8 Ways to Make the Best of Remote Working in Procurement
Ngaire Elizabeth Guzzetti
Technical Director Supply Chain at CyXcel, Chartered FCIPS
With the current climate looking as though it is going to be around for quite a while longer- possibly eternally- it is vital we ensure we take every opportunity to optimise our methods of working. There is a plethora of chances to do so, in all aspects of business, however this article seeks to focus on eight specific topics;
> Adapt
> Re-set goals
> Digitalise
> Investigate what others are doing
> Check in with Suppliers
> Focus on communication
> Encourage innovation
> Stay positive.
Adapt
It is imperative we embrace change. We continue to face much uncertainty thus should focus on the elements we can change rather than worrying about what we cannot. Some organisations were quick to set up all employees to work from home, some have still been unable to do so and persist in seeing their employees on extended furlough whilst the company burrows deeper into turmoil.
The Harvard Business Review illustrates the need to adapt to gain competitive advantage in its publication, “Adaptability: The New Competitive Advantage,” (by Martin Reeves and Mike Deimler);
“Sustainable competitive advantage no longer arises exclusively from position, scale, and first-order capabilities in producing or delivering an offering. All those are essentially static. So where does it come from? Increasingly, managers are finding that it stems from the “second-order” organizational capabilities that foster rapid adaptation. Instead of being really good at doing some particular thing, companies must be really good at learning how to do new things.”
Adapting processes should be a key focus, such as changing stages in our RFx process i.e. physical supplier presentations can be done on Microsoft Teams or WebEx. For most of the companies who reacted quickly, they have seen minimal impact on their sourcing strategy successes within the confines of the manageable effects.
Adapt to accommodate different team member’s needs.
We need to be mindful of team members may have disabilities you are unaware of if they are not physically visible. For example, mental health challenges, dyslexia, undiagnosed autism, OCD; all of which might not be apparent in a 30-minute call where you are working on something else whilst chatting to them. Make the time to make the difference. Understand your team fully, they need you now more than ever to understand and adapt your approach to their differing needs to create a high functioning, dedicated and loyal team.
Adapt to change
If you have waited until now to review your processes, it is critical to do so immediately. You may still be on furlough; you may not have had capacity- but you need to plan and implement to adapt to change as soon as possible.
Some people are instinctively opposed to change, this needs to be accounted for. For example, if you have previously experienced resistance to change within your team, focus on those previous blockers and invite them to participate in the creation of strategies, short-, mid- and long term. Once they are invested, they are more likely to not only support but to also promote the benefits of the change. Thebalancecareers.com point out how important team involvement is in its article, “Change Management Lessons About Employee Involvement,” (by Susan M. Heathfield);
“Employee involvement is the difference between sad and unhappy foot-draggers and engaged, excited employees who were trusted to give their input.”
Re-Set Goals
Revisit the goals and aims you laid out during your strategy at the beginning of the year. Now is the perfect time to be reviewing with the cold nights drawing in providing comfort that a new year is just around the corner. Take this opportunity to assess whether the goals are still achievable and realistic, they might require dramatic amendment to align with the new world. For example, where your focus might have been on driving savings, it may now need to be to invest in suppliers to ensure their survival and continuation of delivery, whilst always ensuring you align with your overarching company strategy. Where as our previous strategy was to avoid suppliers in financial difficulty like the plague, we now find ourselves littered with moral obligations to try and save small businesses who might only be able to be replaced with other companies facing financial instability anyway.
Digitalise
There has never been a better time to take advantage of the digitalisation opportunities. Obviously, due diligence is still integral, especially where confidential information is being shared, but the speed at which implementation, testing and training is now required to be completed has led to adapted, simplified tendering processes as the need for solutions intensifies.
From a simple e-Signature tool through to complex digital tools to manage the end to end sourcing lifecycle with integrated contract storage and reporting options, now is the time to invest as without doing so companies will fall behind the industry standard. There is such a wealth of opportunities and a business unwilling to immediately invest will suffer long term, possibly irreparable, damage as they fail to reap the benefits achievable from the available efficiencies digitalisation provides.
Scoutrfp.com vocalises the fierce necessity for procurement teams to digitalise in its high level review of the Gartner White Paper, “Gartner Predicts 2020: Sourcing and Procurement”;
> “Automation will require processes to support real-time transactions to stay competitive
> Procurement organizations will demand real-time analytics to match the increased pace of operations”
Investigate What Others Are Doing
It is necessary not only to keep up, but to stay ahead if you want to be a high performing team. Join networks, WebEx’s, round tables- we might not be able to attend conferences in person anymore, but the number of online conferences has dramatically increased- which has greatly benefited accessibility. We can now join an event in a foreign country in the comfort of our PJ’s. No longer does time zoning have such a big impact, both with the increased acceptance of flexible working and conferences/ presentations more widely being recorded to watch at a time convenient to individual audience members. It’s almost like we’ve just, finally, woken up to Globalisation- and all it took was a pandemic to recognise and accept the true path to progression.
CIPS advocate the sharing of knowledge, within the confines of your confidentiality obligations. By attending events such as its “CIPS Breakfast Briefing,” you can gain real insight from peers and industry professionals on how to stay ahead of the curve, learning about different tools and methods you can implement for the benefit of you, your team and your business.
