What should Procurement teams be doing in these turbulent times.

Procurement people must act now to protect businesses from impending shocks because supply chains are "the first to feel the impact" of inflation and recessions.

Here are 5 points procurement professionals should consider:

1. “Flawless execution” becomes procurement’s primary mission - People in procurement should implement efficiency plans while remaining focused on their critical role in fulfilling demand to capture margin.

2. Manage overhead cost reductions - Most supply chains already operate with very little overhead costs. However, it’s important to focus on maximizing the ability of the supply chain to control inventory and optimize the cost of product supply

3. Visibility - Economic downturns can bring opportunities to increase margins and get ahead of competitors, yet this cannot be achieved without visibility. In a volatile supply market, running towards cheaper options won’t necessarily deliver value. Identifying waste and spending better will prove more effective than reducing costs.

4. Increase local suppliers - procurement teams should look to local suppliers to mitigate rising fuel costs where possible an shorten lead times. 5.

5. Protect investment spending - While it might be tempting to make savings on projects which feel less time critical, procurement teams should be protective about planned technology investments so they don't fall behind competitors.

Are you doing your procurement right?