Furthermore, 49% still manually analyze data to inform decision-making.

Last year, during my discussion with supply chain and procurement leaders, there is a consensus to move beyond just cost-saving exercises and bring a fresh perspective to the supply value chain. It should not only address uncertainties, but also be able to act more ethically, responsibly, and be agile enough to explore future challenges and opportunities. They agreed on the need for a systematic move from linear to the circular value chain.

To navigate the successful systematic transformation, outcomes need to be clearly defined and evaluated against each other. It can be achieved by.

  • Aligning organizational vision and map backward towards creating an agile framework, supporting change, and incorporating technological innovation in AI and ML.
  • Leverage the existing data helps to understand the decisions made in past and how the current suppliers have performed along with the risk associated with them. It helps to define the outcomes for the transformation rather than just the cost-saving and technology advancement.
  • Selecting the right integrated cloud solution supporting the agile framework is just one part of the process. The other key elements towards success are people and process.
  • Identifying C-level executive who will tell the company(ie) about the program and give the message for the transformation intent? Formulate a strong change management team that continues to communicate and promote your project and keep the Sponsor, stakeholders, and end-users engaged. Identify the Decision Makers Early. When there’s a decision that must be made, who is empowered to make it?
  • Decision making needs to be done with the right trade-off outcome elements. It needs to be articulated on why and to what extent they have chosen to overweight a certain element, and trade-offs they are making to achieve the necessary results.
  • The design signs off needs to be measured along with the impact on the outcome. More often than others, overemphasis on one element leads to an unsatisfied group and lose the strategic intent of the transformation. Also, keep in mind in a true agile SAAS environment – if a decision that is made during design needs to be changed later, that’s ok. Cloud is flexible (and very forgiving!).

This approach helps procurement functions find the right balance of outcomes (cost reduction, compliance, speed, and quality) while creating the agile future-proof system. As a result, success can well be achieved by creating the right foundation and building a comprehensive model, which is inclusive of processes and capabilities that support the true agility towards intended transformation.


Pic Credit: Fauxels, Pexels

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      Author's profile photo Sumeet Sawhney
      Sumeet Sawhney

      Rajesh, you touched upon a very important point on static data analysis trap that many companies fall into and the results are compromised. Your recommendations provide a holistic view on how one can not only survive during COVID19 but to have a sustainable supply chain that can withstand any unforeseen challenges, which may arise in future.

      I shared your insights with in my professional network among global SCM executives and they have embarked their journey keeping these in mind. I am sure this will have an amplified impact not limited cloud adoption but actual institutionalization of sustainable supply networks that can be shared across the business network.


      Author's profile photo Ameet HUNDEKARI
      Ameet HUNDEKARI

      Very interesting piece Rajesh. Great write up. I concur with you totally on the trend to move from linear to circular value chain by the CxO's and its a refreshing change to see that many top decision makers are now looking at things more holistically.

      I have used your well structured approach to deliver on the larger transformation vision with some of my customers in EMEA South region (especially in Spain, Turkey, UAE and KSA) and almost all of them have positively received this, some of them already have started using this in their current and on going projects and a few other are keen to look at embedding this in future projects.

      Kudos on the great job.