Check in with Suppliers
Suppliers might be vulnerable. They might be facing financial hardship or having to choose between losing their employees or losing their profits. Being a ‘good buyer’ is not only showing the professional emotional intelligence expected of high-performing experts but can also help strengthen the relationship which brings a whole host of advantages, including (but not limited to); potential for better service provision and increased transparency eventually leading to bottom-line savings.
Suppliers may be opting to take advantage of the furlough scheme which could be impacting delivery of your goods or service, when in reality if you offered pre-payment this would afford them the advantage of reopening their business and thus reinstating some employees, benefiting society as a whole.
It is imperative to enhance due diligence activities. We may no longer be able to do on site visits/ audits in the same way but embrace the tools that are available. Video-conference audits, financial report investigations, google news, even simply asking the supplier if they are facing struggles can all contribute to a better oversight of potential risks.
According to Supply Management Magazine’s article “Coronavirus exposing supply chain failings” (by Richard Wilding);
“Companies should map and continually monitor for vulnerabilities in their supply chains in order to anticipate risks and threats and look to widen sourcing locations even if they involve higher unit costs. Developing new partnerships can take time.”
Rapidratings, “Covid-19 and Supply Chain” white paper stresses the importance of increasing the monitoring of risks in your supply chains;
“Understanding which areas contain more risk allows companies to mitigate and avoid disruptions as early and to the best degree possible.”
By intensifying our monitoring of suppliers throughout our supply chains we can plan business continuity better for various scenarios where risks are identified. This is a rapidly moving time of change, it is no longer adequate to complete due diligence on a quarterly basis. Financial reports must be reviewed on a monthly basis as a minimum, in combination with opening up transparency and allow a platform for two way conversation with key suppliers to openly discuss any concerns or challenges, and where possible, collaborate to find solutions. Unconventional resolutions might be required, for example, purchasing machinery that would increase supplier productivity and make up for reduced human resource, but which the supplier is unable to afford, and renting it back to them.
Focus on Communication
Listen. Listen to your teams, your peers, your suppliers, your industry, your leaders (and your medical professionals). Some may be missing the office interactions, like having a water cooler two minute catch up. Some might be feeling cabin fever is setting in. Some might be worried about friends or family, and feel they no longer have a support network. Some might be suffering even worse. Without listening it is almost impossible to uncover challenges and offer solutions or at least, sympathy.
Ensure you are actively listening, do not check emails or text messages. Try to remove all potential distractions before the conversation, and wherever possible always use your webcams to allow for increased non-verbal communication. If the other party (or parties) feel you are engaged, they are more likely to open up. There is such a range of communication methods available, ensuring you opt for the most suitable platform will benefit the receiver (and, as such, yourself)- this might be different for different people, depending on their preferences. Business.tutsplus.com details the importance of good communication in its article, “17 Ways to Use Active Listening Techniques in Online Communication,” (by Adrian Try);
“Business depends on communication, and communication is a two-way street. Not only do we need to develop the skill not just of making ourselves understood clearly and accurately, but we need to return the favor and put some effort into understanding the other person.”
By opening the channels of communication, you can build trust and respect, learn from your conversations, and adapt as required.
Encourage Your Team to Innovate and Suggest Ideas
Perseverance is key to innovation, be open to all suggestions as ‘there’s no such thing as a bad idea’ (well, except that one time...). As already mentioned, people support what they help to create. By supporting the flow of ideas and encouraging research and trials you are allowing ownership of creativity which can only serve to benefit morale and thus retention. Brainstorming in small groups where you facilitate rather than lead, actively encourage participation, can lead to tangents and inventions you might never have thought of by yourself. Whilst not all ideas will be possible, they might spark a move in a different direction, and if nothing else, we can always learn from failure.
Braineet.com describes the benefits of encouraging employee innovation in its article, “16 Techniques to Encourage Innovation in the Workplace,” (by Alexis Fournier);
“Encouraging workplace innovation not only helps companies stay on top of the market and defend their bottom lines: innovative workplaces are also happier workplaces, with consistently higher levels of employee satisfaction and retention.”
And finally…
Stay Positive
Dan Carnegie speaks about the dangers of the three C’s: criticism, complain, condemn. We are facing much adversity, an overabundance of challenges, which many people will be struggling with for a multitude of reasons. We must be mindful of moaning- it could make us perceived as a victim, or even worse- a villain propagating bad vibes.
Focus on controlling the controllable’s. Both negativity and positivity are contagious. Which would you rather disseminate? It is crucial we at least attempt to put a positive spin on the covid-19 related challenges this pandemic has brought. If we don’t, we risk falling into the ‘victim’ levels of the positivity ladder- and demotivating those around us which will ultimately lead to loss of productivity and harm the overall company profit. Drilling to the route of any negativity will help you understand how it can then be addressed- and it is important you make the changes needed to address this.
Being a positive person can be hard, especially when you have your own challenges both personal and professional. Writing down your key motivators and repeatedly referring to them can make a difference. I strongly urge you to look at what not only motivates, but energises you, and use those key themes to help you to develop your strategy for working in this sometimes testing and challenging remote world. Look for opportunities, and whenever you can, find time to smile, as Roald Dahl once wrote;
“A person who has good thoughts cannot ever be ugly. You can have a wonky nose and a crooked mouth and a double chin and stick-out teeth, but if you have good thoughts they will shine out of your face like sunbeams and you will always look lovely.”